J U D G M E N T

Altamas Kabir,J.

1. Leave granted.

2. One Baldev Singh Nagar was allotted residential plot No.718 (later on re- numbered 883) measuring 14 marlas in Sector 13 of the Urban Estate at Karnal under the provisions of the Punjab Urban Estate (Development and Regulation) Act, 1964, which was repealed by the Haryana Urban Development Authority Act, 1997. The said plot was subsequently transferred to the respondent herein, Shri Raj Singh Rana, as will be evident from the letter dated 22.3.1974 addressed to the respondent by the Estate Officer, Urban Estate, Karnal. In the said letter various conditions have been set out in respect of the said allotment, of which we are concerned with the condition nos. 1,2,3,4,8 and 15, which are reproduced hereinbelow:

"From

The Estate Officer,

Urban Estate,

Karnal.

Transferred vide Memo No.E.O.(M)- 76/5235

Dated 01.10.1976 with condition No.16

To

Shri R.S.Rana

S/o Shri A.S.Rana,

V.P.O. Garhi

Distt. Sonepat.

Memo No.1664/718/14/E.O/K

Dated : 22.3.1974

Subject : Allotment of Residential plot in the Urban Estate, Karnal.

Reference your application dated 25.9.1971 for the allotment of residential plot in the Urban Estate at Karnal.

1. Plot No.718 measuring 14 Marlas in Sector 13 of the Urban Estate at Karnal is hereby allotted to you. The total tentative sale price of said plot is Rs.12250/- against which you have already deposited Rs.6,125/- of the price mentioned in part 1 above is Rs.Nil.

2. The plot is preferential one and an additional price at the rate of 10 per cent of the price mentioned in para 1 above is Rs. Nil.

3. The total tentative sale price of this plot (normal plus preferential cost) is Rs.Nil.

4. The above price of the plot is subject to variation with reference to the actual measurement of the plot as well as in case of enhancement of compensation of acquisition cost of land of this sector by the court or otherwise and you shall have to pay this additional price of the plot, if any, as determined by the Department within 30 days from the date of demand.

5. .......

6. .......

7. .......

8. Balance 50 per cent of the total tentative sale price shall be payable either in lumpsum within 60 days from the date of issue of allotment letter without interest or in 2 equated instalments with interest at the rate of 7 per cent per annum. The first and remaining instalments of the balance amount together with interest at the rate of 7 per cent per annum on the unpaid amount of the total tentative sale price shall fall due to payment as under and no notice shall be served upon you to pay the same but in case in instalment is not paid in time, you will be served with a notice to pay by same within a month together with a sum not exceeding the amount of the instalment as may be determined by the undersigned, by way of penalty. If the payment is not made within the said period of such extended period as may be determined by the undersigned, not exceeding three months in all from the date on which the instalment was originally due, the same will be recovered as an arrear or land revenue or action will be taken under Section 10 of the Punjab Urban Estate (Development and Regulation) Act, 1964 :-

No. of instalment Due date on which the Payment is to be made

First 2958.93+28.75 = 3387.68 21.3.1975 Second 3166.07+221.61 = 3387.68 21.3.1976

Third Fourth Fifth Sixth:

9. .....

10. .....

11. .....

12. .....

13. .....

14. .....

15. This allotment is subject to the provisions of the Punjab Urban Estates (Development and Regulation) Act, 1964 and the rules framed there under as amended from time to time and you shall have to accept and abide by them.

16. .....

17. .....

Sd/- Estate Officer Urban Estate Karnal"

3. There is no dispute that the entire amount, as initially computed as tentative sale price, was fully paid by the respondent, together with further amounts on account of enhanced compensation paid for the plot, on the basis of the demand notices issued to the respondent from time to time. The problem aros