ORDER

1. Leave granted.

2. The highest bid of Rs. 2,26,00,000/- given by respondent - M/s. Chandigarh Corporate Guides Ltd. in the open auction conducted by the Municipal Corporation, Chandigarh (appellant No. 1 herein) in respect of SCO No. 164- 165 situated in Sector 9C, Chandigarh was accepted by the competent authority. In terms of the condition of auction, the respondent was required to deposit 25% of the premium within 30 days of the auction and the balance 75% in 3 equated yearly installments of Rs. 71,99,192/- along with interest @ 18%. Later on, the annual equated installment was revised as Rs. 69,06,322/-. The respondent paid 25% of the premium i.e. Rs. 57,25,000/- on 29.4.1998. Thereafter, allotment letter was issued in favour of the respondent by Assistant Commissioner, Municipal Corporation, Chandigarh (appellant No. 2 herein). As the respondent failed to pay the balance amount together with interest on due dates, appellant No. 2 after issuing notice to the respondent and hearing the parties passed order dated 12.7.2001 whereby, he cancelled the lease of the site and forfeited 10% of the premium, interest and ground rent. On an appeal preferred by the respondent, Joint S