IN THE H 161 AADIL KAKKA STATE OF PUN CORAM: HON HO Present : Mr Mr. Ms.
  1. The instan 226/227 in the directions; a). 02.0 canc b). due/ safe opp 2. Learned c allotted HIG/MI HE HIGH COURT OF PUNJAB A AT CHANDIGARH CWP No. Date of de AKKAR AND OTHERS Versus F PUNJAB AND OTHERS HON’BLE MR. JUSTICE  HON’BLE MRS. JUSTICE
 Mr. Inderpreet Singh, Advocate for Mr. Siddharth Sandhu, A.A.G., Pun Ms. Kavita Arora, Advocate for resp **** 
, J. (oral) instant writ petition has been filed by n the nature of certiorari, and ma . to respondents for quashin 02.02.2024 (Annexure P-3) cancellation/intimation letter dated b). to restore petitioners allotmen due/installments as per the Scheme safeguard of Clause 3 and 8 of opportunity of hearing and to pass re rned counsel for the petitioners sub IG/MIG flats after successful draw AB AND HARYANA RH P No.9110 of 2026 e of decision: 25.03.2026 …. Petitioners …. Respondents
  
te for the petitioners. ., Punjab. or respondents No.3 & 4. iled by the petitioners under Articles nd mandamus seeking appropriate uashing Resolution No.65 dated 3) and the consequential r dated 11.03.2024 (Annexure P-4) lotment and accept the legitimate cheme brochure, after applying the 8 of the Scheme and to afford pass reasoned speaking order. rs submitted that petitioners were draw of lots under Self-Financing ticles riate ated ntial mate g the fford were cing JYOTI 2026.04.06 14:39 I attest to the accuracy and integrity of this document Scheme at Pak construction of f then flats are to Clause 3 of mod applicant fails t forfeiture, after thereafter, the fla payment. Under occurs in payme normal interest, delay up to six m due where delay installments, eve No.3 and 4 are e opportunity of he 25% of the price failed to get loan spot and the proj Chairman (respo addressed to Dir time for allottee recording therei Banks were refu Resolution (Ann CWP No.9110 of 2026 Pakhowal Road, Ludhiana by re n of flats was to commence within s are to be completed within three years f mode of allotment of the Scheme fails to make the due payment, th after issuance of three notices, eac the flat may be offered to next applic Under Clause 8(2) of the Scheme (A payment of installments, the allottee terest, additional interest @ 3% per a six months from the due date and @ delay exceeds six months. Only if , even within twelve months of its b are entitled to resume property and th y of hearing. Respondents No.3 and 4 price became due on 21.05.2023. The et loan from Bank because no civil co e project remained on paper. This pos (respondent No.3) vide letter dated to Director, Local Govt. Punjab wh llottees to deposit of 1/4th amount therein that tenders had not been floa re refusing loans. In spite of that res (Annexure P-3) dated 02.02.2004 to -2- by respondents No.3 and 4. The ithin six months of draw of lots and e years from commencement. Under heme (Annexure P-2), if successful nt, the entire amount is liable to s, each separated by ten days and t applicant in the waiting list on full me (Annexure P-2) where the delay lottee must pay over and above the per annum at the amount due for and @ 6% per annum on the amount nly if the allottee fails to pay the f its becoming due, the respondents and that too after giving appropriate and 4 had not floated tenders when 3. The petitioners and other allottees ivil construction commenced on the is position was admitted by the then dated 31.05.2023 (Annexure P-5) ab whereas, he sought extension of ount and 75% installment amount n floated, work had not started and hat respondents No.3 and 4 passed 04 to cancel the allotment of flats in The and nder ssful le to and full elay e the e for ount the dents riate hen ttees n the then 5) n of ount and ssed ts in JYOTI 2026.04.06 14:39 I attest to the accuracy and integrity of this document favour of petitio forfeiture of earn 4 issued letter cancellation of f prior notices, he petitioners. The Scheme. 3. Learned S 2 on advance themselves comm 25% of the sale p the petitioners r money. 4. We have learned counsel f the documents. 