DELUXE ESTATES P LIMITED Vs. DELHI DEVELOPMENT AUTHORITY

JUDGEMENT

(1.) This is a suit filed by the plaintiff for recovery of sum of Rs.15,70,081.50 with pendentelite and future interest at the rate of 18% per annum on account of earnest money amounting to Rs.10,51,250/- forfeited by the defendant and interest on the deposit of Rs. 5 lakhs retained by the defendant illegally from 15.3.82 to November 1982.

(2.) In brief the facts of the case are that the defendant DDA published an advertisement in the newspaper notifying that the auction would be conducted on 22.12.81 with respect to various plots namely 6 & 7, 4 & 5 etc. in local shopping Centre, New Friends Colony, New Delhi. With respects to plots No. 4 and 5, the area was s pecified as 135 sq. meter and total floor area was mentioned as 787.50 sq. meters with number of storeys mentioned as 'six plus basement'.

(3.) The plaintiff company submitted bid forms and gave bid of Rs. 42,05,000/-. The said bid was accepted by the defendant DDA. The plaintiff company deposited the earnest money of Rs. 10,51,250/-. Clause 2(vi) of the terms and conditions of auction required the plaintiff to deposit the balance amount within 15 days of the acceptance of the bid and letter dated 2.1.82 was issued to the plaintiff company asking it to deposit the balance amount of Rs.31,53,750/- within 15 days. The plaintiff company was also required to deposit a sum of Rs. 1,05,125/- on account of yearly ground rent payable in advance along with other documents.