SHARMAN LAL Vs. STATE OF MADHYA PRADESH

JUDGEMENT

(1.) In this petition under Article 226 of the Constitution of India, validity and propriety of orders dated 29.12.2014 (Annexure P/11) and 14.08.2016 (Annexure P/16) are under challenge.

(2.) It is contended on behalf of the petitioner that after being declared the successful bidder for shop No.3, he deposited 25% of the offer amount i.e. 4.5 lakhs on the same day. As he could not deposit the balance 75% of the amount, his allotment was cancelled vide Annexure P/11 and the 25% amount deposited by him as 1st installment was forfeited. Appeal filed against this order was also dismissed vide Annexure P/16. It is urged that the respondents could not have forfeited the first installment of bid amount. At the most, the security deposit could have forfeited, while cancelling the allotment of shop.

(3.) No reply has been filed by respondent No.3. Shri Ashok Lalwani, learned counsel on behalf of respondent No.3 has supported the impugned order. It is argued that, for allotment of shops No.3 and 30 reserved for ex-servicemen, it was mandatory to show the original certificate/ document of service before the authority and to deposit 25% of the offer amount immediately and rest of the amount within a period of 30 days from the notice. On the basis of some complaints regarding identity of the petitioner and to observe fairness in the auction process, petitioner was asked to appear in person with original documents of his service record. He was further asked to deposit the balance amount within 15 days. As the petitioner did not show the original certificate despite being asked nor deposited rest of the 75% of the bid amount, the amount so deposited by him was forfeited as per Rule 6 (I) and (iv) of the Transfer of Immovable Property, Rules, 1996. It is next urged by the learned counsel that determination of amount of security deposit is the prerogative of the council and in the present case, the Council had determined the security deposit as 25% of the offer price. In view of the failure to deposit rest of the 75% of the offer price within 30 days of the date of acceptance of his offer, the amount deposited by the petitioner was forfeited as per Clause (iv) of Rule 6 of the (Transfer of Immovable Property), Rules 1996. It is further urged that retention/forfeiture of the said amount was also on account of loss suffered by the respondent corporation as the shop was kept vacant for 25 months.