The respondent is bound to observe the principle of natural justice before fixing the additional price, which includes granting an opportunity of hearing to the allottees.

M.S.Liberhan, J.

1. This order will dispose of civil writ petition Nos. 3259, 7290, 11969, 13312, 13425, 13437, 13552, 14000, 14016, 14105, 14167 14311, 14500, 14547, 15220, 15316, 15317, 15925, 15959, 16514, 17098 17370 17371 17877, 18249, 18365 of 1994 and 123 and 315 of 1995 and 19828 of 1996 also.

2. The principal issue involved in these writ petitions is as to whether the respondents can demand additional price from the allottees of residential plots in various Sectors of Mohali, and if so, whether the additional price to be charged from the plot-holders can be fixed without granting an opportunity of hearing.

3. In order to determine the issue raised, brief exordium of facts as emerged runs thus.-

The petitioners were allotted plots in various sectors of Mohali from time to time since the year 1983 till date on the tentative price assessed by respondent in consultation with the State.

4. At this stage, it would be expedient to notice the relevant condition of allotment which in verbatim run thus: "liable to any in addition to tentative price, the additional price, if any, determined under the rules." Respondent issued a public notice demanding the deposit of enhanced price at the rates varying from sector to sector. The enhanced price claimed with respect to Sector No. 71, Mohali i.e., the additional price, was at the rate of Rs. 107.94 per square yard, in addition to the original tentative price charged at the time of allotment. Selective individual notice in the stereo-typed form demanding additional price on account of payment of enhanced compensation assessed by various Courts and authorities with respect to the land acquired for various sectors was also issued. It was notified that in the eventuality of the additional price or the enhanced price not paid, the allotment is liable to be cancelled.

5. Learned counsel for the petitioners impugned the demand of additional price broadly on the same grounds, inter alia contending that (1) the additional price claimed from the allottees was assessed or worked out without observing the principle of natural justice. Neither an opportunity of hearing to the effected allottees was granted nor the basis or the parameters to asses the additional price was put to them. Since the State failed to defend the claim of the land owners for enhancement of compensation, diligently failing to lead proper evidence before the acquisition authorities and Tribunals for assessment of the market value of the land and, therefore, the State cannot be permitted to pass their liability of interest on the enhanced compensation as well as the enhanced compensation itself on the allottees.

6. On merits, it was submitted that (i) neither the land price, for all the plots nor enhanced compensation can be distributed, either in equal proportion amongst the plot holders of plotable area or equally on all the plot holders of all the sectors in view of quality of land. Price for plotable plots situated in the Khatans or the big breaches cannot be the same as that of the other lands.

(ii) Respondent could not be exempted from sharing the burden of enhanced price with respect to the plots allotted for public utility services i.e. plots of public utility cannot be exempted from sharing their proportionate liability of the additional price due to enhancement in compensation under the Land Acquisition Act. Burden of the additional price should be spread over on all the allottable plots at Mohali and not according to sector to sector and that too, on the allottees of the residential plots only.

(iii) The petitioners were not made aware of the criteria adopted or the methodology for working out the additional price before or after the issue of demand notice.

(iv) The demand notice for additional price is not only vogue but also shrouded in mystery. Nothing was disclosed as to how much is the enhanced compensation payable with respect to the land allotted to the allottees; allottees were not made aware at wh