M/s Sargam Exports Limited vs Haryana Urban Development Authority and another

Hemant Gupta, J.—The petitioner has sought refund of the amount, as price of the plot allotted, deposited by the petitioner along with interest at the rate of 18% per annum.

The petitioner responded to an advertisement inviting applications for sale of Industrial Plots in Sector 37, Gurgaon. In terms of the said advertisement, the petitioner applied for a plot measuring 2100 Sq. meters vide application dated 05.12.1997 along with demand draft of Rs. 6,27,900/-. The petitioner was successful in draw of lots and a provisional letter of allotment was issued on 16.10.1998 allotting Industrial Plot No. 712 P, Sector 37, Gurgaon at the rate of Rs. 3289/- per square meter. The petitioner was required to deposit another sum of Rs. 10,98,825/- within 30 days to complete 25% of the tentative price of the plot and the balance 75% i.e. Rs. 51,80,175/- could be paid in lump sum without any interest or in installments with 15% interest per annum. The petitioner deposited Rs. 69,06,900/- by 08.01.1999 and thus, complied with the conditions of deposit of the sale consideration.

The grievance of the petitioner is that the respondents did not hand over physical possession of the plot, which is evident from the communications Annexure P-4 to P-7. The petitioner was informed on 12.03.2004 that the provisional letter of allotment stands withdrawn vide memo dated 27.11.2000 and hence, no physical possession could be given to the petitioner. Thereafter, the petitioner invoked the writ jurisdiction of this Court on 28.11.2004.

The petitioner has raised following argument on 10.01.2005:-

Contends that even through the allotment of the plot has been cancelled, the petitioner has not been refunded the amount deposited by it.

Notice of motion to this limited extent for 29.04.2005.

In pursuance of the said order, an amount of Rs. 65,61,555/- has been refunded to the petitioner vide cheque dated 28.07.2005. In these circumstances, the only question which arises is, whether the petitioner is entitled to any interest on the amount of Rs. 65,00,000/-, which remained with the respondents from 27.11.2000 till 28.07.2005.

Mr. Gaur has produced a communication dated 27.11.2000, wherein it was decided to withdraw provisional letter of allotment with immediate effect and 5% of the price was ordered to be forfeited with liberty to the petitioner to seek refund of the remaining amount. Mr. Gaur has also produced the dispatch register pointing out that the said amount was sent under the speed post to the petitioner on 27.11.2000 itself.

We have heard learned counsel for the parties and found that the action of the respondents in forfeiting 5% of the amount cannot be said to be illegal nor can be permitted to be disputed at this stage. The question is, whether the respondents were bound to refund the remaining amount along with letter dated 27.11.2000.

The argument raised by Mr. Gaur is that the liberty was granted to the petitioner to seek refund of the amount, therefore, there was no obligation with the respondents to return the said amount suo motu.

We find that the stand of the respondents in not refunding the amount is not sustainable. Once 5% of the amount was forfeited, there was nothing to stop the respondents to refund the remaining amount. The respondents have no claim or title over the remaining amount. The petitioner has been deprived of the said amount for almost five years, when the same was refunded on 28.07.2005. Since the petitioner has been deprived of the amount and the respondents have used the said amount, the petitioner is entitled to interest on the said amount.

Therefore, we direct the respondents to refund the said amount along with interest at the rate of 10% in terms of the judgment of Hon''ble Supreme Court in case AIR 2002 SC 2380 the rate of interest charged by the HUDA in the cases of payment of the amount to it. Such direction is subject to the determination of the rate of interest, which can be charged, pending consideration before this Court in LPA No. 131 of 2010. Necessary refund be made within one month.

Disposed of accordingly.