RAM GOPAL Vs. HARYANA URBAN DEVELOPMENT AUTHORITY

JUDGEMENT

(1.) - This petition filed under Article 226 of the Constitution challenges charging of compound interest and penalty on enhancement as well as on the instalments. A further direction has been sought to the respondents not to charge the compound interest on delayed installments and to charge the amount as per the terms and conditions of the allotment letter.

(2.) BRIEF facts of the case are that as a result of an open auction Booth No. 9, Sector 13 Extension, Karnal, was allotted in the names of Sarvshri Ram Gopal (petitioner), Naresh Kumar and Kishori Lal for a sum of Rs. 2,01,000/-, vide Office Memo. No. 12866, dated 5.8.1985. A sum of Rs. 20,100/- was deposited as bid money at the time of auction. On 13.9.1985, possession of the site was given and an amount of Rs. 30,150/- was required to be deposited within 30 days from the date of acceptance of the bid. It is claimed that the balance amount of Rs. 1,50,750.08 paise was to be paid with 10% simple interest in terms of clause 5 of the allotment letter. It is pertinent to mention here that the petitioner Shri Ram Gopal and others entered into an agreement with Smt. Mukesh Gupta, who purchased the booth in question and obtained a General Power of Attorney from the petitioner and others. The present petition has been filed through Smt. Mukesh Gupta wife of Shri Om Parkash Gupta being General Power of Attorney of Shri Ram Gopal.

(3.) AGAINST the resumption order an appeal was filed by the petitioner Ram Gopal and other allottees before the Administrator, HUDA, Panchkula, which was dismissed on 11.9.2001, by holding that the appellant-petitioner were given adequate chance to deposit the dues but he failed. It was further found that they have occupied the premises in question and running business without making outstanding installments to the HUDA. Against the order dated 11.9.2001, passed by the Administrator, a revision was preferred before the Financial Commissioner and Secretary to Government Haryana, Town and Country Planning Department, Chandigarh. During the hearing of revision petition, the GPA Smt. Mukesh Gupta gave an undertaking to deposit the outstanding dues alongwith interest as per allotment letter, in the event of restoration of site. However, charging of interest over and above the rate of interest mentioned in the allotment letter was agitated.