MUNICIPAL COUNCIL, HANUMANGARH Vs. SWETA MAREJA

JUDGEMENT

(1.) These special appeals are directed against a common judgment dated 9.5.18 passed by the learned Single Judge of this court, whereby the writ petitions preferred by the private respondents questioning the legality of the demand of 15% interest on the balance bid amount payable in respect of the commercial plots purchased by them in open auction, have been allowed and the amount of interest deposited by them under protest, is directed to be reimbursed within a period of four months. It is further directed that on failure of the appellant herein in refunding the amount within the aforesaid period, the private respondents shall be entitled to interest on the amount @ 9% per annum.

(2.) The facts relevant are that the appellant-Municipal Council, Hanumangarh, issued an auction notice dated 25.11.08 for inter alia sale of 38 commercial plots in Gulmandi Extension Commercial Scheme, Hanumangarh Town, under the provisions of Rajasthan Municipalities (Disposal of Urban Land) Rules, 1974 (for short "the Rules of 1974"). The auction was scheduled to be held on 18.12.08. The private respondents herein participated in the auction and being highest bidder, the auction was knocked down in their favour. As per the terms and conditions of the auction, 1/4th of the auction amount was required to be deposited at the conclusion of the auction and the remaining 3/4th amount was required to be deposited after confirmation of the bid within 30 days from the date of receipt of the notice in this regard. The private respondents herein who were successful bidders for different plots, deposited 1/4 of the bid amount. As a matter of fact, the plots auctioned were under encroachment and therefore, according to the private respondents, a decision was taken by the Municipal Council, Hanumangarh that auction made was subject to the condition that the remaining 3/4 of the bid amount shall be deposited only after removal of encroachments and if the encroachments are not removed, 1/4 of the bid amount deposited by the auction bidders shall be refunded to them with interest @ 18%. According to the respondents, they made representation and offered to deposit the remaining bid amount but the same was not accepted inasmuch as, the encroachments were not removed. Later, the Municipal Council, Hanumangarh, in its meeting held on 25.7.15 keeping in view the provisions of clause (f) (iii) of Annexure A appended to the Rules of 1974, resolved to refer the matter to the State Government seeking permission for regularisation of the auction on payment by the bidder. It was clarified that in respect of three plots in compliance of the directions of the court, the remaining amount of the bid has already been deposited by the successful bidders.

(3.) The State Government in its turn after due consideration vide order dated 18.11.15 while waiving the amount of penalty, issued sanction for regularisation of the auction sale on the successful bidders depositing 3/4 of the bid amount alongwith simple interest @ 15%. Accordingly, the Commissioner, Municipal Council, Hanumangarh, issued notice to the successful bidders, the private respondents herein, to deposit the 3/4 amount of the bid alongwith interest @ 15%.