TaxTMI 
TaxTMI 
2012 (8) TMI 1187
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.... 1. Leave granted. 2. The questions raised in both these appeals are the same, hence, we are disposing of both the appeals by a common judgment. 3. The question that has come up for consideration in these appeals is whether the Respondents are legally obliged to pay the interest, penal interest and penalty on account of the delayed payment of installments after having accepted the allotment of commercial plots by way of auction. The High Court has taken the view that since there was delay on the part of the Punjab Urban Planning and Development Authority (for short "PUDA") in providing the basic amenities like parking, lights, road, water, sewerage etc. in time, PUDA cannot legally claim the interest, penal interest as well as penalty....
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....tion or in 4 equated yearly installments along with interest @ 15 % per annum. 6. The annual quoted installment with interest @ 15% per annum will be payable as per the following schedule: Installment Due date Amount Installment of Interest Total amount payable 1st 16.3.2002 5,95,313/- 3,57,188/- 9,52,501/- 2^nd 16.3.2003 5,95,313/- 2,67,891/- 8,52,501/- 3rd 16.3.2004 5,95,312/- 1,78,594/- 7,73,906/- 4th 16.3.2005 5,95,312/- 89,297/- 6,84,609/- 23,81,250/- 8,92,970/- 32,74,220/ In case the installment is not paid on the 10th of the month following the month in which it falls due, PUDA can impose penalty. The penalty Clau....
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....d made in the notice, which was challenged by the Respondents by filing CWP No. 18753 of 2002, which was disposed of vide order dated 13.7.2006 directing the Respondents to file detailed representations before the Additional Chief Administrator. Consequently, a detailed representation was filed by the Respondents on 29.8.2006 before the Additional Chief Administrator stating that since PUDA had failed to provide the basic amenities like drinking water, drainage and public toilets, Respondents were not legally obliged to pay interest, penal interest, penalty etc. on the delayed installments. PUDA took up the stand before the Additional Chief Administrator that the basic amenities like parking, lights, roads, water, sewerage etc. were not pro....
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....mercial plots, published by PUDA, has got considerable bearing in resolving the disputes between the parties. We, therefore, called for the auction notification published by PUDA and the same was made available to us. There was no dispute that the plots were auctioned on 16.3.2001 on the basis of the terms and conditions stipulated therein. Clause 25 is the most important clause, which binds both the parties, reads as follows: 25. The site is offered on "as is where is" basis and the Authority will not be responsible for leveling the site or removing the structures, if any, thereon. In other words, the plot in question was auctioned on "as is where is" basis and the same was accepted by the Respondent on "as is where is" basis. ....
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....ottees were not interested in taking the commercial plots on "as is where is" basis, they should not have accepted the allotment and after having accepted the allotment on "as is where is" basis, they are estopped from contending that the basic amenities like parking, lights, roads, water, sewerage etc. were not provided by PUDA when the plots were allotted. Over and above, the facts would clearly indicate that there was not much delay on the part of PUDA to provide those facilities as well. As noted, the electrical works and health works were completed by 24.12.2002 and 22.11.2002 respectively and all the facilities like parking, lights, roads, water, sewerage etc. were also provided. 13. On facts, we find that this is not a case whe....
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....aving referred to the judgment of this Court in Shantikunj Investment case, this Court held as follows: 19. ... In a public auction of sites, the position is completely different. A person interested can inspect the sites offered and choose the site which he wants to acquire and participate in the auction only in regard to such site. Before bidding in the auction, he knows or is in a position to ascertain, the condition and situation of the site. He knows about the existence or lack of amenities. The auction is on 'as is where is basis'. With such knowledge, he participates in the auction and offers a particular bid. There is no compulsion that he should offer a particular price. 20. Where there is a public auction....