1999 JTR(SC) 80
1999 AIR(SC) 2189 ; 1999 AIR(SCW) 2209 ; 2000 3 ICC 354 ; 1999 9 JT 202 ; 1999 1 PLJ 530 ; 1999 2 RCR(Civ) 255 ; 2000 1 RentLR 1 ; 1999 9 SCC 22 ; 1999 KHC 1678
SUPREME COURT OF INDIA
Dr. A.S. Anand, CJI., V.N. KHARE AND N. SANTOSH HEGDE, JJ.
Jasbir Kaur, Appellant
Versus
U.T., Chandigarh and others, Respondents.
Civil Appeal No. 342 of 1999 (arising out of S. L. P. (Civil) No. 7901 of 1998), D/- 25-1-1999.
A court may regularize a lease allotment and set aside a cancellation order based on payment default if the lessee subsequently clears all outstanding dues, including interest and penalties, as per the official statement of account.
Act
Referred
:CONSTITUTION OF INDIA
: Art.136
(A) Lease Cancellation - Default in payment - Regularisation of allotment - Cancellation of lease for a site due to default in payment of a part of an instalment - Subsequent payment of the total amount due, including interest and penalty, as per the statement of account furnished by the administration - Where the payment of the outstanding amount is not disputed, it is appropriate to direct the regularisation of the allotment and set aside the cancellation order. (Para 4)
Facts of the case:
The lease of a site was cancelled by the authority due to default in payment of a part of the third instalment. The appellant challenged the cancellation and the subsequent dismissal of the appeal. During the pendency of the appeal, the court permitted the appellant to deposit the balance amount along with interest and penalty. The appellant subsequently paid the total amount as per the statement of account provided by the administration.
Findings of Court:
The court noted that the payment of the total amount due, including interest and penalty, as per the statement of account furnished by the administration, was not disputed by the respondents.
Issues: Whether the allotment of the site should be regularised and the cancellation of the lease set aside following the payment of all outstanding dues.
Ratio Decidendi: Upon the payment of the full amount due, including interest and penalty, the court found it appropriate to regularise the allotment of the site in favour of the appellant and consequently set aside the order of cancellation.
Result: Appeal allowed.
Facts of the case:
The lease of a site was cancelled by the authority due to default in payment of a part of the third instalment. The appellant challenged the cancellation and the subsequent dismissal of the appeal. During the pendency of the appeal, the court permitted the appellant to deposit the balance amount along with interest and penalty. The appellant subsequently paid the total amount as per the statement of account provided by the administration.
Findings of Court:
The court noted that the payment of the total amount due, including interest and penalty, as per the statement of account furnished by the administration, was not disputed by the respondents.
Issues: Whether the allotment of the site should be regularised and the cancellation of the lease set aside following the payment of all outstanding dues.
Ratio Decidendi: Upon the payment of the full amount due, including interest and penalty, the court found it appropriate to regularise the allotment of the site in favour of the appellant and consequently set aside the order of cancellation.
Result: Appeal allowed.
JUDGMENT :- Leave granted.
2. The controversy in this appeal centres around cancellation of lease relating to Booth Site No. 407, Sector 44 C & D by the Estate Officer vide order dated 8th May, 1992, for default in payment of a part of the third instalment of the lease amount. On 29th May 1997, the writ petition filed by the appellant against the dismissal of his appeal by the Chief Administration was dismissed by the High Court. The order of the High Court has been put in issue through this appeal.
3. At the stage when notice was issued in this appeal, a direction was given on 8th May, 1998 restraining the re-auction of the site in question and the appellant herein was permitted to deposit the balance amount along with interest, penalty etc., without prejudice to the rights of the parties. Six weeks time was granted to the appellant to do the needful. Learned counsel for the appellant submits that the total amount of the instalment as due together with interest, penalty etc. as per the statement of account furnished by the Estate Department to the appellant as on 30th June, 1998, was Rs. 3,45,185/- (although the amount which was required to be paid within three weeks on 15th December, 1992 was only Rs. 1,28,000/-). It is submitted by learned counsel for the appellant that the amount of Rs. 3,45,185/- has since been paid to the Estate Officer. The payment of an amount of Rs. 3,45,185/- in accordance with the statement of account furnished by the Chandigarh Administration, by the appellant to the respondent, is not disputed by learned counsel for the respondents.
4. After hearing learned counsel for the parties but without expressing any opinion on the question of law as raised in this appeal, it appears appropriate to us now to direct the regularisation of the allotment of the site in favour of the appellant. Let the needful be done by the Chandigarh Administration within four weeks. The order of cancellation of lease is, as a consequence, set aside.
5. The impugned order is, therefore, set aside and this appeal is allowed. No costs.
Appeal allowed.