M/S Viresh Trading Company And ... vs State Of U.P. And 2 Others
2019 Latest Caselaw 2699 ALL

HIGH COURT OF JUDICATURE AT ALLAHABAD
 
 

?Court No. - 29
 

 
Case :- WRIT - C No. - 11685 of 2019
 

 
Petitioner :- M/S Viresh Trading Company And Another
 
Respondent :- State Of U.P. And 2 Others
 
Counsel for Petitioner :- Rishikesh Tripathi
 
Counsel for Respondent :- C.S.C.,Archit Mandhyan
 

 
Hon'ble Pankaj Mithal,J.

Hon'ble Prakash Padia,J.

Heard Sri Rishikesh Tripthi, learned counsel for the petitioner and Sri C. B. Pandey, learned counsel for respondents no. 2 and 3.

The petitioner was allotted a shop in the Mandi Samiti on premium. Due to default in payment of the entire premium amount within time the allotment was cancelled.

The aforesaid order was challenged by the petitioner by filing a revision which was allowed by the impugned order dated 26.02.2019, passed by the Director, Mandi Samiti, but while allowing the same he has directed the petitioner to deposit an amount of Rs.9,02,500/- by 31st March, 2019 along with penalty of Rs.25,000/- and interest @ 18% per annum.

The petitioner is aggrieved by imposition of the penalty and demand of interest @18% per annum.

The submission is that in the terms and conditions of allotment nowhere provided for realization of interest and imposition of penalty in case of default.

Learned counsel for the respondents submits that he has instructions that under the terms and conditions a maximum of 2% interest is realizable. However, he is unable to produce any material to that effect also.

In view of the facts and circumstances of the case, we direct respondents no. 2 and 3 to file counter affidavit within three weeks. One week thereafter is allowed to the learned counsel for the petitioner for filing rejoinder affidavit.

Until further orders of this Court, realization of the penalty of Rs.25,000/- and interest @ 18% per annum pursuant to the order dated 26.02.2019 shall remain in abeyance provided the petitioner deposits the balance amount of Rs.9,02,500/- within a period of one month from today.

Order Date :- 9.4.2019/M.A.Ansari