VISHAL BUILDERS PRIVATE LIMITED Vs. DELHI DEVELOPMENT AUTHORITY

JUDGEMENT

(1.) This suit raises a text-book question. The conditions of sale at an auction sometimes provide : "No person shall retract his bidding". What is the effect of this ? The facts:

(2.) Messrs. Vishal Builders (P) Ltd., (the Builders) the plaintiff,are a company of engineers and contractors. The defendant Delhi Development Authority (The Authority) is a statutory corporation constituted under s. 3 of the Delhi Development Act, 1957 (The Act). It is a body corporate having perpetual succession and a common seal with power to acquire, hold and dispose of property both movable and immovable. It can sue and be sued in it" name. The objects of this Authority are to promote and secure the development of Delhi according to plan (s. 6).

(3.) There is an area in District Centre Kalkaji which has been named by the Authority as Nehru Place. The Authority advertised the sale of perpetual leasehold rights of land in this area by action for building multi-storeyed commercial flats by the purchasers.