The power of resumption under the Chandigarh Lease Hold of Sites and Building Rules, 1973 should be used as a last resort to ensure planned and regulated urbanization.

JUDGMENT

Tejinder Singh Dhindsa, J. - Plot No.1574, Sector 38-B, Chandigarh measuring 633.75 sq. yards was allotted to the petitioners on lease hold basis for a period of 99 years in an open auction held on 11.07.1985.

2. Vide order dated 28.03.2007 (Annexure P-11) passed by the 3rd respondent i.e. Estate Officer, U.T. Chandigarh, lease of the plot was cancelled and forfeiture of 10% of the premium, ground rent, interest etc. was also directed. The order of cancellation of the lease stands affirmed by the appellate and revisional authorities vide orders dated 02.12.2008 (Annexure P-14) and 18.03.2009 (Annexure P-16).

3. Instant petition has been filed assailing the afore noticed three orders at Annexures P-11, P-14 and P-16.

4. Learned senior counsel submits that the action of cancellation of the lease of the plot in question is on the premise that the petitioners did not construct thereupon within three years from the date of auction. It is contended that the respondent/authorities overlooked the vital fact that actual physical possession of the plot had been handed over to the petitioners only on 01.09.1992 and as such, no construction could have been effected prior to that date. The documents appended as Annexures P-5 to P-9 have been adverted to, to assert that the administration itself was not sure about the actual amount payable by the petitioners towards extension fee on account of non-construction. The amount demanded kept varying without any explanation being offered and inspite of the office of the 3rd respondent having been visited on numerous occasions to get clarity in the matter but no details were furnished. It was then argued by learned senior counsel that the notification dated 24.08.2007 (Annexure P-13) had been issued, notifying the Chandigarh Lease Hold and Sites and Buildings (Amendment Rules, 2007) and amending Rule 16 thereof to grant further time to allottees to raise construction on the sites allotted to them and the benefit of such amended Rule has been arbitrarily denied to the petitioners. It is argued that had the respondents taken a sympathetic view and granted reasonable time to the petitioners to raise construction on the plot in view of amended Rule 16, they would have adhered to the same and completed the construction within the extended time so granted. Much emphasis has been placed on the plea that resumption of the property of a citizen ought to be resorted to only as a last recourse. The power of resumption under the Rules should be used sparingly by the authorities as resumption is a drastic measure and should be resorted to only when there is a flagrant violation of the condition of lease. In support of such contention, reliance has been placed upon judgment of the Hon'ble Supreme Court of India in Teri Oat Estates (P) Ltd Vs. U.T. Chandigarh and others, 2004 (2) SCC 130; a Full Bench decision of this Court in Shri Ram Puri Vs. the Chief Commissioner, Chandigarh, 1982 (PLR) 388 and a Division Bench judgment of this Court in M/s James Hotels Limited Vs. U.T. Chandigarh, 2009 (2) PLR 454.

5. Yet another submission raised is that the impugned order of cancellation of lease has been passed without giving any proper opportunity of hearing to the petitioners and as such, on such ground alone, the action cannot sustain.

6. Per contra, learned counsel representing U.T. Chandigarh submits that as per Clause(s) 12 and 22 of the Terms and Conditions of the allotment letter at Annexure P-1, construction on the plot was required to be completed within a period of three years from the date of auction in accordance with the Punjab Capital (Development and Regulation) Building Rules, 1952 as well as the provisions of the Frame Control and Architectural Control and the Zoning Plan (wherever applicable). Since petitioners did not construct within the prescribed/extended time, show cause notice dated 27.04.2006 under Rule 20 of the Chandigarh Lease Hold of Sites and Building Rules, 1973 (hereinafter to be referr