SHAMRAO DAYARAM LODHI Vs. MUNICIPAL COMMITTEE

JUDGEMENT

(1.) THIS is a second appeal from the decree of Shri S.N. Raina, Second Additional District Judge, Nagpur, confirming the decree of Shri B.M. Sapre, Civil Judge, Class II, Saoner, dismissing the plaintiff -appellant's suit for the refund of a sum of Rs. 650 and awarding to the defendant a sum of Rs. 1,293 -12 -0 by way of set -off.

(2.) THE relevant facts are briefly as follows. The municipal committee, Saoner, advertised plot No. 6 for being leased for a period of 30 years by a public auction to be held on October 10, 1947. That plot was put up for auction on that date and the plaintiff offered a bid of Rs. 2,600 in respect of it. His bid being the highest, he was called upon to deposit one -fourth of the amount bid by him and accordingly he forthwith deposited Rs. 650. The plaintiff did not pay the balance but withdrew his bid and intimated this fact in a letter sent to the municipal committee on October 28, 1947. The ground on which he withdrew his bid was that there was a dispute as to the title of the municipal committee to a portion of the land put up for auction. Thereafter the plot was re -auctioned by the municipal committee at a public auction and it fetched Rs. 2,150. It may be mentioned that the amount fetched on each occasion represented the premium and the purchaser was liable to pay ground rent at the rate of one anna per rupee on the amount of premium.

(3.) THE defendant municipal committee contended that the plaintiff was not entitled to withdraw the bid, that there was a completed contract between the parties and that as loss had been occasioned to the municipal committee by the re -auctioning of the plot and by the failure of the plaintiff to perform his part of the contract, the municipal committee was liable to be reimbursed in respect of the loss. This loss, according to the municipal committee, amounted to Rs. 1,293 -12 -0 on the following computation: Rs. 450 - being the difference between the premium offered by the plaintiff and the premium fetched at the re -auction. Rs. 843/12/ - being the loss of ground rent for 30 years on the amount of Rs. 450.