RAM KISHAN GULATI Vs. STATE OF HARYANA

JUDGEMENT

(1.) The facts necessary for deciding this petition filed by Ram Kishan Gulati and three others for quashing of the notices and orders is sued by the Estate Officer and the Chief Administrator, Haryana Urban Development Authority, Panchkula (hereinafter referred as to "HUDA"), are that on the basis of highest bid of Rs.9,55,500/- given by them in the auction held by respondent No.3, Showroom Plot No.7, Sector 11, Panchkula measuring 574.75 sq. metres was allotted to Shri Agya Ram and Ors. (predecessor-in-interest of the petitioners). They deposited 10% price of the plot at the fall of hammer but delayed the deposit of remaining 15% as required by Clause 4 of the letter of allotment. A part of 15% of the price was deposited on 22.9.1986 and the balance was deposited on 11.10.1986. Notwithstanding this de fault, possession of the plot was delivered to the allottees on 21.6.1988. Thereafter, they constructed the building and occupied the same. Due to non-payment of instalments in accordance with Clause 5 of the letter of allotment, proceedings under Section 17 of the Haryana Urban Development, Authority Act, 1977 (hereinafter referred to as 'the Act') were initiated against Shri Agya Ram and Ors.. Notices under Section 17(1) to 17(4) of the Act were issued to them but they did not deposit the instalments of the price. In stead, Shri S.R. Suri, Advocate who appeared on their behalf before the Estate Officer, Panchkula (hereinafter described as 'respondent No.3') pleaded that interest may not be charged because the development works were not complete at the site. This plea of Shri Suri was rejected by respondent No.3 who observed that the development work had, in fact, been completed. He further held that the allottees are evading the payment of out standing dues. On that premises, he ordered resumption of the site and forfeiture of Rs.2,30,143/- out of amount deposited by the allottees. The relevant portion of the order passed by the respondent No.3, which we have taken from the original file produced by Shri R.S. Chahar is reproduced below:-

(2.) In the meanwhile, proceedings under Section 18(1 )(b) of the Act were initiated against the petitioners and after issuing notice to them, respondent No. 3 passed order Annexure P.6 dated 18.3.1997 directing their ejectment from the plot in question.

(3.) The petitioners have challenged the impugned notices/orders by contending that the respondents cannot charge interest from them because they failed to develop the site in accordance with the provisions of the Act and the Regulations framed there under. Another contention urged by them is that the demand of interest over and above the rate specified in Clause 5 of letter of allotment is without jurisdiction. They have pleaded that after having agreed to charge interest @ 10% on the delayed payment of instalments, the respondents are estopped from charging interest at higher rates.