Municipal Corporation Chandigarh & ... vs M/S. Shantikunj Investment Pvt. Ltd. ...

In order to appreciate the controversy involved in the matter, we may refer to few bare facts in the case of Municipal Corporation, Chandigarh & Ors. vs. M/s. Shanti Kunj Investment Pvt. Ltd. in SLP(Civil) No. 12794/2001. Seven petitioners in the aforesaid petition were the allottees of different commercial sites. The grievance was that the Chandigarh Administration has failed to provide basic amenities/facilities for use and occupation of the sites sold to them. It is alleged that they are guilty of mal- administration. They have arbitrarily charged the ground rent, interest and penal interest and they are resorting to the resumption of the sites for non- payment thereof. Therefore, all these petitioners filed joint petitions in the High Court for redressal of their grievances.

On February 12, 1989 the Chandigarh Administration auctioned a godown site No. 290, Sector 26, Chandigarh. The petitioner, along with two brothers gave a bid for a premium of Rs. 22,10,000/-. It was accepted and they deposited 25% of the bid money, viz. Rs. 5,52,500/-. The letter of allotment was issued on March 16, 1989. The site was given for 99 years on lease-hold basis. As per the terms of allotment, the petitioner had to pay the amount along with interest @ 7% in three equal yearly installments of Rs. 6,31,590/-. This payment had to commence from the date of auction. Besides that, the allottee had also to pay an annual ground rent @ 55,250/- for the first 33 years. The petitioner commenced the construction, but he found that there were high voltage electric wires passing over the site. The sewerage system had not been laid on the site. There were a large number of Jhuggies adjacent to the place. The petitioner submitted representation to the Estate Officer with a request to remove the unauthorized Jhuggies and to take necessary steps for providing the amenities. But no amenities such as roads, water supply, landscaping etc. were provided. It was alleged that since the petitioner had paid the entire premium as provided under the Act and Rules, therefore, no interest or ground rent can be charged till all the amenities, as required under the Act and Rules, are provided. Hence, with this grievance, the petitioner approached the High Court. The High Court examined all the provisions and came to the conclusion that Chandigarh Administration cannot charge interest @ 18%. Though, initially the interest was charged as 7%, but ultimately by notification it was increased to 10%. It was held by the Division Bench that there was no notification for charging the interest @ 18% and it was conceded before us that so far as this part of the order is concerned, the Administration does not challenge and the petitioner will be charged @ 10%.

14. Execution of lease deed. (1) After payment of 25 per cent premium the lessee shall execute a lease deed in Form B, B-I, B-II, or C, as the case may be, in such manner as may be directed by the Estate Officer within six months of the date of allotment/auction or within such further period as the Estate Officer may, for good and sufficient reasons, allow.

SLP(Civil) No. 22517/2002. No allotment was made and no payment was deposited except the initial payment of 10%. Therefore, this petition is misconceived and the same is accordingly dismissed.

As a result of our above discussion, the order dated 2.2.2001 passed by the Division Bench of the High Court of Punjab & Haryana in C.W.P. No.959 of 1999 [ M/s.Shanti Kunj Investment (Pvt) Ltd. vs. U.T.Administration Chandigarh & Ors.] which has been followed in C.W.P. 960 & 5874 of 1999 and C.W.P. No. 5009 of 1998 is set aside and orders dated 10.5.2001, 13.11.2000 & 13.9.2001 passed in C.W.P.No.5561 of 2000, W.P.No. 19356 of 1998 & C.W.P. No. 10233 of 2000 are also set aside. Consequently, the appeals arising out of S.L.P.(c) Nos. 12794, 12987, 12935& 13449 of 2001; S.L.P.(c) No. 12995 of 2002,S.L.P.(c) No.16503 of 2001 and S.L.P.(c) No.18911 of 2002 are allowed and the cases are remitted back to the High Court for deciding each case on its own merit. Rest of the cases excepting S.L.P.(c) No.22517 of 2002 i.e. appeals arising out of S.L.P.(c) Nos. 22515, 18978, 18353, 23941, 23737 & 23738 of 2002; S.L.P.(c) Nos. 14289, 2948, 3601, 9178& 5748 of 2003 and S.L.P.(c) Nos.13640-13641 of 2004 are accordingly disposed of and are also remitted back to the High Court for being decided in the light of the observations made above. No costs.