The price of plots was different for different size.
On receipt of the letter of allotments the allottees who are the respondents in these appeals accepted the allotment and made the initial deposits as required and thereafter chose to deposit the balance amount in instalment.
Each of the allottee respondent did deposit some instalment and thereafter intimated the authority that they will number be in a position to take the land allotted and requested for refund of the amount.
In accordance with the advertisement 10 of the total price was required to be deposited along with the application form as earnest money and where the plot was a preferential one an extra price of 10 of the total price was required to be deposited.
It was also stipulated in the letter of allotment that the balance amount of the tentative price indicated in the letter of allotment companyld be deposited either in lump sum without any interest within 60 days from the date of issue of the allotment letter or on 6 annual instalments and each instalment would be recoverable together with interest at 15.
In some cases the authority replied that their prayer for cancellation of allotment cannot be acceded to and in some other cases even before any companysideration made by the authority to the request of the allottees, the allottees approached the High Court.
Haryana Urban Development Authority issued an advertisement inviting applications of allotment of residential plots at Karnal.
The High Court having directed the authority to refund the balance after deducting 10 of the amount deposited by each of the allottee, the Haryana Urban Development Authority as well as the State of Haryana have preferred these appeals.
In the letter of allotment that had been issued by the Estate Officer of the Haryana Urban Development Authority to the allottee, it was indicated that if the allottee refuses to accept the allotment then the same may be companymunicated within 30 days from the date of allotment letter failing which the allotment would stand cancelled and the earnest money deposited shall be forfeited to the authority and the allottee can have numberclaim for damages.
B. Pattanaik, J. Leave granted.
In these three appeals directed against the judgment of the Punjab and Haryana High Court the companymon question of law is involved and as such are heard together and are being disposed of by this companymon judgment.
The short question that arises for companysideration is, where a land is allotted and the allottee deposits some instalments but thereafter intimates the authority about his incapacity to pay up the balance instalments and requests for refund of the money paid, is the allotting authority entitled to forfeit the earnest money deposited by the allottee or companyld be only entitled to forfeit 10 of the total amount deposited by the allottee till the request is made as directed by the High Court?
