Judgment :

Dr. Mukundakam Sharma, J.

1. The issue that falls for our consideration in this appeal is in respect of a demand of Rs. 61,000/-per gross acre, raised by the second respondent towards the external development charges but actually on account of construction of internal community buildings, with a further stipulation that no such charge would be realised from the plot holders.

2. Theappellant has challenged the said demand of the second respondent as unlawful being contrary to the statutory provisions pertaining to the construction of internal community buildings, which only mandates transfer of land free of cost to the Government, if the Government so desires, but without providing for any amount chargeable from the licensee to the Government for the construction of these internal community buildings.

3. These challenges are made by way of filing the present appeal which is filed against the judgment and order of the Division Bench of the Punjab and Haryana High Court dated 29.07.1999 whereby the writ petition filed by the appellant was dismissed.

4. Appellant is a public limited company registered and incorporated under the Companies Act, 1956 and is into the business of real estate development and development of colonies. Since 1983, the appellant Company had been granted licenses by the Director, Town and Country Planning (for short "Director") being respondent No. 2 herein under the provisions of Haryana Development and Regulation of Urban Areas Act, 1975 (for short the "Act") and Haryana Development and Regulation of Urban Areas Rules, 1976 (for short the "Rules") for setting up colonies in the District Gurgaon, Haryana. For the said purpose, agreements were entered into from time to time between the appellant Company and respondent No. 2 in the prescribed form i.e. LC-IV, under Rule 11 of the Rules. The said licenses were renewed from time to time.

5. As per clause 1 of the Licence Agreement, the licensee is required to fulfil the conditions laid down in Rule 11 of the Rules. However, before we go into the various terms and conditions of the licence, we think it to be useful to refer to and extract some of the relevant provisions of the Act read with the Rules. The said Act and Rules were framed to regulate the use of the land, in order to prevent ill planned urbanization in or around the towns in the State of Haryana and the same inter alia governs the grant of licence for colonizing upon terms set out in the licence agreement, which is given in the statutory form namely Form LC-IV.

The relevant provisions of the Act are quoted hereunder:-

"S.2. Definition. In this Act, unless the context otherwise requires:

.....................

(g) "external development works" include sewerage, drains, roads and electrical works which may have to executed in the periphery of, or outside, a colony for the joint benefit of two or more colonies:

(i) "internal development works" mean - metaling of roads and paving of footpaths;

(ii) turfing and plantation with trees as open spaces;

(iii) street lighting;

(iv) adequate and wholesome water-supply;

(v) sewers and drains both for storm and sullage water and necessary provision for their treatment and disposal; and

(vi) any other work that the Director may think necessary in the interest of proper development of a colony.

Section 3. Application for licence. (1) Any owner desiring to convert his land into a colony, shall, unless exempted under section 9, make an application, to the Director, for the grant of a licence to develop a colony in the prescribed form and pay for it such fee as may be prescribed. The application shall be accompanied by an income-tax clearance certificate.

(2)..........

(3) After the enquiry under sub-section (2), the Director by an order in writing, shall –

(a) grant, a licence in the prescribed form, after the applicant has furnished to the Director a bank guarantee equal to twenty five per centum of the estimated cost of development works as certified by the