ATUL GUPTA Vs. DELHI DEVELOPMENT AUTHORITY

JUDGEMENT

(1.) This is a suit for recovery of Rs.2,98,000.00 with future interest at the rate of 18% per annum.

(2.) On the facts, there is no controversy. Delhi Development Authority, the defendant no.1 had built up certain flats in the Asian Games Village Complex. Though the flats were originally built for the purpose of housing the atheletes and players participating in the Asian Games, subsequently it was decided to allot/ sale the flats to the public by auction. On 29.8.86, flat no.A-32, was put to auction. The plaintiffs made the highest bid of Rs.l 4,85,000.00 which was accepted. 29.8.86 the plaintiffs paid to the DDA Rs.3,71,250.00 itself, being an amount equivalent to 25% of the bid amount. Of these, Rs 10,000 .00 were paid by means of a bank draft and Rs 3,61,250/ were paid in cash. On 8-9.86, the plaintiffs were issued a letter by the defendant calling upon to pay the balance 75% amount. The plaintiffs failed to pay the balance amount. The reasons are not material. The fact remains that the bid was cancelled. Thereafter, the plaintiffs demanded refund of the 25% bid amount deposited by them. They also submitted in the alternative that even if the defendant intended to make a forfeiture, it could not exceed 20% of the deposited amount. However, the defendant did not agree. The defendant has refused to return to the plaintiffs any part of deposited money treating it as forfeited.

(3.) It is common ground that sale by public auction of the flat by the defendant was governed by the Delhi Development Authority (Management and Disposal of Housing Estates) Regulations, 1968. Chapter II of the Regulations deals with terms and conditions of disposal of property. If the property is disposed of by sale, para 8 of the Regulations provides :