AJAY ENTERPRISES P LTD Vs. MCD

JUDGEMENT

(1.) THE present writ petition is filed by the petitioners praying inter alia for a declaration that the respondent No. 1/mcd has no power and authority to forfeit 25% of the bid amount deposited by the petitioners towards the auction of two commercial plots bearing Nos. D-3 and D-4, at najafgarh Road Community Centre, Opposite Milan Cinema, Karampura, delhi and declare that the said forfeiture is illegal. In the alternative, a declaration is sought by the petitioners to the effect that there was no proper completed auction for want of approval of the highest bid by the respondent/mcd and hence the amount received by the respondent No. 1 has to be refunded to the petitioners with interest payable @ 18% per annum. The petitioners have also sought quashing of notices, including the notice dated 24. 10. 1980 issued by the respondents, forfeiting the earnest money deposited by the petitioners in respect of the aforesaid plots and for re-auctioning of the said plots. The last relief sought by the petitioners is for directions to the respondent/mcd to carry out development of the community Centre, in accordance with law before demanding the balance of the premium in respect of the bid amounts for the two plots from the petitioners, or in the alternative, for directions to the respondent/mcd to refund to the petitioners, the earnest money received in respect of the aforesaid plots.

(2.) AT the outset, counsel for the petitioners stated that he did wish to press for the relief of declaration to the effect that there was no proper completed auction for want of approval of the highest bid by the competent authority, as the MCD had been superceded by the Government of India, at the relevant time under the provisions of Section 490 of the Delhi Municipal corporation Act, on the ground that the said issue had been conclusively decided by a judgment of the Division Bench dated 25. 07. 2008 in two appeals, registered as RFA (OS) Nos. 12 and 14 of 1983 arising out of a common judgment and decree dated 9. 3. 1983 passed in two connected suits instituted by two private parties against the MCD, pertaining to two commercial plots put to auction by MCD in the year 1976, in the very same commercial Complex, i. e. , the Najafgarh Road Community Centre. Vide judgment dated 25. 7. 2008, the effect of dissolution of the MCD was duly considered and the Division Bench concurred with the findings of the Single judge to the effect that even though the Corporation stood superceded, the central Government, by virtue of a Notification, had empowered the commissioner, MCD to exercise the powers and perform the duties conferred upon the Corporation by or under the Act. This leaves the relief with regard to refund of the earnest money deposited by the petitioners and forfeited by the respondents.

(3.) THE facts of the case, when encapsulated, are that in May 1979, the respondent/mcd issued an advertisement in the National newspapers proposing to auction eight commercial plots situated at Najafgarh Road community Centre, Opposite Milan Cinema, Karampura, Delhi. The terms and conditions of the auction stipulated that the successful bidder would pay 25% of the bid amount at the fall of the hammer and the balance was to be paid within two months from the date of the receipt of the acceptance letter. The relevant extract of the advertisement issued by the respondent/mcd in the press reads as below :