IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH
SURYA KANT, R.P. NAGRATH, JJ.
S. Harmohan Singh Sethi – Petitioner
Versus
State of Punjab and others – Respondents
CWP No. 4896 of 2009
Decided on: 01.04.2013
non-construction charges - liability of petitioner - Punjab Housing Development Board Act, 1972, Punjab Regional and Town Planning and Development Act, 1995 - The court discussed the liability of the petitioner to pay non-construction charges-cum-extension fee for the period spanning from 1988 to 2000 and again from the year 2001 to 2008. It considered the terms and conditions of allotment, policy instructions, and relevant rules to determine the petitioner's liability. The court also interpreted Rule 12 of the Punjab Urban Planning and Development Authority (Building) Rules, 1996, and its applicability to the case. The decisions of the court in Tehal Singh and Sant Kaur Jabbi's cases were cited and their relevance to the petitioner's case was discussed. The court ultimately set aside the levy of non-construction fee/extension fee for the period spanning from 1988 to 2000 and quashed the demand raised for the period from 2001 to 2008, directing the refund of the amount deposited by the petitioner.
Fact of the Case:
The petitioner was allotted a plot in 1971 but did not construct a house within the stipulated time. The authorities levied non-construction charges/extension fee, leading to a dispute over the petitioner's liability to pay the fees.
Finding of the Court:
The court held that the petitioner was not liable to pay extension fee/non-construction charges for the period spanning from 2001 to 31.12.2007 and/or till a communication of sanctioning of the building plan was sent to him. It also directed the Competent Authority to re-determine the petitioner's liability for non-construction fee for the years 1988 to 2000 and quashed the demand raised for the period from 2001 to 2008, directing the refund of the amount deposited by the petitioner.
Issues: The issues included the petitioner's liability to pay non-construction charges/extension fee, the applicability of relevant rules and decisions of the court, and the authority's actions in levying the fees.
Ratio Decidendi: The court's decision was based on the interpretation of relevant rules, the petitioner's knowledge of the status of the building plan, and the applicability of previous court decisions to the petitioner's case.
Final Decision: The court set aside the levy of non-construction fee/extension fee for the period spanning the year from 1988 to 2000, quashed the demand raised for the period from 2001 to 2008, and directed the refund of the amount deposited by the petitioner.
Surya Kant, J.
Notwithstanding the chequered history of litigation, the only issue that survives for consideration pertains to the petitioner's liability to pay non-construction charges-cum-extension fee for the period spanning from 1988 to 2000 and again from the year 2001 to 2008.
2. The facts may be noticed briefly. Plot No. 105, Phase-2, Urban Estate, SAS Nagar Mohali was allotted to the petitioner vide allotment letter dated 2.7.1971 (Annexure P-1), clause 6 whereof on translation reads as follows:-
“6. After getting the site plan sanctioned from the competent authority, the construction shall be completed within 3 years from the date of issuance of the sanctioned plan.”
3. According to the respondents, the petitioner was not interested in constructing the house, therefore, he did not submit or got the building plan sanctioned and failed to raise construction within three years from the date of allotment. The case of the petitioner on the other hand was that the possession of the plot was not handed over to him for a period of 7 long years after the allotment though he had deposited the entire sale consideration. No construction indeed can be raised unless possession of the plot is handed over to the allottee.
4. Since the respondent-Authority started levying non-construction charges/extension fee from January, 1988 onwards due to non-construction of the house to which the petitioner objected to, inter alia, on the grounds that (a) no such condition was stipulated in the allotment letter dated 2.7.1971 (Annexure P-1); (b) the policy instructions for the levy of non-construction charges were issued subsequently and would not apply to the allotments already made; (c) the Punjab Regional and Town Planning and Development (General) Rules, 1995 etc. also came into force prospectively much after the subject allotment; and that (d) the non-construction charges were not leviable also in view of the two decisions of this Court in CWP No. 13648 of 1998, (Tehal Singh Vs. State of Punjab and others) and CWP No. 18986 of 2001, (Sant Kaur Jabbi and others Vs. State of Punjab).
5. It was in this backdrop that on 9.12.2010, this Court directed the Additional Chief Administrator, GMADA to re-consider the petitioner's liability towards non-construction charges/extension fee, especially in the light of the above cited decisions as also keeping in view the terms and conditions of allotment.
6. Pursuant to those directions GMADA has passed an order dated 14.5.2012 (Annexure P-23) which is also impugned before us by amending the writ petition. However, before we advert to the legality of order dated 14.5.2012 (Annexure P-23), some more facts relevant to resolve the controversy may also be noticed.
7. The petitioner had submitted the building plan on 3.5.2000 but no formal communication regarding the sanctioning or rejecting that building plan was ever sent or received by him. It was on 9.4.2008 that the petitioner was asked to deposit Rs. 1,88,260/- as non-construction fee to enable the Authority to sanction the building plan. The petitioner deposited the said amount under protest and it appears that the authorities subsequently modified the said order holding that “the petitioner was liable to pay the non-construction fee to the tune of Rs. 7,63,581/- up to 31.12.2007.”
8. Thus, in the light of the order passed by this Court on 9.12.2010, directing the GMADA to reconsider the levy of extension fee, the Authorities were required to determine:-
(i) Whether the petitioner was liable to pay non-construction fee for the period from 1988 to 2000?
(ii) Whether the petitioner was liable to pay extension fee for the additional period from 2001 to 31.12.2007?
(iii) Whether the petitioner was entitled to be exempted from payment of the said fee in the light of the decisions of this Court in Tehal Singh and Sant Kaur Jabbi's cases (supra) and as per the terms and conditions of allotment?
9. The respondents have vide order dated 14.5.2012 (Annexure P-23) reite
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