JUDGMENT

S.B. Sinha, J. —

1. Leave granted.

2. First respondent invited applications for allotment of 3950 free hold residential plots in Sector 76-80, SAS Nagar, Mohali. Appellant applied for allotment of a plot measuring 500 sq. yards on 13.1.2001. He deposited the requisite earnest money therefor being a sum of Rs.1,87,500/-. He was successful at the draw of lots for allotment of a plot which was held on 30.3.2001. A letter of intent was issued on the same day. Before the said draw of lots, a brochure was issued which, inter alia, contained the following clauses :

“2. REFUND OF EARNEST MONEY

In case applicants asks for refund before draw of lots for issuance of letter of intent, refund shall be allowed after deducting the processing fee of Rs. 500/-.

Unsuccessful applicants shall be refunded their earnest money after 90 days from date of draw. However, interest @ 10% per annum shall be allowed for the period beyond 181st day in case refund is made after 180 days.

In case, the successful applicant refuses to accept the offer of allotment and his refusal is received after the draw of lots and within 90 days of issue of letter of intent 10% of earnest money deposited shall be forfe