GREATER MOHALI AREA DEVELOPMENT AUTHORITY Vs. USHA VIRDI

JUDGEMENT

(1.) Greater Mohali Area Development Authority, SAS Nagar (Mohali), seeks quashing of order dated 12.7.2016 (Annexure P-16) passed by the Special Secretary, Housing and Urban Development Department, Government of Punjab, Chandigarh, whereby he has set aside the cancellation of Letter of Intent (for short 'LOI') in respect of a 125 Sq. Yards plot by condoning the delay in deposit of 15% of the tentative price of the plot.

(2.) In the year 2010, respondent No.1 had applied for allotment of a 125 Sq. Yards plot in Aerocity Project, SAS Nagar (Mohali). She deposited 10% of the total tentative sale consideration as earnest money alongwith the application. A draw of lots was held on 13.10.2010 and respondent No.1 was successful therein. An LOI dated 29.3.2011, was issued in her favour, wherein the tentative price of the plot was mentioned as Rs.40 lakhs and a condition was incorporated that 15% of the price was to be paid within 30 days of the date of issuance of LOI so as to complete 25% of the total tentative sale consideration. Respondent No.1 failed to comply with this condition. On 26.5.2011, she swore an affidavit that she intended to obtain a loan of Rs.12 lakhs for payment of the tentative sale consideration and that the entire outstanding amount would be paid within 30 days of sanction of loan. Simultaneously, she applied for permission to mortgage the plot allotted to her to enable her to raise a loan. Vide letter dated 18.7.2016, the petitioner granted her permission to mortgage the plot. Thereafter, vide receipts dated 3.12.2009 and 15.12.2009, total of Rs.13.41 lakhs was deposited towards the balance outstanding price.

(3.) After the entire tentative sale consideration had been paid, a show cause notice dated 13.4.2012, was issued to respondent No.1 directing her to show cause why 15% of the total tentative sale consideration was not deposited within 30 days of issuance of LOI as stipulated therein and why further action should not be taken to forfeit/cancel LOI. It appears that the first respondent failed to respond to the said notice and vide order dated 9.7.2012, the LOI was cancelled on account of delay of 220 days in depositing the 15% amount. Statutory appeal and revision were also dismissed vide order dated 22.8.2012 and 14.7.2014, respectively.