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2019 DIGILAW 1291 (KAR)

VA Pugalzhendi v. Commissioner Bengaluru Development Authority

2019-06-17

S.SUJATHA

body2019
JUDGMENT : S. SUJATHA, J. 1. Heard the learned counsel for the respective parties. 2. The petitioner has sought for a direction to the respondent Nos.1 and 2 for issue of lease agreement as per the allotment letter No.296/08 dated 18.01.2008 of the respondent No.1 relating to the property in question. 3. The petitioner is claiming to be an allottee of site No.3-A situated at HAL 3rd stage, Konena Agrahara, Bengaluru-560017 measuring to an extent of 346.72 meters allotted vide allotment letter No.296/2008 dated 18.01.2008 by the respondent No.1. It is contended that in terms of the said allotment letter, the petitioner was directed to pay a sum of Rs.17,33,606/- for a period of 30 years with annual lease amount of Rs.3,14,302/- or lumpsum amount at one time. However, the petitioner has voluntarily paid the entire amount of Rs.17,57,919/- on 01.10.2012. The break up figures are indicated as under: (i) The initial deposit vide D.D dated 18.01.2018 for Rs.1,73,360/-; (ii) One time yearly payment vide D.D dated 21.10.2009 for Rs.3,14,302/-; and (iii) The balance amount vide D.D dated 01.10.2012 for Rs.14,43,617/-. Thus, it is contended that the petitioner had paid a total sum of Rs.19,31,279/- with an excess amount of Rs.43,617/-. 4. The respondent No.1 had levied interest alleging delayed payment as per the proceedings dated 26.06.2014 pursuant to which the petitioner had made request for waiver of interest by their letter dated 05.01.2015. The Rule providing for waiver of payment of interest has not been applied by the respondent - Bangalore Development Authority; in demanding interest to execute the lease agreement as per the allotment dated 18.01.2008 is nothing but abdication of their responsibilities. 5. Learned counsel for the petitioner referring to Annexure C, would point out that the site in question was cleared and lying vacant only from 15.01.2013. In such circumstances, demanding the interest arbitrarily by the respondent - BDA is unjustifiable. 6. Learned counsel Sri.G.M.Chandra Shekhar, appearing for the respondent - BDA having filed the statement of objections, invited the attention of this Court to the endorsement dated 06.03.2015, Annexure-R2 wherein, the request of the petitioner to waive of the interest has been rejected as far back as on 06.03.2015. The same not having been challenged by the petitioner, the request of the petitioner to issue lease agreement as per the allotment letter dated 18.01.2008 without demanding the interest for the belated period is unsustainable. 7. The same not having been challenged by the petitioner, the request of the petitioner to issue lease agreement as per the allotment letter dated 18.01.2008 without demanding the interest for the belated period is unsustainable. 7. I have given my careful consideration to the arguments advanced by the learned counsel for the parties and perused the material on record. 8. It is an undisputed fact that the balance amount of Rs.14,43,617/- out of the total lease amount of Rs.17,33,600/-, was paid on 01.10.2012. Rule 10 of Bangalore Development Authority [Allotment of Civic Amenity Sites] Rules, 1989 deals with the conditions of allotment of civic amenity sites. Sub-clause [3] of the said provision reads thus: "[3] If the lease amount or the annual installment is not paid within the period of ninety days, further extension of time not exceeding sixty days may be given and the institution shall pay in addition, interest at the rate of eighteen per cent on the said amount for the extended period. If the lease amount or the installment is not paid within such extended period also, then registration fee and the initial deposit shall be liable to forfeiture and the allotment cancelled without any period intimation" 9. A reading of this provision makes it clear that if the lease amount or the annual installment is not made within a period of 90 days, further extension of time not exceeding 60 days may be given and the institution shall pay in addition, interest at the rate of 18% on the said amount for the extended period. If the lease amount or the installment is not paid within the said extended period also, then the registration fee and the initial deposit shall be forfeited and the allotment cancelled without any prior intimation. It was mandatory for the petitioner to pay the interest at the rate of 18% on the balance amount paid beyond the extended period i.e., on 01.10.2012 against the allotment made on 18.01.2008. The request of the petitioner to waive of the interest being rejected by the respondent - BDA as per Annexure-R2 dated 06.03.2015, the plea of the petitioner that no interest could be demanded by the respondent - BDA in view of the site being cleared only on 15.01.2013 is nothing but a shelter taken to seek protection from the cancellation of the allotment made. 10. 10. Neither the allotment letter nor the conditions of the allotment of civic amenity sites as provided under the Rule 10 provides for the levy of interest only after the site is cleared by removing the stone, sand and other un-useful materials if lying in the said site allotted. This theory propagated by the learned counsel for the petitioner goes against the purpose and object of the Rules. The said arguments are misconceived and must fail. In view of the aforegoing reasons, the respondent Nos.1 and 2 are directed to issue lease agreement as per the allotment letter dated 18.01.2008 subject to the petitioner paying interest at the rate of 18% on the amount paid beyond the extended period in terms of the Rule 10 of the Rules. If such interest is paid, the respondent - BDA shall execute the lease agreement within a period of two weeks from the date of payment of the interest in full. With the aforesaid observations and directions, writ petition stands disposed of.