AGGARWAL ASSOCIATES Vs. DELHI DEVELOPMENT AUTHORITY

JUDGEMENT

(1.) The petitioner took part in the auction held by the DDA on 31.3.1994 and it was the successful bidder for the entire C.S.C. Nand Nagri Block- B, Delhi plot measuring about 1268.32 sq. mts. for Rs. 30 lakhs. As per the conditions of auction, he deposited Rs. 7.50 lakhs, being the 25% of the bid money. After having deposited the 25% of the money, the petitioner did not pay the balance. On 4.4.1994 the petitioner wrote to the DDA for the removal of the tubewell in the middle of the plot and re-road the drains running to the center of the plot. "The DDA by letter dated 7.4.1994 called upon the petitioner to pay 75% of the bid amount being Rs. 22,50,050.00 (Rs. 50.00 was towards documentation charges). On 13.4.1994 the petitioner wrote to the DDA in the following terms :

(2.) The learned Counsel Mr. Vashisht submitted that the DDA was not in a position to give possession of the property, therefore, the petitioner was fully justified in not paying the balance 75%. The DDA has no right to forfeit the sum of Rs. 7,50,000.00 . The learned Counsel for the DDA submitted that the auction conditions provide for forfeiture and the petitioner did not act in accordance with the terms and conditions of the auction notice, the DDA was always ready to hand over possession of the property and, as a matter of fact, the petitioner by letter dated 16.4.1994 asked for extension of time by 45 days for the payment of balance amount. The possession of the plot was always with the DDA and in terms of Clause 2(viii) of the Terms and Conditions of the Auction, the auction was liable to be cancelled and the DDA was entitled to pass an order forfeiting the earnest money.

(3.) The Supreme Court had an occasion to consider the question of the right of the DDA to forfeit the amount in Delhi Development Authority v. Grishthapana Cooperative Group Housing Society Ltd., 1995 Supp (1) SCC 751. The facts as noticed by the Supreme Court are this :