CHANDIGARH ADMINISTRATION ANDversusHARI RAM

                                          1
                         [2019] 11 S.C.R. 57                            57


      CHANDIGARH ADMINISTRATION AND OTHERS                              A
                                 v.
                            HARI RAM
                  (Civil Appeal No. 6123 of 2019)
                         AUGUST 06, 2019                                B
         [R. BANUMATHI AND A. S. BOPANNA, JJ.]
       Public Premises (Eviction of unauthorised occupants) Act,
1971 – s.5(1) – Eviction of unauthorised occupants – Respondent
was allotted a booth by appellant-administration for a total premium
                                                                        C
of Rs.70,500/- on lease basis in the year 1996 – Respondent made
initial payment and possession was handed over to him – However,
respondent did not pay first, second and third installments –
Consequently, lease granted in favour of the respondent was
cancelled – Aggrieved, respondent preferred appeal before the Chief
Administrator – Meanwhile, the Estate officer passed eviction order     D
against the respondent – However, Appellate Authority set aside
the eviction order – Appeal preferred before the Chief Administrator
challenging the cancellation of lease was dismissed – Revision filed
against the order of the Chief Administrator was also dismissed –
Writ petition – High Court granted a further opportunity to the
respondent to pay the outstanding dues since he had already paid        E
an amount of Rs.1,02,000/- and had also deposited Rs.40,000/- in
the High Court – On appeal, held: The respondent was given as
many as twenty-six opportunities, but he failed to deposit the dues
– When the respondent has consistently defaulted in payment of
premium/installments, it is open to the competent authority to take     F
action in accordance with law – Since the allotment of the respondent
was of the year 1996 and considering the fact that the respondent
already deposited an amount of Rs.1,02,000/- it would not be
appropriate to direct the respondent to pay the current market value
of booth – In order to maintain balance between the interest of the
appellant-administration and also the interest of respondent-allottee   G
and in the interest of justice, it would be appropriate to adopt the
value of the booth as in the year 2010 i.e. Rs.12,77,950/- –
Respondent has already paid an amount of Rs.2,72,969/- which is
inclusive of property tax – However, property tax paid by him cannot
be adjusted – Therefore, respondent directed to pay the said amount
                                                                        H
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58            SUPREME COURT REPORTS                      [2019] 11 S.C.R.


A    of Rs.12,77,950/- less Rs.2,52,000/- (amount already paid by the
     respondent) within six months – On failure to deposit the said
     amount, the appellant-administration to proceed for eviction in
     accordance with law.
           Allowing the appeal, the Court
B
             HELD: 1. In the present case, after the allotment, the
     respondent has paid only the initial payment and has not paid the
     first, second and third instalments and the ground rent which fell
     due on 25.12.1997, 21.12.1998 and 25.12.1999 and inspite of
     several opportunities, respondent has not paid the amount. When
C    the respondent has consistently defaulted in payment of the
     premium/instalments, it is open to the competent authority to
     take action in accordance with the law. When the value is stated
     to be above Rs.26 lakhs in the year 2015, the appellant
     Administration cannot be asked to part with the land at the same
D    rate as in the year 1996. Without keeping in view of the default
     committed by the respondent, the High Court was not right in
     setting aside the order of cancellation of allotment and directing
     the respondent to receive the outstanding dues. Since the
     allotment was made way back in 1996, the respondent cannot
     insist upon the payment of the then market value in the year
E
     1996. [Para 10] [62-F-H]
           2. As on the date of impugned order of the High Court, the
     respondent has paid only an amount of Rs.1,02,000/-. As seen
     from the order of the Chief Administrator, despite the statement
F    made before the Estate Officer that the respondent is ready to
     deposit the balance, the amount has not been paid. In compliance
     of the order of this Court dated 26.03.2019, the respondent is
     said to have deposited Rs.1,50,000/- with the Chandigarh
     Administration. On direction from this Court, the counsel
     appearing for the appellant has filed an affidavit stating that as on
G    31.08.2015, an amount of Rs.1,91,114/- on account of ground rent
     and interest and a sum of Rs.2,735/- on account of service tax
     are due. In the affidavit filed on 19.08.2015, it is stated that as on
     the date, as per the collector rate, current market value of the
     booth is Rs.26,35,772/- plus Rs.48,576/- (construction charges)
H    and the total is Rs.26,84,348/-. On further direction from this
     CHANDIGARH ADMINISTRATION AND OTHERS v.                           59
                   HARI RAM

