THE ESTATE OFFICER, PUNJAB URBAN PLANNING & DEVELOPMENT AUTHORITYversusJAGTAR SINGH AND ORS.
- Citation
- 2017 INSC 640
- Decided
- 19 July 2017
- Disposal
- Disposed off
- Bench
- KURIAN JOSEPH
Holding
A court in contempt jurisdiction must not adjudicate a dispute; therefore, the High Court's order directing payment of interest was set aside.
Summary
The Punjab Urban Planning and Development Authority (PUDA) and its successor GMADA were found to have charged excess rates for plot allotments, which the High Court reduced. The allottee, Jagtar Singh, sought interest on the refunded excess amount, but PUDA declined, citing no policy for interest. After PUDA failed to respond to a justice demand notice, a contempt petition was filed, and the High Court, in contempt jurisdiction, directed PUDA to pay interest at 15% per annum. PUDA appealed, and the Supreme Court held that a court exercising contempt jurisdiction should not adjudicate a substantive dispute such as entitlement to interest; consequently, the High Court's order was set aside. The Court granted the respondent liberty to challenge PUDA's January 2006 order in the appropriate forum and disposed of the appeal.
Issues considered
- Whether a court exercising contempt jurisdiction can adjudicate the substantive dispute of entitlement to interest on a refund.
- Whether the High Court could validly direct payment of interest in contempt proceedings.
Legislation cited
- Constitution of Indias. Article 226, s. Article 227
Subjects
Judgment
[2017] 6 S.C.R. 491
THE ESTATE OFFICER, PUNJAB A
URBAN PLANNING & DEVELOPMENT AUTHORITY
v.
JAGTAR SINGH AND ORS.
(Civil Appeal No. 1749 of 2008)
B
JULY 19,2017
[KURIAN JOSEPH AND R. BANUMATHI, JJ.]
Contempt jurisdiction - Respondent no. I challenged the
excess rates for allotment of plots - Pursuant to direction of High
Court, rates were reduced - Respondent filed writ petition for C
payment of interest which was disposed of with directions to issue
justice demand notice upon the authorities and on service of such
notice, authorities to take decision within two months from receipt
of certified copy of the order - Authorities did not respond -
Respondent-allottee flied contempt petition - Meanwhile, authorities D
passed order dated 20'h January, 2006 declining grant of interest
to the respondent-allottee saying that there was no policy to make
payment for interest - When matter came up before High Court in
the contempt jurisdiction, High Court directed authorities to pay
interest@ 15% p.a. - Challenged by Estate ojjicer - Held: Normally
in a contempt jurisdiction the Court should not enter upon E
adjudication of a dispute - Jn the instant case, no such adjudication
was made except to pass an order in equity - This matter needs to
be adjudicated regarding the entitlement of interest - Impugned
judgment passed by the High Court set aside - Further, liberty
granted to the respondent to challenge order dated 2()1h January; F
2006 before the appropriate forum.
Disposing of the appeal, the Court
HELD: Normally in a contempt jurisdiction the Court shall
not enter upon adjudication of a dispute. Maybe the applicant in
a contempt petition is entitled to some relief but relief has to be G
granted after proper adjudication of the dispute because only after
a proper adjudication, it is clear as to what will be the actual relief,
if any and if at all, that has to be granted to the aggrieved person.
Apparently, in the instant case, no such adjudication has been
H
491
492 SUPREME COURT REPORTS [2017] 6 S.C.R.
A made except to pass an order in equity. The situation would have
been different had it been a case of mere implementation or
execution of an otherwise clear order or direction. In the instant
case there is no decree or order on entitlement for interest. The
matter needs adjudication regarding the entitlement of interest.
B The impugned judgment passed by the High Court is set aside.
Further, liberty is granted to the respondent to challenge the
order dated 20'h January, 2006 before the appropriate forum. In
case such a challenge is made within a period of one month; the
same may not be dismissed on the ground of delay. If such a
challenge is made, having regard to the fact that the parties have
C been in litigation for more than a decade, we request the forum
concerned to dispose of the matter expeditiously and preferably
within a period of one year from the date of institution. [Paras
7-9) [496-D-F, G-H; 497-A)
CIVIL APPELLATE JURISDICTION : Civil Appeal No. 1749
D of 2008.
From the Judgment and Order dated 07.12.2006 of the High
Court of Punjab and Haryana at Chandigarh in Contempt Petition
(C.O.C.P.) No.1286 of2005.
