D D A Vs. KAILASH NATH

JUDGEMENT

(1.) PURSUANT to a public notice informing that on January 19, 1982, DDA would be conducting a public auction of commercial plots at Delhi; further informing the terms of the auction as per Ex.P -1, at the auction held on January 19, 1982, M/s.Kailash Nath and Associates made the highest bid pertaining to Plot No.2A, Bhikaji Cama Place, District Centre, New Delhi in sum of Rs.3.12 crores, and the hammer fell. Required under Ex.P -1 to pay 25% of the bid amount towards earnest money, M/s.Kailash Nath & Associates deposited Rs.78 lakhs at the fall of the hammer and awaited bid confirmation, since Ex.P -1 had a term that the auction bid was subject to confirmation by the Vice Chairman DDA; and upon bid being confirmed, within 3 months thereafter, the balance bid amount had to be paid and thereafter DDA had to execute the necessary conveyance deed.

(2.) VIDE Ex.P -3 dated February 18, 1982, M/s.Kailash Nath & Associates were intimated by DDA that the Vice Chairman had confirmed the bid, and this required M/s.Kailash Nath & Associates to pay the balance bid consideration in sum of Rs.2.34 crores to DDA by May 18, 1982.

(3.) DDA agreed to consider the request, and probably since a large number of auction purchasers were to be affected, it decided to constitute a committee to consider the matter. The Committee submitted its recommendations on July 21, 1982, recommending to the Vice Chairman DDA that time may be extended for remaining payment to be made, but upon the condition that the bidders would pay interest at different rates for different periods of delay on the amount outstanding. Accepting the recommendation of the committee, vide Ex.P -8 dated Augusts 11, 1982, DDA informed M/s.Kailash Nath & Associates as under: - <FRM>JUDGEMENT_2513_ILRDLH22_2012s1.htm</FRM>