Court, the counsel appearing for the Chandigarh Administration         A
has submitted that as on 2010, the then current market value of
the booth was Rs.12,77,950/-. [Para 11] [63-A-C]
       3. Since the allotment of the respondent was of the year
1996 and considering the fact that the respondent has already
deposited an amount of Rs.1,02,000/-, it would not be appropriate      B
to direct the respondent to pay the current market value of the
booth. In order to maintain balance between the interest of the
appellant Administration and also the interest of the respondent-
allottee and in the interest of justice, it would be appropriate to
adopt the value of the booth as in 2010. Considering the facts
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and circumstances of the case and also the fact that the respondent
has already deposited an amount of Rs.1,02,000/-, it is appropriate
to direct the respondent to pay the then market value of the booth
as of 2010 i.e. Rs.12,77,950/-. The counsel appearing for the
respondent has submitted that the respondent has so far paid an
amount of Rs.2,72,969/- which is inclusive of the property tax.        D
Since the respondent claims to have been in enjoyment of the
booth over the years, the property tax paid by him cannot be
adjusted against the amount payable by the respondent.
The amount of Rs.10,25,950/- (that is Rs.12,77,950/- less
Rs.2,52,000/- amount already paid by the respondent) is payable
                                                                       E
by the respondent. [Para 12] [63-D-G]
      Teri Oat Estates (P) Ltd. v. U.T., Chandigarh and Others
      (2004) 2 SCC 130 : [2003] 6 Suppl. SCR 1235 -
      referred to.
                      Case Law Reference                               F
[2003] 6 Suppl. SCR 1235              referred to          Para 9
      CIVIL APPELLATE JURISDICTION : Civil Appeal No. 6123
of 2019.
      From the Judgment and Order dated 26.07.2012 of the High         G
Court of Punjab and Haryana at Chandigarh in C.W.P. No. 19200 of
2008.
      M. S. Doabia, Sudarshan Singh Rawat, Advs. for the Appellants.
     Dinesh Verma, Rajat Sharma, S. L. Aneja, Advs. for the
Respondent.                                                            H
60             SUPREME COURT REPORTS                          [2019] 11 S.C.R.


A          The Judgment of the Court was delivered by
           R. BANUMATHI, J.
           1. Leave granted.
            2. This appeal arises out of the order dated 26.07.2012 passed by
B    the High Court of Punjab and Haryana in CWP No.19200 of 2008 in and
     by which the High Court has set aside the order of eviction passed
     against the appellant and directing the amount of Rs.40,000/- deposited
     by him be returned to the respondent so as to enable him to use the
     amount in paying the outstanding dues of lease of the commercial booth
     allotted to the respondent.
C
            3. Respondent-Hari Ram was allotted a booth No.254, Sector-
     20D, Chandigarh by the appellant-Chandigarh Administration for a total
     premium of Rs.70,500/- on lease basis for a period of ninety-nine years
     on 26.12.1996. The respondent made initial payment and possession was
     handed over to him accordingly. The respondent has not paid the first,
D
     second and third installments and ground rent which fell due on 25.12.1997,
     25.12.1998 and 25.12.1999. On 21.06.2006, the lease granted in favour
     of the respondent was cancelled as there was breach of conditions of
     the lease as respondent failed to deposit three installments and also the
     ground rent. Being aggrieved by the cancellation of allotment, the
E    respondent preferred appeal before the Chief Administrator, Chandigarh.
     In the meanwhile, the eviction order was passed against the respondent
     on 09.02.2007 under Section 5(1) of the Public Premises (Eviction of
     Unauthorised Occupants) Act, 1971 as applicable to the Union Territory
     of Chandigarh.
F           4. Challenging the order of eviction, the respondent filed appeal
     before the Appellate Authority-Additional District Judge, Chandigarh.
     The Additional District Judge vide order dated 14.05.2007 set aside the
     order of eviction passed by the Estate Officer by holding that the order
     of cancellation of allotment of booth dated 21.06.2006 has been challenged
     by the respondent before the Chief Administrator, Chandigarh and the
G
     said appeal was then still pending. The learned Additional District Judge
     held that since the appeal against the cancellation of allotment was
     pending, the Estate Officer should have waited for decision of that appeal
     and the proceedings initiated by the Estate Officer is not sustainable. On
     those findings, the Appellate Authority-Additional District Judge set aside
H    the eviction order with a direction that the appellant was not to be evicted
      CHANDIGARH ADMINISTRATION AND OTHERS v.                                  61
             HARI RAM [R. BANUMATHI, J.]

from the booth No.254, Sector-20D, Chandigarh till the disposal of the         A
appeal against the cancellation of the allotment of the booth pending
before the Chief Administrator, Chandigarh.
      5. The appeal preferred by the respondent against the order of
cancellation of lease before the Chief Administrator, Chandigarh was
dismissed by order dated 20.08.2008. The Chief Administrator,                  B
Chandigarh held that the Estate Officer has given at least twenty-six
opportunities to the respondent over a period of four years yet the
respondent-allottee failed to deposit the same. The Chief Administrator
refused to accept the request of respondent seeking time to deposit the
amount pending dues before the Estate Officer. Being aggrieved, the
respondent has filed revision before the Advisor to the Administrator,         C
Chandigarh contending that he is a poor and is feeding his family only
from the meagre income earned from his booth. In the said revision, the
respondent has undertaken to pay the entire outstanding amount in case,
opportunity is given to him. The Advisor to the Administrator vide order
dated 22.10.2008 dismissed the revision and held that the respondent           D
was given sufficient time by the appellate court to clear the outstanding
dues but the respondent has failed to avail the same.
       6. Being aggrieved, the respondent filed writ petition before the
High Court in CWP No.19200 of 2008 and the same was allowed by the
High Court vide the impugned order. The High Court held that at the            E
time of allotment in 1996, the total premium for the booth was Rs.70,500/
- and the respondent has so far paid an amount of Rs.1,02,000/- and in
compliance with the interim order dated 10.11.2008, the respondent has
also deposited Rs.40,000/- in the High Court. The High Court held that
further opportunity has to be given to the respondent to pay the outstanding
dues and his case cannot be shut out by citing number of opportunities         F
given to him to deposit the money. The High Court allowed the writ
petition and directed the amount of Rs.40,000/- deposited by the
respondent be returned to him so as to enable him to use the said amount
in paying the outstanding dues of the lease of the commercial booth.
Being aggrieved, the Chandigarh Administration has preferred this appeal.      G
      7. We have heard the learned counsel appearing for both the parties
and perused the impugned order and materials on record.
      8. It is seen from the record that the allotment of commercial
booth No.254, Sector-20D, Chandigarh was made to the respondent on
26.12.1996. As per the terms and conditions of the allotment, the appellant    H
62            SUPREME COURT REPORTS                         [2019] 11 S.C.R.


A    being the lessee was required to deposit the balance 75% within three
     annual equated installments along with the interest and annual ground
     rent as well. The respondent committed default in payment of first,
     second and third installments and also the ground rent which fell due on
     25.12.1997, 25.12.1998 and 25.12.1999. As pointed out by the Chief
     Administrator, Chandigarh in his order dated 20.08.2008, the respondent
B
     was given as many as twenty-six opportunities; but he has failed to
     deposit the dues. The slump in the business cannot be the reason for
     default in payment of the lease rent and the ground rent which fell due
     on 25.12.1997, 25.12.1998 and 25.12.1999.
            9. For holding that the cancellation of allotment would cause
C
     hardship to the respondent and that one more opportunity has to be given
     him to pay the outstanding dues, the High Court has relied upon in Teri
     Oat Estates (P) Ltd. v. U.T., Chandigarh and Others (2004) 2 SCC
     130. In Teri Oat Estates, respondent thereon earlier paid the installment
     amount and during the pendency of the matter before the Court the
D    respondent thereon paid a substantial amount towards the due payable
     together with the interest @ 12%. It is in those facts and circumstances,
     in Teri Oat Estates, the Supreme Court held that resumption of the land
     and the building would cause extreme hardship which may be faced by
     the parties and the same shall not ordinarily be resorted to. In order to
E    maintain an appropriate balance, in Teri Oat Estates, the Supreme Court
     observed that the matter warrants application of the doctrine of
     proportionality.
            10. In the present case, after the allotment, the respondent has
     paid only the initial payment and has not paid the first, second and third
F    instalments and the ground rent which fell due on 25.12.1997, 21.12.1998
     and 25.12.1999 and inspite of several opportunities, respondent has not
     paid the amount. When the respondent has consistently defaulted in
     payment of the premium/instalments, it is open to the competent authority
     to take action in accordance with the law. When the value is stated to be
     above Rs.26 lakhs in the year 2015, the appellant Administration cannot
G    be asked to part with the land at the same rate as in the year 1996.
     Without keeping in view of the default committed by the respondent, the
     High Court was not right in setting aside the order of cancellation of
     allotment and directing the respondent to receive the outstanding dues.
     Since the allotment was made way back in 1996, the respondent cannot
H    insist upon the payment of the then market value in the year 1996.
      CHANDIGARH ADMINISTRATION AND OTHERS v.                                 63
             HARI RAM [R. BANUMATHI, J.]

