JUDGMENT Mr. Hemant Gupta, J. (Oral) - The petitioner is an association of Khokha (kiosk) owners, who were running their Khokhas (kiosk) in the area of Lawrence Road, Amritsar. 2. In the year 1992, Improvement Trust proposed to be rehabilitate Khokha (kiosk) owners who were running their business activities by making scheme for allotment of booths/sites to be constructed in the Nehru Shopping Complex. 3. On 19.02.1998, Annexure P-5, the State Government granted sanction for allotment of booth/sites to Khokha (kiosk) holders through restricted auction but the auction could not be completed for one reason or the other. It has been submitted by the petitioners that on 03.07.2006, a restricted auction was conducted for the members of the petitioner Association which was approved by the Improvement Trust on 31.07.2006. But, the State Government approved the proposal of restricted auction on 26.10.2010 to the kiosk holders at the reserved rate of 2010, but still the allotment of auction of the booths/sites could not be finalized. Thereafter, again the process of auction has been repeated on 05.06.2013. 4. The grievance of the petitioner in the present writ petition is against the fresh auction notice dated 05.06.2013. A further direction has been sought to direct the Improvement Trust to hand-over the possession of booths/shops to the eligible members of the petitioner-Association, who were found successful in auction held on 03.07.2006, which was approved by the Trust on 31.07.2006. 5. During the pendency of the present writ petition, number of interim orders has been passed to find out ways and means for the process of auction for allotment of the booths/sites in the Nehru Shopping Complex to be completed. 6. Learned counsel for the petitioner has vehemently argued that the reserve price by the Corporation is arbitrary that is being arrived at by 20% yearly increase on the basis of base price of 2006. The said reserve price is unrealistic, arbitrary, un-reasonable and cannot be formed basis for auction of the booths/sites to the kiosk holders who are sought to be rehabilitated. 7. It is also argued that reserve price should be fixed as per the collector rate which is more realistic than the hypothetical price arrived at by taking the base price of 2006 with 20% increase every year. 8. On the other hand, Mr. 7. It is also argued that reserve price should be fixed as per the collector rate which is more realistic than the hypothetical price arrived at by taking the base price of 2006 with 20% increase every year. 8. On the other hand, Mr. Indresh Goel, learned counsel for respondent No.2, has justified the increase of 20% on the basis of amendment in the Punjab Town Improvement (Utilization of land and Allotment of Plots) Rules, 1983 (herein after referred as ‘the Rules”), on 11.12.2006, wherein Rule 5 has been amended to provide that after fixation of the price, the same shall be re-fixed for the subsequent years by the Trust, provided there shall be a minimum increase not less than 20% per annum in the rates so re-fixed in respect of the commercial plots. It is, thus, argued that the price has been fixed in terms of the Statutory Rules. The relevant rule i.e. Rule 5 of the Rules (after amendment), reads as under: “5. Fixation of reserve sale price:- (1) The reserve sale price in respect of all the residential plots shall be fixed by the Trust in accordance with the guidelines specified in the Annexure appended to these rules: Provided that after fixation of said price, the same shall be refixed for the subsequent years by the Trust provided there shall be a minimum increase of not less than ten per cent annum in the rates so refixed. (2) The reserve sale price in respect of the multi-storeyed houses shall be the estimated cost of such houses to be determined by the Trust keeping in view the cost of the houses plus the reserve price of the land. (2) The reserve sale price in respect of the multi-storeyed houses shall be the estimated cost of such houses to be determined by the Trust keeping in view the cost of the houses plus the reserve price of the land. (3) The reserve price in respect of commercial plots in a scheme shall be fixed by the Trust, which shall not be less than double of the price so fixed for the residential plots under sub-rule (1): Provided that after fixation of the said price, the same shall be re-fixed for the subsequent years by the Trust provided there shall be a minimum increase of twenty per cent per annum in the rates so refixed or part thereof on proportional basis in case any auction is held before a period of one year: Provided further that the said price shall not in any case be less than the price already fetched by the Trust in immediate previous auction in that scheme.” 9. We have heard learned counsel for the parties and found that the reserve sale price of the residential/commercial plots to be auctioned by the Improvement Trust are required to be fixed in terms of Rule 5, as reproduced above, in accordance with the guidelines specified in the Annexure appended to the Rules. Such guidelines deal with determining the reserve price on three factors i.e. cost of land; development charges and over-head charges. After fixing such charges, the guidelines also provide for provision of unforeseen charges as well. 10. On the other hand, the Punjab Stamp (Dealing of Undervalued Instruments) Rules, 1983 deals with fixation of minimum value of land/property. Though such valuation is for the purposes of levy of stamp duty on instruments of transfer of any property, but such collector rate is reasonable yard-stick of providing value of the land. 10. On the other hand, the Punjab Stamp (Dealing of Undervalued Instruments) Rules, 1983 deals with fixation of minimum value of land/property. Though such valuation is for the purposes of levy of stamp duty on instruments of transfer of any property, but such collector rate is reasonable yard-stick of providing value of the land. Rule 3-A of the said Rules reads as under: “3-A. Procedure to be adopted for fixation of minimum value of land/property – The Collector of district shall in consultation with Committee of experts consisting of officers of the Department of Public Works (Building and Road), Department of Revenue and Rehabilitation, Punjab Urban Development Authority, Department of Local Government, Department of Rural Development and Panchayats, Department of Horticulture/Forest/Town Planning/ Industries or any other department as may be found desirable, fix the minimum market value of land/properties, located in his district, locality-wise and category-wise and convey the same to the Registering Officer(s) for the purposes of levying of stamp duty on instruments of transfer of any property. The value of agricultural land will be fixed per acre/per Bigha whereas for other lands/properties, it will be fixed per marla, per square yards/pe square feet/per square metre keeping in view the following factors: xx xx” 11. We find that fixation of reserve sale price with minimum increase of 10% per annum in the case of residential plots and twice the reserve price in respect of commercial plots with 20% increase per annum is arbitrary. Such reserve price or the yearly increase is without examining any data, but merely assuming that such would be the rates of the residential or commercial areas. However, Rule 3-A provides for determination of the market value in consultation with the Committee of Experts. Though the said Rules have been framed for the purpose of levy of stamp duty, but such Rules having been framed by the State for the levy of stamp duty in pursuance of a Statute, the same can form reasonable basis for fixation of the reserve sale price of the commercial area as well. Therefore, we find that by giving yearly increase of 10% or 20% in respect of residential and plots twice the value of the residential plots for the commercial plots is without any guidelines, discriminatory and based upon the rule of thumb. Such rule of minimum increase without any basis is not sustainable. 12. Therefore, we find that by giving yearly increase of 10% or 20% in respect of residential and plots twice the value of the residential plots for the commercial plots is without any guidelines, discriminatory and based upon the rule of thumb. Such rule of minimum increase without any basis is not sustainable. 12. Consequently, we set aside the reserve sale price fixed vide Annexure P-2/A and direct the respondents to fix the base reserve sale price firstly in accordance with the guidelines specified in the Annexure appended to the Rules and also in terms of Rule 3-A of the Punjab Stamp (Dealing of Undervalued Instruments) Rules, 1983. The higher of the two shall be taken to be reserve sale price for the commercial plots. 13. It is further ordered that in case the booth/sites are not offered for purchase by the members of the Trust or such other similarly situated persons, who are required to be rehabilitated, it will be open for the Improvement Trust to hold public auction in respect of un-auctioned booths. Since the booth/sites are lying vacant for more than 8 years, we direct that the entire exercise be completed within a period of three months from today. 14. Disposed of accordingly. ---------0.B.S.0------------ —————————