LT GOVERNOR OF DELHI Vs. GUPTA TRADING COMPANY

JUDGEMENT

(1.) THE challenge by means of this Regular First Appeal under Section 96 of Code of Civil Procedure, 1908 (CPC) is to the impugned judgment and decree dated 2.3.2002 whereby the suit of the respondent/plaintiff for recovery has been decreed on the ground that the appellants/defendants were not entitled to forfeit the earnest money inasmuch as respondent/plaintiff had already withdrawn his offer on 18.9.1998 whereas the contract was placed upon the respondent/plaintiff only later on 13.10.1998.

(2.) THE facts of the case are that the appellants/defendants invited tenders for supply of 10,000 dual desks for the Director of Education/appellant No.4/defendant No.1. THE tenders were to be submitted upto 3.00 P.M. on 7.10.1997 and were to be opened on the same date at 3.30 P.M. THE respondent/plaintiff vide his letter dated 7.10.1997 made an offer to supply Malaysian Sal dual desks and submitted earnest money of Rs.1 lakh by an FDR. THE period of validity of the FDR was one year i.e. from 6.10.1997 to 6.10.1998. THE respondent/plaintiff kept his offer open for almost one year but since there was no acceptance of his offer, the respondent/plaintiff withdrew his offer vide letter dated 18.9.1998. THE appellants thereafter suddenly issued its letter dated 13.10.1998 accepting the offer of the respondent/plaintiff and followed it up with a formal contract dated 17.11.1998. Since the respondent/plaintiff failed to abide by this contract, the appellants/defendants forfeited the earnest money and for recovery of which the subject suit came to be filed.

(3.) THERE is accordingly no merit in this appeal which is therefore dismissed, leaving the parties to bear their own costs. Trial Court record be sent back.