E Ms. Rachana Joshi Issar, Ms. Vandana Mishra, Ms. K. Vaijanthi,
Advs. for the Appellant.
Sameer Abhyankar (for M/s. Mitter & Mitter Co.), Karan
Bharihoke, Vibhooti Malhotra, Kuldip Singh, Advs. for the Respondents.
F The Judgment of the Court was delivered by
KURIAN, J. 1. The appellant is aggrieved by the impugned
order dated 7'h December, 2006 passed in C.O.C.P.No.1286 of 2005. It
may be necessary to refer to the bare facts.
G 2. The respondent No. I-contempt petitioner/allottee has
approached the High Court with a grievance that the appellant-Punjab
Urban Planning and Development Authority (for short "PUDA") through
its successor Greater Mohali Area Development Authority (for short
"GMADA") has charged excess rates for allotment of plots. Pursuant
H
THE ESTATE OFFICER, PUNJAB URBAN PLANNING & DEVELOPMENT 493
AUTHORITY v. JAGTARSINGH [KURIAN,J.]
to the directions issued by the High Court, the rate was reduced from A
Rs.3600/- to Rs.1400/- per square yard. Thereafter, the respondent-
contempt petitioner/allottee filed Civil Writ Petition No.2851 of2005 for
payment of interest which has been disposed of by judgment dated 21"
March, 2005. The judgment reads as follows:-
"We have· heard the learned counsel for the petitioner. The B
petitioner has invoked the jurisdiction of this Court under Article
226/227 of the Constitution of India for issuance of a writ of
mandamus directing the respondents to pay the interest upon the
amount which has been refunded.
c
We are afraid that such kind of indulgence cannot be granted
unless justice demand notice is served upon the respondents.
Learned counsel for the petitioner further states that the petition
be dismissed as withdrawn with liberty to serve justice demand
notice upon the respondents. If such a notice is served upon the D
respondents within 15 days from today, the respondents shall take
conscious and cautious decision thereon within two months from
the receipt of a certified copy of this order.
Disposed of."
E
3. Since there was no response from the PUDA within the time
stipulated by the High Court, the respondent-allottee filed Contempt
Petition No.1286 of2005. During the pendency of the Contempt Petition,
order dated 201l1 January,2006 was passed declining to grant interest
saying that there was no policy to make payment for interest. The order F
reads as follows:-
"To
Col.Jagtar Singh (Retd.)
D-89,D Block,
Ranjit Avenue, Amritsar. G
No./2006/1677-78 dated20.01.2006
. Subject: Regarding allotment of Plot No.69, Sector-
69, Mohali-CWP No.2851 of2005.
H
494 SUPREME COURT REPORTS [2017] 6 S.C.R.
A In connection with the above cited subject it is intimated
that PUDA doesn't have any policy according to which interest
could be paid. Accordingly, the Justice Demand Notice sent by
you has been filed after due consideration.
Sd/-
B Estate Officer,
PUDA, Mohali."
4. It appears that the High Court directed the PUDA to file an
affidavit on the following terms. The order reads as follows:-
·C
" As requested by learned counsel for the respondents, adjourned
to 25.09.2006.
Meanwhile, the affidavit, if any, be filed explaining:-[i] what
was the rate of interest charged from the petitioner;[ii] whether
the said interest has been included in the refund made to the
D
petitioner in terms of the order passed by this Court; and [iii] why
the respondents are not liable to pay interest on the refund amount.
Affidavit, if any, be filed within one week from today."
Accordingly, the Estate Officer, PUDA filed an affidavit. The
E affidavit reads as follows:- ,
"I, the deponent above named do hereby solemnly affirm and
state as under:-
I. That the case mentioned supra had come up for hearing on
.F 1.8.2016, on which date, a direction for filing an affidavit on the
issues mentioned therein, was made. Subsequently, by means of
another order dated 9.10.2006, the matter was adjourned to
7.12.2006 and the requisite affidavit was directed to be filed.
2. That it is clarified that interest@ 15% p.a. was charged
G from the petitioner in consonance with the provisions of the
Allotment letter. No interest has been paid on the refunded amount.
The respondents are not liable to pay any interest on the refunded
amount because no policy exists in PUDA for paying interest on
the refund amount.
H
THEESTATEOFFICER, PUNJABURBANPLANNING &DEVELOPMENT 495
AUTHORITY v. JAGTARSINGH [KURIAN,J.]
