S.MANOHAR SINGH vs State of Punjab

IN response to an advertisement published in the Tribune dated 18.4.1985 for availability of plots of different sizes under the Self Financing Scheme in INdustrial Focal Point, Phase IX, S.A.S. Nagar, Mohali. The complainant applied for allotment of an industrial plot of 1000 sq. yds. alongwith a Bank draft of Rs. 8,000/- as earnest money on 31.5.1985 The application was complete in all respects. On a demand received from the respondent he deposited a further sum of Rs. 16,000/- on 27.9.85 but the respondent found it to be excessive and wanted to refund a sum of Rs. 8,000/- out of it. Thereafter the complainant deposited a sum of Rs. 64,000/- on 9.1.89 and in reply of a demand dated 12.1.87 he also deposited a sum of Rs. 3,892.60 pertaining to interest and thus entire price of Rs. 80,000/- together with interest Rs. 3,892.60 remained deposited and continued as such with the respondent. The respondent vide their letter dated 3.10.90 asked the complainant to give an undertaking to submit approval from the financial institution regarding his project. There had been correspondence inter se the parties and ultimately on 22.9.94 the respondent has demanded price of the land @ Rs. 303.70 p.s.y. The complainant has challenged the demand at the enhanced rate besides demanding physical possession of the plot. The other claim put forward in the present complaint is briefly mentioned as under: (a) Difference of cost of construction material, machinery which will be purchased from the market now. Rs. 4,90,000/-

(b) 18% interest on the amount paid to the Corporation against the plot earmarked in Eltop Complex, Mohali. Rs. 1,24,460/-

(c) Loss of business, harassment, litigation expenses etc. Rs. 10,60,000/-

THE respondent has filed a reply wherein it has been averred that an industrial plot was of course allotted to the complainant on 14.8.85 and the tentative price of the plot was calculated at Rs. 80,000/-. THE receipt of the total price Rs. 80,000/- together with interest Rs. 3,892.60 has been admitted. However it has been averred that since the complainant could not fulfil the conditions, the allotment was cancelled and on 6.3.90, he was asked to execute a pre-receipt and to take the money back from the respondent. THEre had been no harassment from the conduct of the respondent. THE loss, if any, occurred was on account of the dafult of the complainant himself. The application was made on 31.5.85 for the allotment of plot measuring 1000 sq. yds. and the same was allotted on 14.8.85 Annexure C 1. However its number and identity was not specified. Thereafter the respondent wanted undertaking from the complainant that he shall set up the project within six months of the firm allotment of the plot. Any such conditions were never notified in the advertisement Annexure R 1 at the time the complainant deposited 10% of the price. The respondent is not expected to formulate fresh terms and conditions of its choice unilaterally.

It shall be useful to refer to a letter addressed to the complainant on 22.9.94 and it is reproduced as under: "Please refer to your request for allotment of plot in Eltop Phase VIII, SAS Nagar (Mohali). 2. In this connection, I am directed to inform you that the Board of Directors of the Corporation at their 88th meeting held on 16.9.94 have resolved that if you are interested in the allotment of plot, you should pay the prevailing rate of land, which is Rs. 303. 70 paise per sq. yd. The Corporation has already received a sum of Rs.80,000/- and in case you feel interested in the allotment of plot, you may please deposit the difference so that allotment of a plot could be considered in your favour."

This letter of 22.9.94 creates a cause of action because when Sh. J.C. Sharma, General Manager of the respondent was cross-examined here he told that only the area of plot was told to the complainant but not its identity till now. He also told here that in Phase IX, Industrial Focal Point, S.A.S. Nagar, Mohali, the allotment was to be made within three months. Thus it is a case where the complainant completed the deposit long ago by 3.3.87, yet the plot has not been allotted to him. There appears to be no justification for demand of the price @ Rs. 303.70 per sq. yard. The communication dated 22.9.94 creates a cause of action and it cannot be said to be barred by limitation. The complainant is a retired Chief Engineer and his main aim had been to set up an industrial unit mainly for the purpose of his livelihood and he shall be deemed to be a consumer. The conclusion is that the complaint succeeds partly. It is ordered that the respondent shall allot a specific industrial plot of 1000 sq. yds. in Phase VIII Industrial Focal Point, S.A.S. Nagar, Mohali within a period of two months of the receipt of a copy of this judgment on the old rate for which the price has been deposited in entirety. After the physical delivery of the plot the complainant is required to set up a permissible industrial unit and this condition should be fulfilled within one year of the delivery of the possession of the plot. The claim in respect of financial loss enumerated at (a), (b) & (c) above is disallowed in the circumstances of the case. The respondent shall pay as costs Rs. 2,000/-.

ANNOUNCED. The order be communicated to the parties free of charges. Complaint allowed with costs.