Mr. Syed Ahmed Shah Hussaini vs The Commissioner, Karnataka Housing Board and The Assistant Executive Engineer, Karnataka Housing Board

Ashok B. Hinchigeri, J.—The Petitioner has raised the challenge to the notice, dated 13.10.2010 (Annexure-C) and the order, dated 21/23.10.2010 (Annexure-E) issued by the Respondents.

The facts of the case in brief are that the Petitioner was allotted site No. 663/ODD measuring 15.1 x 26 sq.ft., HIG - II Class for a consideration of Rs. 23,24,271/- on 9.9.2009. As per the terms of allotment, the Petitioner was required to pay the entire allotment consideration on or before 25.1.2010. The Petitioner had paid only Rs. 9,85,000/-. The Respondents, in all fairness, extended the time for making the balance payment. In this regard, they issued the notices, dated 23.3.2010 and 13.10.2010. As the Petitioner defaulted in making the balance allotment consideration even within the extended time, the Respondents were constrained to cancel the allotment forfeiting 25% of the amounts.

Sri R. Kothwal, the learned Counsel for the Petitioner submits that the Petitioner could not arrange all the funds on account of his pre-occupations in Agumbe Forest, which is a naxal affected area. To show the bonafides of the Petitioner, he has filed a memo undertaking to pay interest at 18% on the delayed payments.

Sri R.A. Kulkarni, the learned Counsel for the Respondents submits that the Petitioner did not adhere to the prescribed payment schedule at all. Even when the Respondents extended the time for making the balance payment by nearly nine months, the Petitioner did not clear the amounts. He has also relied on this Court''s decision in the case of Ashok K. Babu Vs. State of Karnataka, to advance the contentions that, if an allottee defaults in making the payments on schedule, the Respondents may pass the cancellation order without issuing the show cause notice and without hearing the allottee.

I have gone through the terms of allotment contained in the allotment letter, dated 9.9.2009 (Annexure-R1). Clause 4 of the allotment order states that if an allottee defaults in paying the entire allotment consideration in the prescribed four equal instalments, the allotment is liable to be cancelled without issuing any notice. However, the last part of the said clause provides for levying of interest on those who make the late payments.

In the peculiar factual matrix of this case, it is desirable to invoke the second part of Clause 4. The same is appreciating that:

a) the Petitioner was pre-occupied with his duties in Agumbe Forest, a naxal affected area.

b) the Petitioner has already paid Rs. 9,85,000/-.

c) the Petitioner has come forward to pay interest at 18% on delayed payments.

Considering all these aspects of the matter, the ends of justice would be met by quashing the impugned notice and order and putting the Petitioner on following terms:

i) The Petitioner shall pay the remaining allotment consideration within eight weeks.

ii) He shall also pay interest at 18% for the period of delay.

iii) If the Petitioner fails to pay the allotment consideration and/or interest within two months from today, the allotment stands cancelled.

iv) It is made clear that the Petitioner is not entitled to seek further extension of time for making the payment.

This petition is accordingly disposed of No order as to costs.