IMPORTANT POINTS
(1) Whenever there is such a business/commercial transaction, it is always to be examined on commercial principles where equity has no role to play.
(2) Where lease deed was to be compulsorily registered under Section 17 of Registration Act, 1908, it was nowhere open to be altered or amended even by High Court in exercise of its jurisdiction under Article 226 of Constitution.

JUDGMENT :

Rastogi, J.

1. The instant appeal is directed against the judgment and order dated 21st April, 2011 passed by the Division Bench of the High Court of Madhya Pradesh, Bench at Gwalior with the following directions:

i) The Respondents are directed to execute the lease deed in favour of the petitioner of remaining area of the land i.e. 9625.50 sq. mtr. in accordance with the acceptance of his offer of total plot area 27887.50 sq. mtr.

ii) The petitioner shall be liable to make payment of interest from 17.8.2001 upto 29.3.2006 when the lease deed was executed in favour of the petitioner excluding the period of 27.5.2004 to 29.3.2005.

iii) The Respondents are at liberty to calculate the amount of interest accordingly after verification of the amount which has been paid by the petitioner.

iv) The order be complied with within a period of three months from the date of receipt of the copy of the order.

2. The facts of the case culled out from the record are that the appellants, according to the land disposal rules, issued an advertisement and invited bids for grant of leases of different plots under the transport city scheme. The respondent was also one of the bidders for MC-2 (Market Complex-2) plot area 27887.50 sq. meters. The offer of the respondent @Rs.725/- per sq. meter being the highest bid was finally accepted. Consequently, a letter of allotment dated 29th September, 1997 was issued in favour of the respondent whereby it was informed that the bid of the respondent was found to be the highest and it had been decided to lease out the plot area of 27887.50 sq. meters in his favour for a consideration of Rs.2,06,67,966/- and the auction bidder/respondent was directed to deposit a sum of Rs.1,91,67,966/- upto the period of 31st October, 1999 in addition to the earnest money of Rs.15 lakhs in four instalments in the following manner:

(i) Rs.51,66,922/- by 31.10.1997 (for 25% amount)

(ii) Rs.51,66,922/- by 30.06.1998 (for first instalment)

(iii) Rs.51,66,922/- by 28.10.1999 (for second instalment)

(iv) Rs.36,36,990/- by 31.10.1999 (for third instalment)

3. The letter of allotment contained a rider that the market complex has to be constructed in accordance with the sanctioned plan by the Gwalior Development Authority (hereinafter being referred to as the “Authority”) and construction work has to be completed within the period of two years with a further stipulation that failure to deposit the instalments in terms of the conditions of the bid document, the security amount shall be forfeited.

4. It is not disputed that the respondent deposited a total sum of Rs.2,02,18,437/- from September, 1997 to the last instalment on 25th August, 2005. The amount deposited by the respondent on various dates be stated as under:

5. It reveals from the record that, in the meanwhile, the respondent requested for revising the layout plan in order to enable to deposit the requisite amount with the Authority and the layout plans were also revised, but finally the amended layout plan was accepted by the Authority on 17th August, 2001. It is also not disputed that despite the respondent failed to deposit the instalments in terms of conditions of the bid document by 31st October, 1999 and the final amount being deposited on 25th August, 2005, no action was taken by the appellants either for cancellation of the bid or for forfeiture of the amo