BEHERE BROTHERS Vs. DELHI DEVELOPMENT AUTHORITY

JUDGEMENT

(1.) The petitioners seeks a writ of mandamus commanding the respondents to uphold a public auction of a plot and transfer the same to the petitioners, they being the highest bidder.

(2.) The facts, in so far as relevant for the purpose of present petition, are not in controversy. An auction was held pursuant to Delhi Development Authority (Disposal of Developed Nazul Land) Rules 1981 (hereinafter referred to as-the Rules). The auction was held on 13.11.1987. The petitioner made a bid of Rs.7,03,000.00 which was the highest bid. An amount of Rs.l,75,750.00 was deposited on the same day as earnest money. On 13.11.1987 the DDA issued a letter Annexure 'B' demanding the balance amount of Rs.5,27,250.00 (plus RS.II.00 documentation charges) to be paid within 30 days of the receipt of the letter. The letter was received by the petitioners on 16.11.1987. On 10.12.1987 the petitioners asked for an extension in the period of payment, atleast by two months, stating that the project of the petitioner was under consideration with Bank of Maharashtra and time was needed to arange for the money. On 26.2.1988 the petitioners made another request for extension of time stating that the funds were arranged and so the respondents might issue a fresh demand letter accommodating the petitioners. Similar prayers for extension of time and condoning the delay were repeated subsequently on several occasions. On 1.7.1988 the petitioners also sent a pay order of the requisite amount. However, the DDA informed the petitioners vide letter dated 22.7.1988 that the petitioners' bid having already been cancelled on 25.4.1988 the DDA could not accept the balance amount and the same was being returned. However, the amount was redeposited by the petititoners with the DDA on 24th February, 1989. The fact' remains that the balance amount was not paid by the petitioners within one month of the date of information of acceptance of bid, the reasons apart.

(3.) At this point the relevant provisions of the Rules may be noticed. Al- lotment by auction is governed by Chapter 3 of the Rules. Rules 29, 30 and 32 provide as under:-