The mandatory nature of the provision for payment of the price and the consequences of non-compliance with auction conditions.

Shyama Mann, FC. - This order shall dispose of a revision petition under section 33 of the Displaced Persons (Compensation and Rehabilitation) Act, 1954 which was originally disposed of by the order dated 19.2.1981 of Sh. K.D. Vasudeva, my Ld. Predecessor and the same was set aside by the Honble High Court judgment dated 22.7.1997 in C.W.P. No. 1771/1981 titled as Raj Kumar v. Financial Commissioner Revenue and others.

2. Briefly stated, the facts of the case are that the petitioner Raj Kumar purchased evacuee property No. 2653/9 at Amritsar in open auction for Rs. 9600/- in the year 1969. He deposited earnest money amounting to Rs. 1920/- on 14.11.1969 and prayed for more time to deposit the balance price. He was given an extension upto 6.12.1969. A registered notice was then issued to him on 2.1.70 directing him to produce the challan regarding the payment of balance price by 16.1.70, which notice was received by him on 5.1.70. On his failure either to produce the treasury challan regarding payment or to make an application for extension for depositing the balance amount, the Managing Officer (Sales) cancelled the sale vide his order dated 22.1.1970, thereby forfeiting the earnest money and directed that the disputed property should be transferred to the State Government in Package Deal. However, the Managing Officer (Headquarters), vide his order dated 18.3.74 allowed Raj Kumar (petitioner herein) to deposit the balance amount, which he deposited (Rs. 7680) on 15.4.74. Meanwhile during the pendency of the case, Ajaib Singh respondent No. 5 made an application on 1.1.1977 for the transfer of disputed property to him on the basis of his occupation. The Asstt. Settlement Officer (A)-cum-Managing Officer on 22.12.77 made a suo-moto reference to the Chief Settlement Commissioner, Punjab, for quashing the order dated 18.3.74 of the Managing Officer, but the Chief Settlement Commissioner returned the reference on 4.4.78 for adding the auction file, which, according to him, was necessary for disposing of the case. On receipt of the transfer file, the Asstt. Settlement Officer (Sales)-cum-Managing Officer rejected the request of Raj Kumar (petitioner herein) on 26.11.79 and ordered the disposal of the property under the extant policy of the Rehabilitation Department. Raj Kumar assailed the validity of the orders dated 22.1.70 and 26.11.79 of the Managing Officer (Sales) and Asstt. Settlement Officer (Sales)-cum-Managing Officer, Jalandhar, respectively in appeal before the Settlement Commissioner, who feeling convinced that the delayed deposit of the balance auction price was beyond the control of the auction purchaser and that it was not deliberate, accepted the appeal on 17.12.79 and directed the Asstt. Settlement Officer (Sales)-cum-Managing Officer to issue the sale Certificate in favour of Raj Kumar (petitioner herein), if the property was still available for disposal. Aggrieved by this order, Ajaib Singh (petitioner) preferred a petition before the Settlement Commissioner for being impleaded as a party which request was turned down on 8.1.80. Still feeling dissatisfied Ajaib Singh filed a revision petition before the Chief Settlement Commissioner who dismissed the same vide his order dated 7.5.80. Ajaib Singh filed a revision petition under section 33 of Displaced Persons (C and R) Act, 1954 to challenge the order dated 7.5.80 of Chief Settlement Commissioner. The said revision petition was accepted on 19.2.1981 by Sh. K.D. Vasudeva, Financial Commissioner Revenue, my Ld. predecessor with the following observations :-

"7. I have carefully considered the argument advanced for both the sides and also gone through the record. In the presence of the order of cancellation dated 22.1.1970, passed against respondent No. 5, it was not open to him to seek transfer of the property except by way of challenging that order in appeal and getting it set aside. But apparently he did not choose to do so and cleverly resorted to the device