IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH C.W.P NO. 17576 OF 2007 DECIDED ON : 19.02.2009 Sudha Singhal ...Petitioner versus HUDA and another ...Respondents CORAM : HON'BLE MR. JUSTICE SURYA KANT Present : Mr. Sanjiv Gupta, Advocate, for the petitioner. Mr. Sanjeev Sharma, Advocate, for the respondents. SURYA KANT, J. (ORAL) The petitioner seeks a direction to restrain the respondents from charging penal and compound interest on the delayed installments, including those required to be made towards enhanced compensation for the acquired land. The plot bearing No. 328-P, Sector-5, Karnal was allotted to the petitioner way back on 07.04.1992 (Annexure P-1). After paying 25% of the allotment price within one month, the petitioner was required to pay 75% of the allotment price by way of installments as per the Schedule given in Clause 6 of the allotment letter. The first and last installments became due on 07.04.1993 and 07.04.1998 respectively. It is further stipulated in the allotment letter that in case of non- C.W.P NO. 17576 OF 2007 -2- payment of the installments as per the Schedule, the allottee shall be liable to pay interest @ 15% from the date of offer of the possession. It is the case of the respondents that the development works were completed in the year 1994 and the petitioner was intimated on 11.07.1995 to take the possession of the plot (Annexure R-2). Meanwhile, the compensation for the acquired land was also enhanced and the petitioner was asked to pay the additional amount on account of enhanced compensation. Neither the due installments nor the enhanced compensation were paid. According to the respondents, the petitioner is in arrears of more than Rs.17 lacs. Having heard learned counsel for the parties at some length and keeping in view the principles explained by the Hon'ble Supreme Court in “HUDA vs. Raj Singh Rana” AIR 2008 S.C 3035, I am of the considered view that the petitioner cannot be exempted from payment of penal or compound interest, which are integral part of the bilateral agreement and the fact that there is inordinate delay and repeated defaults by him towards payment of the installments/enhanced compensation. The petitioner's plea that no development work has been carried out though is seriously disputed, does not absolve him from the consequences arising out of breach of the contract or under the Rules/Regulations. Consequently, this writ petition is disposed of with a direction that in case the petitioner C.W.P NO. 17576 OF 2007 -3- deposits the entire outstanding amount within a period of two months, no action like resumption of the plot shall be taken against him. Disposed of. FEBRUARY 19, 2009 (SURYA KANT) shalini JUDGE