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2022 Supreme(Raj) 1892

HIGH COURT OF JUDICATURE FOR RAJASTHAN BENCH AT JAIPUR
Inderjeet Singh, J.
Jaipur Development Authority – Appellant
Versus
Akshay Vishnu Real Estate Private Limited – Respondent
S.B. Civil Writ Petition No. 4425 of 2021
Decided On : 14-02-2022

Advocates appeared:
Mr. M.F. Baig, for the Appellant.

The court upheld the provisions of the Jaipur Development Authority Act, 1982, and the applicable interest rates under the Raj. Improvement Trust (Disposal of Urban Land) Rules, 1974, in determining the JDA's obligation to refund the auction bid amount and the interest rate to be applied.

Headnote:

JDA - Challenge to Appellate Tribunal's Order - Jaipur Development Authority Act, 1982, Section 83(8)(A) - The court discussed the provisions of the Jaipur Development Authority Act, 1982, particularly Section 83(8)(A), which allows for reference applications in cases of dispute between the authority and auction purchasers. The court also referred to the Raj. Improvement Trust (Disposal of Urban Land) Rules, 1974, and discussed the applicable interest rates for default in payment and possession of auctioned plots. The court upheld the Appellate Tribunal's order directing the JDA to refund the auction bid amount along with interest at 12% per annum, considering the failure of the JDA to hand over possession of the auctioned plot.

Fact of the Case:

The petitioner-JDA challenged the Appellate Tribunal's order directing the JDA to refund the auction bid amount along with interest at 12% per annum to the respondent-auction purchaser. The dispute arose from the JDA's failure to hand over possession of the auctioned plot despite the respondent-auction purchaser depositing the required amount.

Finding of the Court:

The court dismissed the writ petition, upholding the Appellate Tribunal's order. It found that the JDA had failed to hand over possession of the plot to the respondent-auction purchaser and deemed the interest rate of 12% per annum as just and reasonable, in line with a previous judgment.

Issues: 1. Failure of the JDA to hand over possession of the auctioned plot. 2. Applicability of the interest rate of 12% per annum as awarded by the Appellate Tribunal.

Ratio Decidendi: The JDA's failure to hand over possession of the auctioned plot and the reasonableness of the interest rate awarded by the Appellate Tribunal were the key factors in the court's decision.

Final Decision: The writ petition was dismissed, and the JDA was directed to comply with the Appellate Tribunal's order within 15 days.

ORDER

1. Application for early listing is allowed.

2. This writ petition has been filed by the petitioner-JDA challenging the order dated 16.09.2019 passed by the Appellate Tribunal, Jaipur Development Authority, Jaipur whereby the reference application filed by the respondent-auction purchaser was allowed and the petitioner-JDA was directed to pay a sum of Rs.11,70,000/- to the respondent-auction purchaser along with interest @ 12% per annum from the date of depositing the said amount till the date of order i.e. 16.09.2019.

3. Brief facts of the case are that the petitioner-JDA issued a notice for auctioning the plots of land at Farm Houses in Taru Vihar Farm Yojna, Ballupura, Jaisinghpura Khor, which was published in the daily newspaper on 19.01.2006. The respondent-auction purchaser participated for plot No.76 in the said auction held on 23.01.2006. The respondent-auction purchaser being the highest bidder for the said plot No.76, its sale was confirmed in his favour and he deposited the amount of Rs. 11,70,000/- with the JDA and for the remaining amount a demand letter was issued by the petitioner-JDA requiring the respondent-auction purchaser to deposit the remaining amount within a period of 30 days from the date of issuance of the demand letter, which according to the petitioner-JDA, the respondent-auction purchaser failed to deposit within the stipulated period of time. However, according to the respondent-auction purchaser, when the possession of the plot in dispute was not handed over by the JDA to him, he approached the Appellate Tribunal, Jaipur Development Authority, Jaipur by filing a reference application under Section 83(8)(A) of the Jaipur Development Authority Act, 1982. The Appellate Tribunal after hearing the parties and considering the material before it, passed the order dated 16.09.2019 directing the JDA to make the payment along with interest, as observed above. Hence, being aggrieved, this writ petition has been filed by the petitioner-JDA challenging the order dated 16.09.2019.

4. Counsel for the petitioner-JDA submitted that the order passed by the JDA Appellate Tribunal is against the facts and law involved in this matter and further submitted that the tribunal has committed illegality in giving direction to the petitioner-JDA to refund the amount to the respondent-auction purchaser along with the interest @ 12% per annum.

5. Heard counsel for the petitioner and perused the record.

6. A Co-ordinate Bench of this court in the matter of Jaipur Development Authority Vs. The Appellate Tribunal, JDA Jaipur & Ors. (S.B. Civil Writ Petition No.955/2010 decided on 06.04.2010), has held as under:-

    'Instant petition has been filed by Jaipur Development Authority ('JDA'), assailing the order dt.12/08/2009 whereby the JDA Appellate Tribunal has directed the JDA to refund the amount of auction bid deposited by respondents-2 to 4. alongwith interest @ 12% on the premise that despite auction purchasers having deposited total bid amount the authority (JDA) was unable to hand over vacant & peaceful possession of the property in question.

    The NIT was issued by petitioner JDA on 27/01/2006 for auction of certain farm houses in which respondents-2 to 4 had also participated and being highest bidder, their bid was accepted and total bid amount indisputably was deposited by them on 08/02/2006, details whereof have been referred to by respondents in para no.1 of their Reference application filed before the Tribunal.

    After the total bid amount in terms of the NIT was deposited by respondents, it was obviously expected from the authority, in whom the people still have a faith that the vacant & peaceful possession of the property in auction will be handed over to its purchasers. But it appears that one Vasudev Singhi filed revenue suit and in appeal preferred before revenue appellate authority, interim stay order was granted on 04/02/2006 and it was held that the land in dispute belonged to Bhonri Devi - on account of which, res

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