Jammu Development Authority vs S. Paramjeet Singh

JAMMU DEVELOPMENT AUTHORITY APPELLANT(S) VERSUS S. PARAMJEET SINGH & ANR. RESPONDENT(S) WITH CIVIL APPEAL NO. OF 2023 (arising out of SLP(C) No. 9019 of 2023) Civil Appeal @ SLP(C) No. 4050/2023 Leave granted. This appeal by the Jammu Development Authority1 takes exception to the judgment dated 02.12.2022 passed by the High Court of Jammu & Kashmir and Ladakh at Jammu. Respondent no. 1 - S. Paramjeet Singh had participated in a public auction held on 12.04.1999. His bid of Rs.8,30,000/- (Rupees eight lakhs thirty thousand only) for purchase of plot no. 244, Sector 1/Sector 1A, Trikuta Nagar Housing Colony, Jammu2, was accepted. By letter of intent dated 26.05.1999, the JDA had called upon respondent no. 1 - S. Paramjeet Singh to deposit 50% of the Deepak Guglani premium within 30 days from the date of issue of the letter of 1 For short, “JDA”. 2 For short, “Subject Property”. 2 intent, and the balance 50% within 60 days thereafter. In case of default beyond six months, interest at the rate of 18% per annum would be charged. Further, on failure, the allotment shall be cancelled, and the earnest money and the first installment shall stand forfeited. Respondent no. 1 - S. Paramjeet Singh deposited 50% of the premium of Rs.4,15,000/- (Rupees four lakhs fifteen thousand only) within 30 days after issue of the letter of intent dated 26.05.1999. He did not pay the balance 50% of the premium. It is the case of the appellant – JDA that a number of letters were written to Respondent no. 1 - S. Paramjeet Singh to pay the second installment/balance payment, to which Respondent no. 1 - S. Paramjeet Singh did not respond. Respondent no. 1 - S. Paramjeet Singh denies having received these letters/communications. We have, however, one letter written by Respondent no. 1 - S. Paramjeet Singh, dated 23.05.2001, which refers to the communication dated 02.05.20013, wherein he was asked to make the balance payment of 50% of the premium. Balance 50% of the premium amount was not deposited till 2010.Earlier JDA had cancelled the allotment. Accordingly, the appellant – JDA issued an advertisement on 09.12.2010 for a fresh auction, which was published/advertised on 11.12.2010 in newspapers. Immediately thereupon, Respondent no. 1 - S. Paramjeet Singh filed Original Writ Petition (OWP) no. 1483/2010 before the High Court in December 2010. The appellant – JDA had conducted the fresh auction and had 3 Letter No. JDA/T.N. 244/114 dated 02.05.2001. 3 received a bid of Rs.38,00,000/- (Rupees thirty eight lakhs only) from respondent no. 2 – Vivek Mahajan. In view of the aforesaid facts, we fail to understand how Original Writ Petition (OWP) no. 1483/2010 was allowed and LPA No. 58/2022 filed by the JDA was dismissed, with the observation that the allotment in favour of Respondent no. 1 - S. Paramjeet Singh survives and should be acted upon. The defaults and failure to pay the consideration on the part of Respondent no. 1 - S. Paramjeet Singh are apparent and do not even warrant elucidation. Original Writ Petition (OWP) no. 1483/2010 preferred by S. Paramjeet Singh should have been dismissed. It is pointed out to us that respondent no. 2 – Vivek Mahajan had deposited an earnest money of Rs.2,71,000/- (Rupees two lakhs seventy one thousand only). The balance money has not been paid. We are also of the opinion that given the time lapse, the plot should be re-auctioned. To balance out the equities, we direct that respondent no. 2 – Vivek Mahajan will be refunded Rs.2,71,000/- (Rupees two lakhs seventy one thousand only) along with simple interest at the rate of 15% per annum. Earnest money paid by the respondent no. 1 - S. Parmjeet Singh will be forfeited and will not be refunded. Rs.4,15,000/- (Rupees four lakhs fifteen thousand only), less the earnest money deposited by Respondent no. 1 - S. Paramjeet Singh, will be refunded to him with simple interest at the rate of 8% per annum with effect from 01.01.2001. The impugned judgment is set aside and the appeal is allowed 4 and disposed of in the above terms. Pending application(s), if any, shall stand disposed of. Civil Appeal @ SLP(C) No. 9019 of 2023 Leave granted. The appeal is disposed of in terms of the order passed today in civil appeal arising out of SLP(C) no. 4050/2023. Pending application(s), if any, shall stand disposed of. .................J. (SANJIV KHANNA) .................J. (S.V.N. BHATTI) NEW DELHI; OCTOBER 13, 2023.