       11. As on the date of impugned order of the High Court dated           A
26.07.2012, the respondent has paid only an amount of Rs.1,02,000/-.
As seen from the order of the Chief Administrator, Chandigarh dated
20.08.2008, despite the statement made before the Estate Officer that
the respondent is ready to deposit the balance, the amount has not been
paid. In compliance of the order of this Court dated 26.03.2019, the
                                                                              B
respondent is said to have deposited Rs.1,50,000/- with the Chandigarh
Administration. On direction from this Court, the learned counsel appearing
for the appellant has filed an affidavit stating that as on 31.08.2015, an
amount of Rs.1,91,114/- on account of ground rent and interest and a
sum of Rs.2,735/- on account of service tax are due. In the affidavit
filed on 19.08.2015, it is stated that as on the date, as per the collector   C
rate, current market value of the booth is Rs.26,35,772/- plus Rs.48,576/
- (construction charges) and the total is Rs.26,84,348/-. On further
direction from this Court, the learned counsel appearing for the Chandigarh
Administration has submitted that as on 2010, the then current market
value of the booth was Rs.12,77,950/-.                                        D
       12. Since the allotment of the respondent was of the year 1996
and considering the fact that the respondent has already deposited an
amount of Rs.1,02,000/-, it would not be appropriate to direct the
respondent to pay the current market value of the booth. In order to
maintain balance between the interest of the appellant Administration         E
and also the interest of the respondent-allottee and in the interest of
justice, it would be appropriate to adopt the value of the booth as in
2010. Considering the facts and circumstances of the case and also the
fact that the respondent has already deposited an amount of Rs.1,02,000/
-, we deem it appropriate to direct the respondent to pay the then market
value of the booth as of 2010 i.e. Rs.12,77,950/-. The learned counsel        F
appearing for the respondent has submitted that the respondent has so
far paid an amount of Rs.2,72,969/- which is inclusive of the property
tax. Since the respondent claims to have been in enjoyment of the booth
over the years, the property tax paid by him cannot be adjusted against
the amount payable by the respondent. The amount of Rs.10,25,950/-            G
(that is Rs.12,77,950/- less Rs.2,52,000 - amount already paid by the
respondent) is payable by the respondent.
       13. In the result, the impugned order of the High Court is set aside
and this appeal is allowed. The respondent is granted six months time to
pay the amount of Rs.10,25,950/- (Rs.12,77,950/- less Rs.2,52,000/-).         H
64                SUPREME COURT REPORTS                    [2019] 11 S.C.R.


A    On such deposit, the appellant-Administration shall confirm the allotment
     in favour of the respondent and execute the necessary documents in
     favour of the respondent at the expense of the respondent. On failure to
     deposit the amount within the period of six months, the appellant-
     Administration shall proceed with the respondent for eviction in
     accordance with law. This order is passed in the peculiar facts and
B
     circumstances of the present case and shall not be quoted as precedent
     in other matters.


     Ankit Gyan                                                 Appeal allowed.

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