Punjab-Haryana High Court
Pankaj Sharma And Ors. vs State Of Haryana And Ors. on 7 August, 2003
Equivalent citations: (2003)135PLR790
Author: Satish Kumar Mittal
Bench: H.S. Bedi, Satish Kumar Mittal
JUDGMENT Satish Kumar Mittal, J.
1. The petitioners purchased plots in New Grain Market Naneola, District Ambala in the auction held on 27.11.2000 and 29.5.2001. The aforesaid auction was held in response to an advertisement (Annexure P13) issued by respondent No. 4, according to which all modern facilities were to be provided in the New Grain Market, Naneola. The allotment letters were issued to the petitioners on 29.6.2001. As per the terms of the auction as well as the allotment letter, 25% amount of the sale consideration was to be deposited at the time of auction and the remaining 75% price of the plot was to be deposited within 30 days from the date of issuance of the allotment letter or in six half yearly instalments with 15% interest. According to the allotment letter, the said interest was to be calculated from the date of issuance of the allotment letter. It was also provided that possession of the plot shall be offered to the allottee within 30 days from the date of issuance of the allotment letter. Further, it was stipulated in the allotment letter that the allottee shall have to construct the building on the plot as per the approved design within a period of two years from the date of issuance of the allotment letter. Thereafter, the allottee was to obtain exten-:ion for construction, which could be allowed only on payment of extension fee as mentioned in the allotment letter.
2. The case of the petitioners is that after the issuance of the allotment letter till today no development work has been carried out in the New Grain Market, Naneola. No facility of sewerage line, water supply line and electricity supply has been provided, in the site plan sanctioned for this Grain Market, cattle sheds, Ghada parking, Post Office, Telephone Exchange and Rest House have been shown to be provided but at the spot nothing has been built. It is the further case of the petitioners that in absence of the aforesaid basic amenities, the petitioners cannot raise construction on the plots as without the aforesaid basic amenities, even it they raise construction, it is not possible to live or run business on the site in the New Grain Market. The petitioners further submitted that the respondents have included in the price of the plots the expenses to be incurred by them for providing the aforesaid facilities, therefore, they are bound to provide these facilities. In spite of the repeated request of the petitioners, the respondents did not care to provide any facility in the New Grain Market, Naneola, but on the other hand they are pressing hard for depositing the instalments upto date with interest and penal interest. Under these circumstances, the present writ petition has been filed by the petitioners seeking directions to the respondents to provide the basic amenities and other facilities in the New Grain Market, Naneola and till such facilities are provided, they are not entitled to charge interest and penal interest from the petitioners.
3. Pursuant to the notice issued, it has been stated by the respondents in their written statement that though all the facilities have not been provided but most of the modern facilities have been provided in the New Grain Market, Naneola. At the time of hearing, the written statement filed by the respondents was found to be vague and this Court vide its order dated 3.3.2003 specifically directed respondent No. 5 to file an affidavit depicting the exact details and particulars in respect of the supply of electricity, water and sewerage to the Mandi in question. In response to the aforesaid direction, Shri K.R. Naidu, Executive Officer cum Secretary, Market Committee, Naneola filed an affidavit dated 4.8.2003 in this Court. In the said affidavit, regarding supply of water, it has been stated that only three hand pumps and a tubewell have been installed in the New Grain Market, Naneola for public use. In addition to that, two water coolers for drinking water have been provided in the market for public use. But it has been mentioned that no provision of water pipe lines and sewerage has been made in the grain market at present. However, the respondents had already deposited a sum of Rs. 18 lacs with the Executive Engineer, Public Health Division, Ambala for execution of the said work. According to this affidavit, these facilities are likely to be completed in the near future. Regarding electric supply, it has been mentioned that the same is available in the Mandi. From the aforesaid affidavit, it is clear that neither the water supply facility nor the sewerage facility is available in the New Grain Market, Naneola. No construction is possible without these facilities. These are the basic amenities, which the respondents should have provided to the allottees before offering the possession of the plots to them. In absence of these basic amenities, the petitioners could neither raise any construction nor could enjoy the plots purchased by them in the public auction. The petitioners have paid 25% amount of the sale consideration at the time of auction and they have also paid one or two instalments subsequently. Normally, liability to pay interest arises only after delivery of the possession of the allotted plot and the possession is to be delivered after completion of development work, at least after providing the basic amenities like water supply, sewerage, electricity and roads. In the instant case, the charging of interest @ 15% per annum on the amount of instalments from the date of issuance of the allotment letter without delivering possession of the plot after making the development is unreasonable, arbitrary and unjustified. The respondent had made a promise in the advertisement (An-nexure P-13) that all the modern facilities will be provided in the New Grain Market, Naneola. On the basis of the said advertisement, the petitioners participated in the auction and purchased the plots at a higher price. While fixing the reserve price of the plots, the respondents have included in it the cost of developments. Now, they cannot delay the development works. They were required to provide the basic facilities, as proposed in their sanctioned plan of the New Grain market within a reasonable period from the date of auction. Now two and half years have expired, but the respondents have not provided the basic facilities like water supply and sewerage supply to the plot holders. In these specific circumstances, we are of the opinion that the respondents are not entitled to charge interest and penal interest from the petitioners on the amount of instalments and non-payment of the instalments in time. In similar circumstances, a Division Bench of this Court in Makhan Lal Dalip Singh etc. v. H.S.A.M.B. and Anr., (Civil Writ Petition No. 4241 of 1992, decided on 5.6.1993) has held that the respondent-Market Committee was not entitled for interest and penal interest from the plot holders till the basic amenities like water supply and sewerage are provided to the plot holders.
4. In view of the aforesaid discussion, we allow this writ petition and direct the respondents to provide water supply and sewerage facilities and other facilities, as mentioned in the sanctioned building plans, to alt the plot holders in the New Grain Market, Naneola, District Ambala, within a period of one year. It is further directed that the respondents would not charge interest and penal interest from the petitioners till the water and sewerage Facilities are provided to them in the New Grain Market. It is also made clear that the petitioners will raise construction on the allotted plots as per the approved design within a period of two years from the date of providing of the water and sewerage facilities in the New Grain Market. However, in the meanwhile the petitioners will continue to pay instalments of the price already fixed without interest. The clause of interest would come into operation after facilities of water supply and sewerage are provided to the petitioners in the New Grain Market. If the petitioners commit any default in making payment of instalments in the aforesaid manner, they will be liable to pay interest on the said default as provided in the allotment letter. Whatever instalments have fallen due till today, the petitioners shall pay the same to the respondents within a period of two months. If any new default in the payment of instalments is committed, the petitioners would be liable to pay interest also. Sd/- H.S. Bedi, J.