5. Under Cla “Tw 20% cess paid five amo subj CWP No.9110 of 2026 petitioners on the ground of non-paym of earnest money. In terms of this Res letter (Annexure P-1) to petitioner n of flat and forfeiture of earnest mo es, hearing or speaking order. Simil . The said act of the respondents is in rned State counsel who appeared on b vance notice, submitted that beca s committed violation of contractual sale price of flats, for this reason, the ners regarding cancellation of allotm have heard the rival submissions an unsel for the petitioners and learned St er Clause 3 of the Scheme the paymen “Twenty five percent (25%) (5% a 20% at the time of allotment) of the cess extra on total sale price, (after paid as earnest money), shall be pa five days from the date of allotm amount may be deposited within subject to the payment of three p -3- payment of 1/4th price amount and is Resolution, respondents No.3 and titioner No.9 to inform regarding est money, without any reference to . Similar letters are issued to other ts is in violation of conditions of the d on behalf of respondents No.1 and because the petitioners/allottees actual obligations by not depositing on, the notices were rightly issued to allotment and forfeiture of earnest ns and with the able assistance of ned State counsel have gone through ayment is to be made as under;- % as application/earnest money + f the sale price of such flats + 6% after adjusting the amount already e payable within a period of forty lotment letter. However, the said thin a period of next thirty days ee percent as penalty of the said t and and rding ce to other f the and ttees iting ed to rnest e of ough y + 6% dy rty aid ays aid JYOTI 2026.04.06 14:39 I attest to the accuracy and integrity of this document amo seve the amo equ 9.5% allo 75% disc give beyo prin (det There are three n as “successful a entire amount w days each. This payment.” 6. Under Cla 1. With dep plus 2. The equ inte CWP No.9110 of 2026 amount. If the said amount is not p seventy five days, the allotment sha the amount already deposited shall amount of the flat (seventy five per equal half yearly installments with 9.5% per annum to be completed in allotment. Allottee can make lump 75% within 60 days from date of discount on the balance principal am given. In case of lump sum payment beyond this period of 60 days then principal amount apart from that (details will be mentioned in allotme three notes appended to Clause 3 of th ful applicants if any point of time fa nt will be forfeited after giving thre his flat will be offered to the applic er Clause 6, the scheduled/mode of pa Within 45 days of allotment =25% deposit i.e. amount of earnest mon plus 6% cess. The balance 75% amount will be equated installments under Self F interest rate of 9.5% p.a. -4- not paid within the total period of t shall deemed to be cancelled and hall stand forfeited. The remaining percent) shall be deposited in six with simple interest at the rate of ed in a period of three years from lumpsum payment of the balance e of allotment in which case 5% al amount i.e 75% amount shall be ment towards total amount is made hen this discount shall be given on that include in next installment. lotment letter)”. 3 of the Scheme and note No.3 reads me fails to make due payment, the three months notices in gap of ten pplicants in the waiting list on full of payment is as under : 25% of total cost minus the initial money deposited with application ll be recovered in 6 half yearly lf Financing Scheme with simple of nd ing six of om nce 5% be de on . reads the ten full tial ion rly ple JYOTI 2026.04.06 14:39 I attest to the accuracy and integrity of this document b. Any pay 7. The Impro and cancel the a follows:- “If d add allo 3% date on Whe the Tru resu hea 8. Undispute letter in favour Clause 3(i) of al 25% of the total deposited as earn allottee deposits liable to pay 25% CWP No.9110 of 2026 Any increase in the cost due to en payable alongwith last installment Improvement Trust, Ludhiana is auth l the allotment under Clause 8(2) of If delay is caused in making the d addition to the normal rate of allotment terms and conditions, ad 3% as penalty shall have to be pai date and if the delay is more than on the amount due is to be levied fo Where an allottee or transferee, as the instalment(s) within twelve mo Trust shall be entitled to resume resume the property after giving a hearing to the allottee.” isputedly, the petitioners were issue avour of petitioner No.9 is Annexure allotment letter (Annexure P-1), e total amount after adjusting 6% ces as earnest money), within 45 days of posits the amount within next 30 day ay 25% amount along with 3% penal -5- o enhancement/escalation shall be ent. is authorized to resume the property (2) of the Scheme