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2016 Supreme(P&H) 664

IN THE HIGH COURT OF PUNJAB AND HARYANA
[DIVISION BENCH]
Before
The Hon’ble Mr. Acting Chief Justice S.J. Vazifdar
The Hon’ble Mr. Justice Arun Palli
CWP No. 16696 of 2015
Krishan Kumar
v.
State of Haryana & Ors.
{Decided on 05/04/2016}

Advocates:
For the Petitioner:Mr. Suman Jain, Advocate.
For the Respondent: Mr. Rahul Dev Singh, DAG, Haryana and Mr. Deepak Balyan, Addl. AG, Haryana.

Headnote:(A) Allotment of Plot--Surrender of Plot--Calculation of interest--As per surrender policy, 10% of bid amount was to be forfeited and interest on overdue amount was to be deducted--Allottee made all payments on time upto 3rd installment and before due date of 4th installment filed an application for surrender of plot--Therefore, there was no over-due amount and no interest thereon was not be deducted--Impugned demand with interest by development authority set aside.

       (B) Allotment of Plot--Surrender of Plot--Ground Rent--As per surrender policy only 10% of bid amount was to be forfeited--Ground rent deducted by development authority directed to be refunded with interest.

       

JUDGMENT

Mr. Arun Palli J.:- A writ of mandamus is prayed for directing the respondents to release a sum of Rs.1,60,000/- along with interest @ 15% per annum w.e.f. 01.06.2015 till its realization. Further, an interest @ 15% per annum be also awarded on Rs.62,48,000/- w.e.f. 01.06.2015 till 06.08.2015.

2. Briefly, the case set out in the petition is that the petitioner was allotted SCO No.6/GF+FF in the Housing Board Colony, Bhiwani, on 25.06.2013, in an open auction, for a consideration of Rs.1,20,20,000/-. 25% of the bid amount i.e. Rs.30,05,000/- was deposited by the petitioner at the time of auction itself. And in terms of clause 3 of the letter of allotment, dated 19.08.2013 (Annexure P/1), he also deposited 15% of the sale consideration i.e. Rs.18,03,000/-. Petitioner opted to pay the balance sale consideration in ten equal half yearly installments, of Rs.9,33,999/- each inclusive of 10% interest. And Rs.76,10,000/- till 01.05.2015, he had paid. The respondent-Board, vide resolution dated 12.02.1985 (Annexure P4), adopted the policy formulated by Haryana Urban Development Authority (HUDA), regarding surrender of commercial sites/buildings sold by auction. And, in terms thereof, the allottee was free to surrender a commercial site/building on forfeiture of 10% of the total bid amount. Plus, the bidder was required to pay interest on every over-due installment to the Board. Accordingly, the petitioner vide an application, dated 01.05.2015 (Annexure P5), appended with the other requisite documents, surrendered the allotted SCO. As a result, the Head office finalized the refund sheet for a sum of Rs.62,48,000/-, for out of the total amount deposited by the petitioner i.e. Rs.76,10,000/-, Rs.12,02,000/- were forfeited being 10% of the bid amount and Rs.1,60,000/- was also deducted as rent charges. Though, there was hardly any basis there for. Be that as it may, even Rs.62,48,000/-, was not released for a period of 2½ months. And eventually, the Board, vide a cheque dated 07.08.2015, refunded the said amount to the petitioner. That is how, as indicated above, the petitioner is before this court to seek refund of Rs.1,60,000/-, with interest, that were deducted on account of rent charges.

3. As set out in the written statement, filed on behalf of respondents No.1 to 3, itself the issue as regards deduction of Rs.1,60,000/- on account of rent charges purports to have been reconsidered, during the pendency of the writ petition, and it is conceded that the said amount was wrongly deducted, for the surrender policy did not postulate any such deduction. However, it is maintained that the Board was entitled to deduct Rs.11,74,284/- from the amount deposited by the petitioner, for the allottee was liable to pay interest on over-due installments. Therefore, after adjusting a sum of Rs.1,60,000/- that was wrongly deducted on account of rent charges, the petitioner was rather liable to pay Rs.10,14,284/-, as reflected in the calculation sheet (Annexure R/1), which reads thus:

Calculation of Interest on due installments in respect of SCO No. 6 HBC Dadri Gate Bhiwani surrendered by the allottee on dt. 01.05.2015 as per policy of Housing Board Haryana.

Auction price of the SCO   =   Rs.12020000/-

Less:- 40% amount received before possession    =   Rs. 4808000/-

     Rs. 7212000/-

Add:- interest w.e.f. 25.06.2013 to 29.12.2013        =   Rs. 371467/-

(188 days) @ 10%             Rs. 7583467/-

Less:- amount received on 30.12.2013    =   Rs. 940000/-

     Rs. 6643467/-

Add:- interest w.e.f. 30.12.2013 to 03.06.2014         = Rs. 283940/-

(156 days) @ 10%      ________________

     Rs. 6927407/-

Less:- amount received on 04.06.2014    =   Rs. 925000/-

     Rs. 6002407/-

Add:- interest w.e.f. 04.06.2014 to 06.06.2014        =   Rs. 4933/-

(3 days) @ 10%   ________________

     Rs. 6007340/-

Less:- amount received on 07.06.2014    =   Rs. 3000/-

     Rs. 600













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