BASANT PROJECTS LTD Vs. D D A

JUDGEMENT

(1.) On 8.8.2001 DDA conducted an auction of commercial plots. One such plot being No.10(CS) Sector- 7, Pocket E-I, Rohini, admeasuring 1717 sq. mtrs. was put to auction. Terms and conditions notified to the bidders, the following:- 2. Bidding at auction and submission of application (i) ........ (ii) The bid shall be for the amount of the premium offered for the perpetual lease hold rights in the plot. The plot is being auctioned on 'as is where is basis'. It is presumed that the intending purchaser has inspected the site and familiarised himself with the prevalent site conditions in all respects before giving the bid. (iii) ......... (iv) ......... (v) ......... (vi) ......... (vii) ......... (viii) In case the payment is not received within the stipulated period indicated in the demand letter, the auction bid shall automatically stand cancelled and the 25% earnest money shall stand forfeited, without any notice.

(2.) As per the terms of the auction, highest bidder was to deposit as earnest money a sum equivalent to 25% of his bid at the fall of the hammer. Remaining 75% was to be paid within 90 days of intimation of the bid confirmation coupled with the issuance of a demand letter. Further, this time period of 90 days was extendable upto a maximum of 180 days subject to payment of interest on the balance amount at the rate of 18% p.a. where the delay was 30 days or less and 25% p.a. where the delay exceed 30 days.

(3.) Petitioner submitted its bid at the auction held on 8.8.2001. Petitioner's bid was the highest. It was in the sum of Rs.5,72,01,000/-. 25% of the bid amount towards earnest money as per the terms of the auction in the sum of Rs.1,43,00,250/- was deposited by the petitioner on the same day.