SUSHIL KUMAR Vs. HARYANA URBAN DEVELOPMENT AUTHORITY

JUDGEMENT

(1.) THROUGH the instant petition filed under Article 226 of the Constitution the prayer made by the petitioners is for quashing the action of the respondents in charging penalty, compound interest on delayed instalments and also on enhanced compensation. Further prayer made is from restraining the respondents from proceeding further under Section 17 of the Haryana Urban Development authority Act, 1977.

(2.) BRIEF facts of the case are that the petitioners were re-allotted Plot No. 353, Sector 14, Part I, Karnal (Annexure P.1) after payment of instalments by the original allottee. The HUDA authorities demanded enhancement of the price of the land and have also started demanding compound interest on delayed instalments which according to the petitioners is not permissible. In this behalf they made a representation on 15.10.2007 (Annexure P.2).

(3.) IN the reply filed by the respondents the stand taken is that in the allotment letter it has been clearly mentioned that the allottee will have to abide by the terms and conditions stated therein and also the provisions of the HUDA Act, instructions/guidelines and rules/regulations framed thereunder. The respondents vide its policy dated 19.9.1985 (R.1) has decided to charge compound interest which policy was again amended on 22.9.2000 (R.2) and it was decided to charge simple interest w.e.f. 1.9.2000 (lateron from 3.4.2000). The petitioners are liable to pay extension fee and penalty as per para 1 of the re-allotment letter read with condition No. 5 which reads thus :