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2000 Supreme(P&H) 74

PUNJAB AND HARYANA HIGH COURT
G.S. Singhvi and Iqbal Singh, JJ.
Smt. Nisha - Petitioners
Versus
State of Punjab - Respondents
Civil Writ Petition No. 2903 of 1993.
Decided On : 20 January, 2000

Advocates Appeared:
For the Petitioners:Mr. G.S. Bhatia, Advocate.
For the Respondent Nos. 1 and 2: Mr. Rupinder Khosla, D.A.G. Punjab.
For the Respondent Nos. 3 and 4:Mr. R.C. Setia, Senior Advocate with Mr. Sanjiv Sharma, Advocate.

The Corporation must provide transparency in calculations for enhanced price and afford petitioners the opportunity to challenge and make claims, in line with principles of natural justice.

Headnote:

Demand Notices - Quashing - Punjab Small Industries and Export Corporation Limited - Surinder Singh v. State of Punjab and another, 1997(2) PLJ 477 and Harbinder Bajwa v. State of Haryana, 1996(3) PLR 621

Fact of the Case:

Writ petitions filed for quashing demand notices issued by the Punjab Small Industries and Export Corporation Limited (the Corporation) calling for payment of enhanced price of allotted plots.

Finding of the Court:

Directed the Corporation to furnish details of calculations for enhanced price, allow inspection of records, and hear representations from petitioners. Referred to previous court decisions for guidance.

Issues: Challenging demand notices based on understanding of no price revision and claiming rebate/incentive and land subsidy as per letters of intent.

Ratio Decidendi: The Corporation must disclose calculations for enhanced price, allow inspection of records, and hear representations from petitioners. Previous court decisions provided guidance for the directions given.

Final Decision: Disposed of writ petitions with directions for the Corporation to provide details of calculations, allow inspection of records, hear representations, and pass a speaking order on the petitioners' claims.

JUDGMENT

G.S. Singhvi, J. (Oral) - These writ petitions have been filed for quashing of the demand notices issued by the Punjab Small Industries and Export Corporation Limited (for short the Corporation) vide which the petitioners have been called upon to pay the enhanced price of the plots allotted to them.

2. The following are the main grounds on which the petitioners have challenged the impugned demand notices :

(a) the Corporation had allotted plots to them with a clear understanding that there will be no revision of the price and, therefore, it is estopped from charging the enhanced cost; and

(b) the Corporation is bound to give the benefit of rebate/incentive and land subsidy in accordance with the conditions contained in the letters of intent issued to them.

3. The respondent-Corporation and the Estate Officer have defended their decision to charge the enhanced cost by asserting that the plots were allotted to the petitioners on tentative price with a clear stipulation that they will have to pay the additional price if enhanced compensation is to be paid to the land owners in pursuance of the order/judgment of the competent Court. They have also controverted the petitioners prayer for grant of rebate/incentive and land subsidy. Along with the written statement, the contesting respondents have filed a statement showing the details of the enhanced compensation to substantiate their case that the demand of enhanced price is justified.

4. During the course of hearing, learned Counsel for the petitioners argued that their clients will feel satisfied if respondent-Corporation is directed to furnish the details of the calculations on the basis of which the impugned demand notices have been issued and they are given an opportunity to make representation against such calculations and they are also allowed to make claim for grant of rebate/incentive and land subsidy in accordance with the conditions contained in the letters of allotment.

5. Learned counsel for the respondents submitted that the Corporation does not have any objection to the furnishing of calculations to the petitioners. They also stated that the representations, if any, made by the petitioners will be decided by the Corporation in accordance with law.

6. In view of the submissions made by the learned Counsel, we do not consider it necessary to record a detailed order and feel that the ends of justice would be met by directing the Corporation to furnish the details of calculations made by it for raising the demand of enhanced price and to give opportunity to the petitioners to make representative for challenging such calculations and also to make the claim for rebate/incentive and land subsidy with a further direction that the competent authority of the Corporation shall hear such of the petitioners who may make a written request for that purpose and decide their pleas by passing a speaking order. This course of action is consistent with the law laid down by this Court in Surinder Singh v. State of Punjab and another, 1997(2) PLJ 477 and Harbinder Bajwa v. State of Haryana, 1996(3) PLR 621.

7. In Surinder Singhs case (supra) a Division Bench dealt with the issues similar to those raised in the present cases and while accepting the prayer of the petitioners for quashing of the demand notices, the Court gave the following directions :

"17. Resultantly, in view of the observations made above :

(1) The respondent would be entitled to take penal action of resumption only after the demand notice is served individually and not complied with and not on the basis of service through publication. The mode of individual service may be determined by the authorities according to the facts and circumstances of each case as to when the action arises.

(2) The additional price would be enhanced compensation, the expenses incurred in defending or prosecuting the claim along with any other ancillary or expenditure in connection with or incurred thereof. It is this additional price which c















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