The enhancement of the price of the plots was not justified under the provisions of the Punjab Urban Estates (Development and Regulation) Act, 1964 and the Punjab Urban Estates (Sale of Sites) Rules, 1965. The claim for the enhanced price was arbitrary and violative of Article 14 of the Constitution.

1. Since common questions of law arise for decision in this Civil Writ Petition No. 13283 of 1991 and six other connected writ petitions, i.e. C.W.Ps. Nos. 13260, 13546, 16209, 19140, 9078 of 1991 and 1329 of 1992, these are being disposed of by this judgement. In all these petitions challenge is to the validity of notice dated 19/07/1991 calling upon the petitioners to pay the revised sale price of plots allotted to them.

2. Reference to relevant facts has been made from the pleadings of C.W.P. No. 13283 of 1991.

3. Darshan Singh Longia and Miss Ravneet Kaur were allotted residential, plots Nos. 700 and 693-C, respectively, measuring 400 Sq. Yds. in Sector 70, Urban Estate, SAS Nagar and Dr. Manmohan Singh was allotted residential plot No. 683 measuring 500 sq. yds. in Sector 70, Urban Estate, SAS Nagar vide allotment letters Annexures P-1, P-2 and P-3 by the Estate Officer, Urban Estates, Punjab, Chandigarh. The terms and conditions of allotment are identical. In the allotment letter of Darshan Singh Longia it was stated that the allotment was being made on the provisional price of Rs. 93,000/- since the rate on which the allotment had to be made in Sector 70 had not been finally approved and that the tentative price of the plot would be intimated to him after the approval by the Government. The allotment letter provides that the allotment is subject to the provision of the Punjab Urban Estates (Development and Regulation) Act, 1964 (for short, the Act) and the rules and policy framed thereunder as amended from time to time. In the notice under challenge, Darshan Singh Longia was informed that allotment of the plot had been made to him on provisional basis; that the price of the plot had been fixed by the State Government at Rs. 3,12,000.00. Payment of the sale price of the plot was rescheduled. Challenge to this enhanced price is on the ground that it is not warranted under the provisions of the Act and Punjab Urban Estates (Sale of Sites) Rules, 1965 (for short, the Rules).

4. Written statement has been filed by the Estate Officer, Urban Estates, Punjab, Chandigarh on behalf of the respondents. The defence to the enhancement of the price of the plots is enfolded in para 1 of the preliminary objections and the same reads thus :-

"That the additional amount has been demanded from the petitioners on account of difference between the provisional rate and the tentative price fixed by the Government in terms of condition No. 1 of the allotment letters (Annexures P/1 to P/3) wherein it was categorically mentioned that since the rate on which the allotment is to be made in the sector has not been finally approved, accordingly this allotment is being made on the provisional price and that the tentative price of the plot would be intimated to you after its having been approved by the Government. The petitioners were allotted plots out of discretionary quota and they accepted the allotment subject to the aforesaid condition and as such they estopped from denying their commitment to pay the amount in question. It is submitted that at the time of making allotment of plots to the petitioners the tenantive price of residential plots of Sector 70, Urban Estate, SAS Nagar had not been fixed by the Government as required under R. 2(e) of the Punjab Urban Estates (Sale of Sites) Rules, 1965. Therefore, Government vide their letter No. 3/413/86-2Hg1/2597, dated 25-2-87 decided to make the allotment on provisional rate of Rs. 155.00 per sq. yd. for plots measuring up to 200 sq. yds. and Rs. 232.50 per sq. yds for plots above 200 sq. yds. but up to 400 sq. yds. (i.e. 11/2 times of provisional price) and Rs. 310.00 for plots measuring 500 sq. yds. (i.e. double the provisional price). A true copy of letter dt. 25-2-87 is attached as Annexures R-1 and R-1/T are their true English translation. Accordingly, the petitioners Nos. 1 and 2 were allotted plots measuring 400 sq. yds. each at the provisional rate of Rs. 232.50 per sq. yd. and petit