Judgment :

Dr. Mukundakam Sharma, J.

1. Leave Granted.

2. In this appeal we are called upon to adjudicate and decide an issue as to whether the land allotted to the appellant could have been cancelled in the manner in which it was done by respondent No. 1 Haryana Urban Development Authority (in short the "Authority").

3. The appeal is filed against the judgment and order of the Division Bench of the Punjab and Haryana High Court, whereby the Division Bench dismissed the writ petition not only on the ground of inordinate delay but also on the premise that no reasonable ground is made out to exercise the equitable jurisdiction of the court under Article 226 of the Constitution of India.

4. In order to appreciate the contentions raised on behalf of the parties it would be necessary to state few facts leading to filing of the writ petition before the Punjab and Haryana High Court.

5. The appellant submitted an application for allotment of a residential plot to the respondent-Authority. The aforesaid request of the appellant was considered and accepted. Accordingly the respondent-Authority passed an order allotting a residential plot to the appellant bearing No. 1042-P in Sector 43, Gurgaon measuring about 135 square meter at a tentative cost of Rs. 4,843.8 per square meter. As the said plot was a preferential one the appellant was required to pay an additional 10% of the price, thus making the total sale consideration at approximately Rs. 7,19,312/-. An allotment letter dated 14-06-2002 was issued by the respondent-Authority to the appellant wherein the terms and conditions of allotment were mentioned. Some of the relevant clauses having a bearing in the present case are extracted below :

Clause 4. In case you refuse to accept this allotment you shall communicate your refusal by a registered letter within 30 days from the date of issue of this allotment letter, falling which this allotment shall stand cancelled and the earnest money deposited by you shall be forfeited to authority and you shall have no claim for damages.

Clause 5. In case you accept this allotment, please send you acceptance by registered post an amount of Rs. 114436.00 within 30 days from the date of issue of allotment letter, which together with an amount of Rs. 65392.00 paid by you along with your application form an earnest money, will constitute 25 percent of the total tentative price.

Clause 6. The balance amount i.e. Rs. 539484.00 of the above tentative price of the plot can be paid in lump sum without interest within 60 days from the date of issue of allotment letter or in six annual installments. The first installment will fall due after the expiry of one year of the date issue of this letter. Each installment would be recoverable together with interest on the balance price at 15% interest of the remaining amount. The interest shall however, accrue from the date of offer of possession.

6. In accordance with the aforesaid terms and conditions of allotment letter the appellant was required to deposit an amount of Rs. 1,14,436/-within 30 days from the date of the said allotment letter. The balance tentative amount of Rs. 5,39,484/-was required to be paid either in lump sum without interest within 60 days from the date of issue of the allotment letter or in six annual installments with interest at the rate of 15% per annum. The interest, however, was to be calculated from the date of offer of possession. Some of the other relevant terms of the allotment letter which would have a bearing while deciding the present matter are extracted hereinbelow :

Clause 10. In case the installment is not paid by the 10th of the month following the month in which it falls due for in the case the additional price is not paid within time, the Estate Officer shall proceed to take action for imposition of penalty and resumption of plot in accordance with the provisions of Section 17 of the Act.

Clause 11. In the event of the breach of any other condition of transfer the Estate Off