SHEELENDRA TEXTILES PRIVATE LIMITED Vs. MADRAS PORT TRUST

JUDGEMENT

(1.) THE third respondent was appointed as their auctioneer by the first respondent to auction certain abandoned goods which were lying in the Port of Madras. THE auction was held on 28-7-1994 and the petitioner participated in the auction through its authorised representative. THE petitioner is the successful bidder in respect of lot No. 560/90, the bid amount being Rs. 10. 50 lakhs. Before ever the auction was confirmed, the first respondent received a letter from one Amith Enterprises stating that they are interested in buying the lot for Rs. 14 lakhs. THE first respondent cancelled the earlier auction and once again the said lot was put to auction. On 30-9-1994 on which date also the petitioner renewed his bid of Rs. 10. 50 lakhs, which is the highest. This time also, before ever the confirmation was made, the same Amith Enterprises wrote a letter to the first respondent, offering to buy the goods for Rs. 12. 50 lakhs. Hence the goods were once again brought to auction on 27-10-1994. This time also the petitioner renewed his bid for Rs.10. 50 lakhs. THE Additional Collector of Customs requested the petitioner to enhance the offer voluntarily to Rs. 12 lakhs and the petitioner also accepted and revised the Offer to Rs. 12 lakhs. THE petitioner came to know that he has been requested to make this Offer of Rs.12 lakhs because once again Amith Enterprises had written to Madras Port Trust Offering Rs. 12 lakhs. THE Collector of Customs had confirmed the Offer of the petitioner and sent the communication to the first respondent by his letter dated 15-11-1994. THE copy of which has been forwarded to the petitioner also. On receipt of the letter from the second respondent, the petitioner paid the entire consideration of Rs. 12 lakhs under two demand drafts dated 1-11-1994 and 15-11-1994 deducting the advance paid already. Even though the entire consideration has been paid, without confirming the bid of the petitioner, the first respondent by their letter dated 24-11-1994 informed the petitioner that the Port Trust has not confirmed the sale and advised the petitioner to collect the two demand drafts sent by him.

(2.) THE petitioner has filed this writ petition praying for certiorarifiedmandamusto quash the said proceedings of the Post Trust dated 24-11-1994 and consequently direct the respondents to release the goods forming the subject-matter of lot No. 560/90 to the petitioner pursuant to the payment of Rs. 12 lakhs made by the petitioner.

(3.) THOUGH no counter has been filed by the third respondent, the learned counsel for the third respondent contended that they are having lien over the property in accordance with Section 150(2)(c) of the Indian Customs Act. The third respondent is not the authority to confirm the sale. But they are only the recommendating authorities. The ultimate acceptance or refusal of the Offer is with the first respondent.