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PUNJAB & HARYANA HIGH COURT
J.M.Tandon, J.
Sh. Bhagwant Singh
Versus
State Of Punjab
Civil Writ Petition No. 3628 of 1982,
Decided On : MAY 30, 1983
CANCELLATION OF ALLOTMENT - PUNJAB URBAN ESTATES (DEVELOPMENT AND REGULATION) ACT, 1964 - SECTION 11-A - REASONABLE OPPORTUNITY OF HEARING - ALLOTTEE NOT PROVIDED WITH COPIES OF DOCUMENTS OR INFORMATION REQUESTED - CANCELLATION ORDER SET ASIDE.
Fact of the Case:
The petitioner was allotted a plot in an urban estate in 1980. In 1981, the Punjab Urban Estates (Development and Regulation) Amendment Act, 1981 introduced section 11-A in the Act, which empowered the State Government to cancel any sale, lease, or other transfer of any site in an urban estate if it appeared that such transfer was made in contravention of the Act or any rules made thereunder or was fraudulent or otherwise inexpedient. In 1982, the petitioner was issued a show cause notice under section 11-A of the Act, asking him to show cause why the allotment of the plot in his favor should not be canceled. The petitioner requested copies of documents and information to enable him to respond to the show cause notice, but his request was not complied with. The petitioner did not submit a reply to the show cause notice and the impugned order canceling the allotment of the plot was passed.
Finding of the Court:
The court held that the petitioner was not afforded a reasonable opportunity of hearing before the impugned order canceling the allotment of the plot was passed. The court noted that the petitioner had requested copies of documents and information to enable him to respond to the show cause notice, but his request was not complied with. The court also noted that the impugned order stated that the petitioner's reply to the show cause notice had been considered by the Government, but the fact was that the petitioner had not sent any reply to the show cause notice.
Issues: Whether the petitioner was afforded a reasonable opportunity of hearing before the impugned order canceling the allotment of the plot was passed.
Ratio Decidendi: The court held that the power under section 11-A(1) of the Act could be exercised by the State Government in the matter of cancellation of any sale, lease, or transfer of any site in an Urban Estate. It is understood that such power could be exercised by the competent authority after affording a reasonable opportunity of hearing to the affected party.
Final Decision: The court allowed the writ petition and set aside the impugned order canceling the allotment of the plot.
J.M.Tandon, J.
1. The Administrative Secretaries exercised the powers of the Ministers in terms of the Rules of Business during the period of Governors Rule in the State of Punjab in 1980. The allotment of plots in Urban Estate out of the discretionary quota which could otherwise be made by the Minister could thus be made by the concerned Administrative Secretaries during that period. In May, 1980, when the State of Punjab was under Governors rule, the petitioner was allotted plot No. 2009 (500 Square Yards) Phase X in Sahibzada Ajit Singh Nagar (Mohali) Urban Estate out of the discretionary quota under the orders of the Administrative Secretary. The petitioner made the initial deposit and was given the possession of the plot. In June, 1980, he was allotted plot No. 707, Phase I in Sahibzada Ajit Singh Nagar by way of exchange for plot No. 2009. On November 27, 1980, the allotment of the plot made in the name of the petitioner was cancelled. The petitioner assailed the cancellation order in Civil Writ Petition No. 580 of 1981 which was disposed of on September 23, 1981, by the following order:-
"It is stated by Mr. J.L. Gupta, learned counsel appearing for the respondents, that the impugned order cancelling the allotment of the petitioners has been withdrawn. The learned counsel further states that if the Government hereafter takes any action for the cancellation of the allotment of the petitioners, then it would proceed in accordance with law and before passing any order, full opportunity of hearing would be given to the petitioners and a speaking order would be passed. In view of what has been stated by the learned counsel for the respondents, the learned counsel for the petitioners states that these petitions be dismissed as withdrawn. We order accordingly. It may be observed that in case an adverse order is passed against the petitioners and in case they choose to file fresh petitions in this Court, then they would be entitled to raise all the objections which they have taken in these petitions, available to them."
In view of the undertaking given in Civil Writ Petition No. 580 of 1981 the order dated November 27, 1980, cancelling the allotment of plot No. 707, Phase I, Sahibzada Ajit Singh Nagar was withdrawn vide Memorandum dated February 24, 1982 (P.10).
2. The Punjab Urban Estates (Development and Regulation) Amendment Act, 1981, inter alia introduced section 11-A in the Punjab Urban Estates (Development and Regulation) Act, 1964 (hereinafter the Act). The relevant part of section 11-A reads :-
"11.A. Power to cancel sale, lease or other transfer.--(1) If it appears to the State Government that any sale, lease or other transfers of any site in an urban Estate has been made in contravention of this Act or any rules made thereunder or is fraudulent or is otherwise inexpedient, it may, notwithstanding anything contained in any contract or any other law for the time being in force, by an order in writing, stating reasons therefore, cancel such sale, lease or other transfer.
(2) Any person aggrieved by an order made under sub-section (1) may within thirty days of the date of communication of the order to him, make an application in writing to the State Government for review of the said order and the State Government may, after giving an opportunity of being heard to such person, either rescind, vary or confirm the said order.
(3) ......................
(4) No order under sub-section (1) shall be made in respect of any sale, lease or other transfer made--
(a) prior to the commencement of the Punjab Urban Estates (Development and Regulation) Amendment Act, 1981--
(i) if such sale, lease or other transfer was made more than two years prior to such commencement, or
(ii) after the expiry of one year from such commencement, or
(b) after the commencement of the Punjab Urban Estates (Development and Regulation) Amendment Act, 1981, after the expiry of a period of one year from the date of such sale, lease or other transfer.
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