PODDAR COMMODITIES PRIVATE LIMITED Vs. ARMS

JUDGEMENT

(1.) By consent of the parties the appeal is treated as on day's list and taken up for consideration along with the application for stay.

(2.) The instant appeal arises out of a judgment and order dated 1st May, 2018 passed by a learned Single Judge in WP No.128 of 2016 (M/s. Poddar Commodities Pvt. Ltd. and Anr. vs. Arms and Anr.). By the impugned judgment and order the writ petition stood dismissed and the present appeal has been preferred by the writ petitioners.

(3.) The brief facts leading to filing of the writ petition are as follows : The appellant no.1 was declared as successful bidder in respect of certain movable and immovable properties of M/s. Sri Ganesh Lakshmi Agro Foods being secured assets which were put to sale by the respondent no.1. The terms of the auction provided that payments have to be made in two phases within a time-frame. There was delay in making payment of the specified amounts by the appellant no.1. Moreover, the movables according to the appellants could not be made over and as such the initial offer and acceptance stood modified by a subsequent agreement through exchange of letters restricted only to the immovable property. The appellant no.1 made payment of the entire money along with interest for delayed payment. The respondent no.1 wrongfully rescinded the contract and forfeited 25% of the entire amount deposited by the appellant no.1. This 25% comes to Rs. 66,43,750/-.