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2023 Supreme(P&H) 1567

IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH
Arun Monga, J.
Haryana Urban Development Authority(Now Haryana Shahri Vikas Pradhikaran – HSVP) – Appellant
Versus
Raj Nakra & Anr. – Respondents
CR No. 959 of 2023
Decided On : 21-02-2023

Advocates appeared:
For the Parties :Mr. Pritam Singh Saini, Mr. Sumeet Goel Senior, Advocate, Mr. Achin Gupta, Mr. Samir Rathaur, Mr. Rana Gurtej Singh

Headnote:(A) Haryana Urban Development Authority Act, 1977 - Clause 5 of the allotment letter dated 20.04.1989 - Awards and execution proceedings - Respondents purchased a plot through auction but failed to adhere to payment schedules; hence, possession was resumed. Court found that interest is payable w.e.f. the date of offer of possession, not earlier - Court upheld the lower court's findings regarding liability to pay 10% interest from August 2000, in accordance with prior Supreme Court directive. (Paras 6, 11, 12)

(B) Execution proceedings - Learned Executing Court cannot exceed the decree's scope and must adhere to the original terms of the allotment. (Para 10)

Facts of the case:
Respondents sought execution of payments against an order for possession of a commercial plot, faced appeals regarding interest computations and penalties owing to non-payment.

Findings of Court:
Interest payments must align with the allotment agreement's specified terms, reaffirming prior judgments on the matter.

Issues: Whether the interest was to be imposed prior to the offer of possession and the enforcement of earlier court orders.

Ratio Decidendi: The terms of the allotment letter, stating interest from the date of offer of possession, guide the outcome of the case, ensuring compliance within legal bounds.

Result: Revision petition dismissed; possession to be handed over following payment as per calculations.

Table of Content
1. factual background of case proceedings. (Para 2 , 3)
2. the main controversy revolves around interests on delayed payments. (Para 4 , 5)
3. interpretation of terms related to interest payment in allotment letter. (Para 6 , 7 , 8)
4. court's reasoning on legality of interest claims. (Para 9 , 10 , 11)
5. court's final order regarding payments and possession. (Para 12 , 13 , 14 , 15)

Judgment

Mr. Arun Monga, J. (Oral):- Vide this common order and judgment, above-mentioned two revision petitions are being disposed of, since the issues and facts raised therein are common. For brevity, recitals are taken from CR-959-2023.

2. Revision petition arises out of pending execution proceedings before the learned Additional Civil Judge (Senior Division), Panchkula. Impugned herein is an order dated 15.10.2022 (Annexure P-6), whereby, respondent-decree-holders have been directed to pay Rs.1,28,278/- and petitioner-judgment debtor has been directed to hand over possession of SCO-116, Sector 5, Panchkula, within 7 days.

3. Succinct factual background first, as pleaded in the petition.

3.1. Respondents purchased a commercial plot No.116, Sector 5, Panchkula in an open auction and allotment letter dated 20.04.1989 was issued. However, respondents failed to adhere to the schedule of payment as per allotment letter. Thereafter, site in question was resumed by petitioner vide order dated 30.12.1998. Respondents challenged said resumption order in an appeal before learned Administrator, HUDA, Panchkula. Resumption was set aside vide appellate order dated 26.09.2001. It was ordered that development works should be taken as completed in August-2000 for all intents and purposes and calculation etc. be made accordingly. Aggrieved, respondents filed a revision before learned Financial Commissioner, which was dismissed and respondents were directed to make payment of dues within 30 days from the date of demand, failing which resumption proceedings would revive. Petitioner issued another notice dated 04.09.2002 to respondents. Against said notice, respondents preferred CWP-19098-2002, which was disposed of vide order dated 01.12.2003. Department filed SLP-4517-2004, which was disposed of vide order dated 09.07.2007 modifying order dated 01.12.2003 to the extent that respondents are liable to pay compound interest @ 10% per annum.

3.2 Respondents subsequently filed a civil suit seeking declaration against the petitioner not to recover penalty and challenged the demand raised by the Department, inter alia, on the ground that same is not as per Apex Court order dated 09.07.2007 ibid. Said suit was disposed of vide order dated 08.10.2007 (Annexure P1) holding that “the plaintiff is ordered to make payment from the date of order of possession i.e., August 2000 with interest as per the order of Hon’ble Supreme Court i.e., 10% compound interest along with penalty as per the rules and regulations of the HUDA Act.”

3.3. Both plaintiffs and Department preferred cross appeals before learned Additional District Judge, Panchkula which were dismissed vide judgment/decree dated 24.09.2009 (Annexure P-2) upholding notices dated 04.09.2002 and 09.10.2002 in which demand was raised by the Department. Said judgment/ decree has attained finality having been not challenged further. Instead of depositing the amount calculated by the Department, respondents filed an application for execution of judgment/ decree dated 24.09.2009 (Annexure P-2) before learned Executing Court. Said execution was dismissed vide order dated 01.10.2015 (Annexure P-3) and objections of the Department were accepted. Aggrieved, respondents preferred an appeal before learned Additional District Judge, Panchkula which was allowed vide order dated 08.11.2017 (Annexure P-4) holding that learned Executing Court travelled beyond the decree passed by learned Civil Judge as well as learned Appellate Court and directing learned Executing Court to enforce judgment/ decree dated 08.10.2007 (Annexure P

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