UTILITY ENGG I LTD Vs. STATE

JUDGEMENT

(1.) PRESENT application has been filed by the applicant, who was the second highest bidder in the auction conducted by this Court on 13 th October, 2011, for refund of its earnest money. The facts of the present application are that on 13th October, 2011 this Court after conducting an auction had accepted the highest bid of Rs.42,00,000/- of M/s Manasvi Realtors Pvt. Ltd. whereas the applicant, being the second highest bidder with a bid of Rs.40,60,000/-, was directed to comply with the terms of the auction as mentioned in the sale notice. The relevant terms of the sale notice are reproduced hereinbelow:

(2.) ON 3rd November, 2011 when this Court was informed that the highest bidder had defaulted in deposit of 25% of the bid amount within the prescribed time of seven days, it directed the Official Liquidator to forfeit the deposit of M/s Manasvi Realtors Pvt. Ltd. and permitted the Official Liquidator to invite the second highest bidder i.e. the applicant for depositing the bid amount as per the terms of the sale notice. ON 22nd December, 2011, when this Court was informed by the Official Liquidator that even the applicant had defaulted in making payment of the bid amount, the applicant's earnest money was directed to be forfeited in terms of Clause 14 of terms and conditions of sale notice. Mr. Mayank Kumar, learned counsel for the applicant stated that the applicant prior to being informed of the order dated 3rd November, 2011 had vide its letter dated 7th November, 2011 withdrawn its offer and demanded refund of its earnest money. He submitted that by virtue of the terms and conditions of the sale notice, in particular, the clauses reproduced hereinabove, the applicant was at liberty to withdraw its bid at any stage prior to its acceptance by the Official Liquidator. In this connection, Mr. Mayank Kumar relied upon Section 5 of the Contract Act, 1872 which is reproduced hereinbelow: