GOPI CHAND Vs. VICE CHAIRMAN D D A

JUDGEMENT

(1.) Briefly the facts are that a plot bearing No. C-2 (u)/7 situated in Pitampura, Residential Scheme, Delhi was auctioned on 6th January' 88 and the complainants gave highest bid of Rs.2,45,000/- for the same. The reserve price of the plot was Rs.2,44,104/-. It is alleged that the bid of the complainants being highest was accepted by the officer auctioning the plot and they were directed to deposit Rs.61,250/- i. e.25% of the bid amount as earnest money in the Bank in the amount of DDA. They deposited the said amount in the Central Bank of India, Vikas Sadan. They were also informed that the further demand letter for the balance amount would be sent to them at their residential address.

(2.) In the month of April 1988 they received a letter dated 15th April 1988 from the DDA to the effect that the bid of the plot in dispute had not been accepted by the Vice-Chairman, DDA and consequently a cheque dated 25th March, 1988 deposited by them on account of earnest money was being returned. It is alleged by the complainants that the said letter was illegal and arbitrary and consequently liable to be quashed.

(3.) The complaint has been contested by the respondent. They have admitted that the plot was auctioned for an amount of Rs.2,45,000/- and the complainants deposited the amount of Rs 61,250/- at the fall of the hammer. The other allegations of the complainants have been denied by them. It is pleaded that the Vice-Chairman was the accepting authority of the bid and as per terms of the auction he could reject the bid even without assigning any reason. It is further pleaded that the Vice Chairman did not accept the bid of the complainants and ordered the refund of the earnest money deposited by them, which was legal and valid.