JUDGMENT

Mr. Harinder Singh Sidhu, J.

This petition has been filed for quashing the orders: Annexure P-2 dated 12.08.2009, P-4 dated 18.05.2010 and P-6 dated 10.07.2013 pertaining to cancellation of lease of built up booth No.155, Sector 20-C, Chandigarh on the ground of non-execution of lease deed.

2. The petitioner was allotted built up booth No.155, Sector 20-C, Chandigarh on lease hold basis for 99 years vide allotment letter dated 03.02.1997 (Annexure P-1) under the rehabilitation scheme known as "Allotment/Transfer of built up Booths in any Sector on Lease/Hire Purchase basis in Chandigarh Rules, 1991".

3. As per the allotment letter, the allotment was to be governed by the provisions of 'Capital of Punjab (Development and Regulation) Act,1952' and the Rules made thereunder and the provisions of 'Chandigarh Lease Hold of Sites and Building Rules, 1973' (herein for short 1973 Rules')

4. The allotment was made on total premium of Rs.71,000/-. This amount included the cost of land amounting to Rs.30,000/- and the cost of structure amounting to Rs.41,000/-.

5. 50% of the cost of the structure i.e. Rs.20,500/- was to be paid within 10 days of the issue of the allotment letter. The remaining 50% was to be paid in two annual equated instalments along with interest i.e., Rs. 13,094/-. 25% of the cost of land i.e. Rs.7500/- was to be deposited within 30 days of the issue of allotment letter. The remaining 75% was to be paid in three annual equated instalments along with interest i.e. Rs.10,019/- each. In addition to the premium the annual ground rent that was payable was also specified in the allotment letter.

6. As per clause no.8 of the allotment letter the petitioner allottee was required to execute a lease deed after the expiry of one month from the date of allotment in such manner as may be directed by the Estate Officer.

7. It is the case of the petitioner that after the allotment of booth the petitioner started running his business of ready-made garments in it and he continued paying all the instalments of premium along with interest.

8. As per Rule 14 (1) of the 1973 Rules after payment of 25% of the premium the lessee is required to execute lease deed in such manner as may be directed by the Estate Officer within six months of the date of allotment or such further period as the Estate Officer may for good and sufficient reasons allow. Failure to execute the lease deed attracts the penal provisions contained in Rule 14(2) of the said rules. Rule 14 is as under:

"Rule14(1):-Execution of lease deed.- (1) After payment of 25 per cent premium the lessee shall execute a lease deed in [Form B, B-I, B-II or C] as the case may be, in such manner as may be directed by the Estate Officer within six months of the date of allotment/auction or within such further period as the Estate Officer may, for good and sufficient reasons, allow.

Rule14(2):- If the lessee fails to execute a lease deed in accordance with sub-rule (1) of this rule, the Estate Officer may cancel the lease and forfeit a sum up to 25 per cent of the premium:

Provided that before taking action under sub-rule (2) of this rule, the Estate Officer shall afford a reasonable opportunity to the lessee of being heard."

9. As the petitioner/lessee failed to execute the lease deed within the aforesaid period, show-cause notice dated 05-09-2002 was issued to him by the respondent No.3- Estate Officer, U.T. Chandigarh as per provisions contained in Capital of Punjab (Development and Regulation) (Service of Notices) Rules,1974.

10. It is contended on behalf of the petit