# UNION TERRITORY, CHANDIGARH ADMN. AND ORS v. MANAGING SOCIETY, GOSWAMI, GDSDC

- **Citation:** [1996] 2 S.C.R. 620
- **Court:** Supreme Court of India
- **Decided:** 1996-02-14
- **Case number:** Civil Appeal No. 10419 of 1995
- **Source:** https://unisonlegal.in/judgment/supreme-court-of-india/union-territory-chandigarh-admn-and-ors-v-managing-society-goswami-gdsdc-13984
- **Pages:** 3

## Headnote

A
UNION TERRITORY, CHANDIGARH ADMN. AND ORS.
B
v.
MANAGING SOCIETY, GOSWAMI, GDSDC
FEBRUARY 14, 1996
. [KULDIP SINGH AND S. SAGHIR AHMAD, JJ.]
Punjab (Development and R~gulation Act), 1952/Chandigarh Leasehold of Sites and Building Rules, 1973 : Rule ]~Allotment of land to
Society-Demand of difference in ground rent paid and payable under
C statutory Rules-High Court holding that the annual rent fIXed could not have
been revised-On appeal held, a contract in violation of mandatory provisions
of law can only be read and enforced in tenns of the law ·and in no other
way-Equitable estoppel cannot be raised since there can be no estopple
ID
E
F
against statute.

## Text

A
UNION TERRITORY, CHANDIGARH ADMN. AND ORS.
B
v.
MANAGING SOCIETY, GOSWAMI, GDSDC
FEBRUARY 14, 1996
. [KULDIP SINGH AND S. SAGHIR AHMAD, JJ.]
Punjab (Development and R~gulation Act), 1952/Chandigarh Leasehold of Sites and Building Rules, 1973 : Rule ]~Allotment of land to
Society-Demand of difference in ground rent paid and payable under
C statutory Rules-High Court holding that the annual rent fIXed could not have
been revised-On appeal held, a contract in violation of mandatory provisions
of law can only be read and enforced in tenns of the law ·and in no other
way-Equitable estoppel cannot be raised since there can be no estopple
ID
E
F
against statute.
CIVIL APPELLATE JURISDICTION : Civil Appeal No. 10419 of
1995.
From the Judgment and Order dated 22.10.91 of the Punjab &
Haryana High Court in c:w.P. No. 6149 of 1991.
S. Ujagar, Devender Verma and Naresh Bakshi, for the Appellants.
D.V. Seghal, AV. Palli and Ms. Rekha Palli for the Respondents.
The following Order of the Court was delivered :
The Chandigarh Administration allotted 10.5 . acres of land to the
managing Society, Goswami Ganesh Dutt Sanatan Dharam College, Chandigarh {The Society), respondent in the appeal herein, by the letter dated
June 21, 1975. The Estate officer, Chandigarh Administration, on March
15, 1991, directed the Society to pay a sum of Rs. 1,74,690, the difference
G between the ground rent already paid by the Society and the one which
was payable under the statutory ~ules. The Society challenged the notice
by way of a writ petition before the Punjab and Haryana High Court. Writ
petition was allowed by tlie High Court and· the demand notice was
quashed .. This appeal by the Chandigarh Administration is against the
H judgment of the High Court dated October 22, 1991.
620
....
UNION TERRITORY v. MANAGING SOCY. GOSWAMI
621
The land was allotted to the society for a period of 99 years at the A
rate of Rs. 10 per square yard with ground rent at the rate of Rs. 100 per
acre per annum. The allotment to the Society was subject to the provisions
of the capital of Punjab (Development and Regulation) Act, 1952 (the Act)
and the rules framed thereunder. The Chandigarh Lease-hold of Sites and
Buildings Rules, 1973 (the rules), framed under the Act were enforced with
effect from August 20, 1973. Rule 13 of the rules is as under :
"13. Rent and Consequences of non-payment. In addition to the
premium, whether in respect of site or building, the lessee shall
pay rent as under :
(i) Annual rent shall be 2-1/2% of the premium for the first 33
years which may be enhanced by the Chandigarh Administration
to 3-3/4% of the premium for the next 33 years and to 5% of the
premium for the remaining period of the lease.
B
c
(ii) Rent shall be payable annually on the due date without any D
demand from the Estate Officer.
Provided that the Estate Officer may for good and sufficient
reasons extend the time for payment of rent upto six months on
the whole on further payment of 6% per annum interest from the E
due date upto the date of actual payment.
(iii) If rent is not paid by the due date, the lessee shall be liable
to pay a penalty not exceeding 100% of the amount due which may
be imposed and recovered in the manner laid down in section 8
of the Capital of Punjab (Development and Regulation) Act, 1952, F
as amended by Act No. 17 of 1973".
It is obvious from Rule 13 reproduced above that in addition to the
premium the lessee under the Act and the rules has to pay annual rent at
the rate of 2-1/2% of the premium for the first 33 years. The fixation of
the premium at the rate of Rs. 100 per acre, in the case of the society was G
in patent violation of the rules. There is no discretion under the rules with
the Chandigarh Administration to fix annual rent at a rate lower than the
one provided under the rules. It is stated by the Chandigarh administration
that while preparing comments to the complaint filed by one Dr. M.L.
Saini, Chall-man of the Chandigarh Recognised Schools Management As- H
622
SUPREME COURT REPORTS
[1996] 2 S.C.R.
A
sociation before the Rajya Sabha Committ~e, it came to the notice of the
administration that the fixation of annual rent, in respect of the land
allotted to the Society and some other educational institution, was in
violation of Rule 13 of the rules. It was under these circumstances that the
mistake which was made in the year 1975 was sought to be corrected in
B the year 1991. The Society challenged the action before the High Court on
the ground that there was no power of review under the Act and the rules
and as such the Chandigarh Administration could not review its order after
a period of 16 years. It was also contended that the Chandigarh Administration was estopped from passing an order prejudicial to the Society
specially when the Society has constructed buildings etc. on the allotted
C land by incurring huge expenditure. The High Court did not go into the
question of equitable estopple and allowed the writ petition on the short
ground that in the absence of any power of review under the Act and the
rules the Chandigarh Administration could not have revised the annual
rent fixed in the allotment letter dated June 21, 1975.
D
E
F
We are of the view that the High Court fell into patent error in
quashing the demand and the notice based on the mandatory provisions of
the rules. There is no question of review in the facts and the circumstances
of this case. The Chandigarh Administration did not cancel the allotment.
It only corrected a patent mistake which could not be permitted to subsist.
There is nothing on the record to show that the Estate Officer or any other
authority applied its mind and passed a conscious order fixing the annual
rent at a rate lower than the one provided under Rule 13 of the rules. We
have not been shown any power under the Act or the rules permitting
relaxation of the mandatory provisions of the rules. A contract in violation
of the mandatory provisions of law can only be read and enforced in terms
of the law and in no other way. The question of equitable estopple does
not arise in this case because there can be no estopple statute.
We, therefore, allow the appeal, set aside the impugned judgment of
. the High Court. The writ petition filed by the society before the High Court
G shall stand dismissed. No costs.
G.N.
Appeal allowed.