3. That it is pertinent to mention here that in consonance with the A
orders dated 21.3.2005 passed by this Hon'ble Court in CWP
No.2851 of2005, a letter dated 20.1.2006 was sent to the petitioner,
wherein the decision of the Justice Demand Notice was conveyed
to him. A copy of the same is appended herewith as Annexure
CR-1.
B
4. That it is not out of place to mention here that the decision to
reduce the amount payable by the petitioner, from Rs.3600/- to
Rs.1400/- was made by the authorities themselves on 24.4.2003, ·
on a representation having been made by the petitioner on
15.03.2002 for being considered similarly as Subedar Anokh Singh
in CWP No.11871 of 1997. The petitioner did not have to go c
through any protracted litigation on that account. Accordingly,
the amount of Rs.14,28, 713/- was immediately refunded to the
petitioner on 20.06.2003 by means of Cheque No.057376. As
such, PUDA is not liable to pay any interest on the same, more so
in view of the fact that PUDA does not have any policy of paying D
interest on any refund amount as also the fact that no such clause
· for paying interest on refund amount exists in the Allotment letter."
5. When the matter came up before the High Court in the
contempt jurisdiction, based on the affidavit, the following order was
~~: . E
"The facts are hardly in dispute. It is admitted that the
petitioner was charged interest@ 15% per annum but no interest
has been paid on the refund amount "because no policy exists in
PUDA for paying interest on the refund amount".
The plea taken by the respondents that the interest is F
not payable because there exists no policy, can neither be sustained
in law nor in equity. Once, this Court found that the rate ofRs.3600/
- fixed by PUDA for the plots in question was excessive and jt
could not have been more than Rs.1400/- per sq.yard, there can
be no exception but to hold that the petitioner was unauthorizedly G
charged at a higher rate. Admittedly, he paid interest @ 15% per
annum. The respondents cannot take advantage of their own
wrongs. The petitioner, therefore, is entitled for the refund of the
excess amount at the same rate of interest which he had paid to
the respondents.
H
496 SUPREME COURT REPORTS [2017] 6 S.C.R.
A At the same time, there being a serious dispute with
regard to the interpretation of the orders passed by this Court,
respondents cannot be said to be guilty ofwillfal and deliberate
breach of such orders.
Consequently, this petition is disposed of with a
B clarificatory direction that on the excess amount, which has already
been refanded to the petitioner, he shall be paid interest @ 15%
per annum, within a period of three months from the date of receipt
of a certified copy of this order.
Rule discharged."
c 6. Aggrieved the Estate Officer, Greater Mohali Area
Development Authority has filed this appeal.
7.Having heard learned counsel appearing on both sides, we do
not think it necessary to refer to the contentions or to the legal position
except to reiterate the settled position that normally in a contempt
D jurisdiction the Court shall not enterupon adjudication of a dispute. Maybe
the applicant in a contempt petitioh is entitled to some relief but relief
has to be granted after proper adjudication of the dispute because only
after a proper adjudication, it will be clear as to what will be the actual
relief, if any and ifat all, that has to be granted to the aggrieved person.
E Apparently, in the instant case, no such adjudication has been made
except to pass an order in equity. The situation would have been different
had it been a case of mere implementation or execution of an otherwise
clear order or direction, In the instant case there is no decree or order
on entitlement for interest.
8. Having regard to the submissions made by the learned counsel
F
appearing for the appellant, we.are of the view that this matter needs
adjudication regarding the entitlement of interest. Therefore, without
expressing any opinion on the various submissions made by the counsel
on both sides, we set aside the impugned judgment passed by the High
Court.
G
9. Further, fiberty is granted to the respondent to challenge the
order dated 20'h January, 2006 before the appropriate forum. We,
therefore, make it clear that in case such. a challenge is made within a
period of one month from today, the same may not be dismissed on the
ground of delay. If such a challenge is made, having regard to the fact
H
THE ESTATE OFFICER, PUNJAB URBAN PLANNING & DEVELOPMENT 497
AUTHORITY v. JAGTAR SINGH [KURIAN, J.]
that the parties have been in litigation for more than a decade, we request A
the forum concerned to dispose of the matter expeditiously and preferably
within a period of one year from the date of institution. Needless also to
say that it will be open to the parties to raise all contentions which are
available to them as per law.
lO. The civil appeal is disposed of in the above terms. B
Devika Gujral Appeal disposed of.
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