which reads as the due payment of instalments, in of interest payable as per the , additional interest at the rate of e paid within six months after due han 6 months, then penalty @ 6% ied for the entire period of default. , as the case may be does not pay months of it's becoming due, the me the property. The Trust shall ing an appropriate opportunity of issued allotment letters (allotment nexure P-1) on 06.04.2023. As per 1), allottee is required to deposit 6% cess (after adjusting the amount ys of issuance of allotment letter. If 0 days after 45 days, the allottee is penalty. If 25% total amount is not be perty s as , in the of ue 6% ult. ay the ll of ment s per posit ount er. If ee is s not JYOTI 2026.04.06 14:39 I attest to the accuracy and integrity of this document deposited within and amount prev notice. 9. In view o maximum perio deposited the 25% terms of this Cla allotment w.e.f. approached resp payment of 25% are unable to p reluctant to fin commenced. Th (Annexure P-5) Department, Pun request for exten of HIG/MIG fla request of respon petitioners are gi total amount exc whereas, the let forfeiture of ear stipulation in allo 45+30 days of CWP No.9110 of 2026 within 75 days (45+30), allotment w t previously deposited was to be forf iew of this Clause in the allotmen period within which the allottees/ the 25% of the total cost of the flat wa s Clause, the respondents No.3 and w.e.f. 19.06.2023. From 06.04.2023 ti d respondents No.3 and 4 with reque f 25% of the total cost minus earnest a to pay the amount because the B to finance them for the reason th The petitioners cannot take be 5) by respondents No.3 and t, Punjab because the said letter is da extension of one month from the last IG flats in the Scheme. There is no respondents No.3 and 4 was acceded are given benefit of one month relax nt excluding earnest amount, the sai he letter (Annexure P-4) regarding of earnest amount is issued only on in allotment letter that failure to depo ys of issuance of allotment letter s -6- ent would be considered cancelled e forfeited by the Trust without any llotment letter (Annexure P-1) the ottees/petitioners were required to flat was 75 days from 06.04.2023. In .3 and 4 were entitled to cancel the 023 till date, the petitioners had not request for extension of time for rnest amount on the ground that they the Banks/financial institutions are on that the construction has not ke benefit of issuance of letter and 4 to Director Local Govt. r is dated 31.05.2023 and there was e last date for depositing the amount is nothing on record that the said cceded by the Director. Even if, the relaxation in deposit of 25% of the the said time lapsed on 19.07.2023 rding cancellation of allotment and ly on 11.03.2024. There is a clear o deposit 25% of the amount within tter shall result in cancellation of elled t any ) the d to 3. In l the not for they s are not letter ovt. was ount said , the f the 2023 and clear ithin n of JYOTI 2026.04.06 14:39 I attest to the accuracy and integrity of this document allotment and fo The petitioners h 1). Therefore, th cancelled the allo Therefore, the p The petitioners c allotment letter ( “Self Financed S number of allot Improvement Tr Trust cannot be allottees. 10. In view o same is dismisse 
     

CWP No.9110 of 2026 and forfeiture of previously deposited ners have not challenged the terms of the petitioners cannot take the ple the allotment and forfeited the earnest the petitioners cannot take benefit o oners cannot wriggle out of contractu letter (Annexure P-1). Above all, the nced Scheme” and failure to deposit f allottees may result the abandonm ent Trust. In the absence of generation ot be expected to complete the Schem iew of above discussion, there is no missed.        
           Whether speaking/reasoned: Yes/N Whether reportable : Yes/N -7- posited amount without any notice. rms of allotment letter (Annexure P- plea that Improvement Trust had arnest amount without hearing them. nefit of Clause 8(2) of the Scheme. ntractual obligation as stipulated in ll, the construction of flats is under eposit the earnest amount by large ndonment of Scheme itself by the eration of finance, the Improvement Scheme by construction of flats for is no merit in the petition and the
 
     es/No. es/No . - t had hem. eme. ed in nder large the ment s for d the  JYOTI 2026.04.06 14:39 I attest to the accuracy and integrity of this document