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SANJIV KHANNA, S. V. N. BHATTI
Jammu Development Authority – Appellant
Versus
S. Paramjeet Singh – Respondent
ORDER :
Civil Appeal @ SLP(C) No. 4050/2023
1. Leave granted.
2. This appeal by the Jammu Development Authority,1[For short, “JDA”.] takes exception to the judgment dated 02.12.2022 passed by the High Court of Jammu & Kashmir and Ladakh at Jammu.
3. Respondent no. 1 - S. Paramjeet Singh had participated in a public auction held on 12.04.1999. His bid of Rs.8,30,000/-(Rupees eight lakhs thirty thousand only) for purchase of plot no. 244, Sector 1/Sector 1A, Trikuta Nagar Housing Colony, Jammu,2[For short, “Subject Property”.], was accepted. By letter of intent dated 26.05.1999, the JDA had called upon respondent no. 1 - S. Paramjeet Singh to deposit 50% of the premium within 30 days from the date of issue of the letter of intent, and the balance 50% within 60 days thereafter. In case of default beyond six months, interest at the rate of 18% per annum would be charged. Further, on failure, the allotment shall be cancelled, and the earnest money and the first installment shall stand forfeited.
4. Respondent no. 1 - S. Paramjeet Singh deposited 50% of the premium of Rs.4,15,000/-(Rupees four lakhs fifteen thousand only) within 30 days after issue of the letter of intent dated 26.05.1999. He
Cancellation of allotment due to payment defaults by the winning bidder in a public auction.
The principle of natural justice, which requires affording a reasonable opportunity to present one's case, was central to the court's decision.
The court affirmed that failure to comply with payment terms in a contract justifies forfeiture of earnest money, and a claim for refund is not valid under such circumstances.
The cancellation of allotment was justified due to the petitioner's failure to comply with payment terms, emphasizing the importance of adhering to auction conditions and public interest.
The court upheld the legality of forfeiting auction deposits due to non-payment, affirming that the auction terms did not require a hearing prior to cancellation.
The court held that no hearing is required prior to cancellation of allotment when auction terms do not provide for it, and the allotment can be cancelled for non-payment.
The court upheld the provisions of the Jaipur Development Authority Act, 1982, and the applicable interest rates under the Raj. Improvement Trust (Disposal of Urban Land) Rules, 1974, in determining ....
Concept of doctrine of principles of natural justice-Audi Alteram Partem and its application in judicial, quasi judicial and administrative system is not new. It no doubt is a procedural requirement,....
The main legal point established in the judgment is the importance of strict compliance with auction terms and conditions, balanced with the consideration of communications and extensions provided by....
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