JUDGMENT Mr. Hemant Gupta, J. (Oral):- Challenge in the present writ petition is to the order passed by Chandigarh Housing Board on 26.9.2008 (Annexure-P.6) and the order in revision dated 4.3.2009 (Annexure-P.8), whereby 2.5% of the premium as penalty and interest at the rate of 10% on the entire balance premium due from the petitioners was deducted while making payment of the refund of the 25% bid amount deposited by the petitioner. 2. The respondents conducted public auction in respect of commercial properties in Sector 34-A, Chandigarh. The petitioners were the highest bidder of site Nos. 172-174 in City Sub-Centre, Sector 34-A, Chandigarh having given bid of Rs. 16,41,00,000/-. The petitioners deposited 25% of the premium i.e. amount of Rs. 4,10,25,000/- at the time of auction. The remaining amount was payable within 90 days without interest and with interest in terms of Rule 12, sub-rule (3-A) of the Chandigarh Lease Hold of Sites and Building Rules, 1973 (hereinafter referred to as ‘the Rules’) thereafter. 3. The petitioners submitted a request for surrender of the plot on 5.5.2006, which was received in the office of the Board on 8.5.2006 i.e. 89th day. The petitioners were refunded an amount of Rs. 3,39,55,212/- after deducting a sum of Rs. 70,69,787/- as penalty @2.5% and 10% interest on the remaining 75% premium in terms of the following condition in the letter of allotment: “Surrender of site will be accepted subject to the following conditions:- (i) The lessee who has already paid at least 25% premium of the Site, may, before he is offered possession of the site, and within 180 days of the allotment of the site whichever is earlier, surrender the site on payment of penalty equal to 2½% of the premium. Interest @10% shall be charged on the remaining premium due from the allottee for the period from the date of allotment (auction) upto the date of surrender. However, the interest for the delayed payment i.e. beyond 90 days from the date of auction, shall be charged @ 20% p.a. The date of surrender under these rules shall be the date when intimation by the lessee to this effect reaches the Chief Executive Officer, Chandigarh Housing Board, Chandigarh. xx xx xx xx xx” 4. However, the interest for the delayed payment i.e. beyond 90 days from the date of auction, shall be charged @ 20% p.a. The date of surrender under these rules shall be the date when intimation by the lessee to this effect reaches the Chief Executive Officer, Chandigarh Housing Board, Chandigarh. xx xx xx xx xx” 4. The petitioners disputed the said deduction before the Chairman, Chandigarh Housing Board, Chandigarh which was dismissed on 26.9.2008 and the further revision was dismissed by the Adviser to the Administrator, U.T., Chandigarh on 4.3.2009. 5. Learned counsel for the petitioners has vehemently argued that the remaining 75% of premium amount was not due on the date, when the petitioner submitted request for surrender of plot and that no interest was payable on the premium amount on that day, therefore, the respondents are wholly unjustified in claiming interest @10% on remaining 75% premium amount. 6. Mr. Sanjay Kaushal, learned Senior Standing Counsel for Chandigarh Administration, has argued that in terms of Rule 10-A of the Rules, the entire premium amount was due on the date of auction and, therefore, the interest is payable on the unpaid premium amount in terms of the Statutory Rules which were communicated to the petitioners in the letter of allotment as well. Mr. Kaushal relies upon Rule 10-A of the Rules and the conditions in the letter of allotment. The relevant extracts from the Rules read as under:- “9. Lease by auction-Procedure for.- In case of lease by auction, twenty five percent of the bid accepted by the Auctioning Officer shall be paid on the spot by the intending lessee in the prescribed mode of payment and the remaining 75% amount of the premium shall be paid within a period of 90 days from the date of auction without any interest failing which interest as specified under sub-rule (3-A) of rule 12 shall be charged. In case the intending lessee fails to pay the remaining 75% amount of the premium as mentioned above within 90 days of the auction, the Estate Officer may cancel the lease or forfeit the whole or any part of money, if any, paid in respect thereof, which in no case, shall exceed 10% of the total amount of the consideration money, interest and other dues payable in respect of the lease. 10-A Surrender of Site or Buildings.- (1)The lessee who has already paid at least 25% premium of the site or building, may, before he is offered possession of the site or building by the Estate Officer, and within 180 days of the allotment of the site or building, whichever is earlier, surrender the site or building on payment of penalty equal to 2.5% of the premium. Interest prescribed in rule 12 (2) shall be charged on the remaining premium due from the allottee for the period from the date of allotment upto the date of Surrender. The date of surrender under these rules shall be the date when intimation by the lessee to this effect reaches the Estate Officer. (2) to (4) xx xx xx xx 12. Payment of premium and consequences of non-payment or late payment:- (1) xx xx xx (2) If payment is not made in accordance with sub-rule (1) of this rule, the balance of the 75 per cent premium shall be paid in three annual equated instalments alongwith interest at the rate of 10 per cent per annum (or at such higher rate of interest as may be fixed by the Chief Administrator by a notification in the official Gazette) before the commencement of the lease. The first instalment shall become payable after one year from the date of allotment/auction. Xx xx xx xx xx (3-A) In case any equated instalment under sub-rule (2) or remaining 75% amount of the premium payable under rule 9 or ground rent or part thereof, is not paid by the lessee by the date on which it became payable he shall be liable to pay in respect of that instalment or remaining amount of premium for ground rent or part thereof, as the case may be, interest calculated at the rate of twenty per cent per annum from the date on which the installment or remaining 75% amount of the premium or ground rent payable till such date it is actually paid. xx xx xx xx xx” 7. As per Rule 9 of the Rules, a successful lessee is not liable to pay interest on 75% of the balance premium amount for a period of 90 days. xx xx xx xx xx” 7. As per Rule 9 of the Rules, a successful lessee is not liable to pay interest on 75% of the balance premium amount for a period of 90 days. In terms of Rule 10-A, a lessee can surrender site or building before he is offered possession of the site or building by the Estate Officer or within 180 days of the allotment of the site or building, whichever is earlier, on payment of penalty equal to 2.5% of the premium. The interest as prescribed under Rule 12(2) is chargeable on the remaining premium due from the allotee for the period from the date of allotment up to the date of surrender. Rule 12(3-A) of the Rules contemplates payment of interest on 75% amount of the premium if it is not paid by the lessee by the date on which it became payable, as per the rate of interest, mentioned therein. 8. The petitioner has submitted request for surrender of plot, which was received by the respondents within 90 days i.e. the period during which the petitioner could deposit the balance premium amount without interest. For surrender of a plot within 90 days, he is being charged penalty of 2.5% of the premium. The charging of interest on the unpaid amount of premium even when the same was not due is wholly unjustified and is penal in nature. Apart from the said fact, we find that harmonious reading of Rules 9, 12 (2) & 12(3-A) would lead to the conclusion that since no interest is payable by the lessee for a period of 90 days similarly on reciprocal basis, the Administration would not be liable to claim interest for the said period. This is the only reasonable and harmonious construction of conjoint reading of the Rules, referred to above. 9. Consequently, the writ petition is partly allowed. Levy of interest at the rate of 10% on the unpaid 75% premium amount is set aside. 10. The respondents are directed to refund such amount within 30 days of the receipt of the certified copy of the order. If the amount is not refunded within 30 days, the same shall be payable with interest at the rate of 10 % payable from the date of receipt of request for refund. 11. The writ petition stands disposed of accordingly. ----------------------