IMPORTANT POINT
A concluded contract arises from an unqualified acceptance of an offer, but acceptance of a refund can imply rescission of that contract, negating any claims for its enforcement.

JUDGMENT/ORDER

S.V.GANGAPURWALA, J. - The Petitioner participated in the tender process initiated by the Respondents for auction of agricultural land and was declared as a highest bidder at Rs.66,00,000.00 (Rupees Sixty Six Lacs Only). The Petitioner deposited the earnest money of Rs.6,63,000.00 (Rupees Six Lacs Sixty Three Thousand Only). The Petitioner thereafter deposited 25% of the amount i.e. Rs.9,75,000.00 (Rupees Nine Lacs Seventy Five Thousand Only). The Petitioner, in all, had deposited Rs.16,53,000.00 (Rupees Sixteen Lacs Fifty Three Thousand Only). Subsequently, Respondent No.3, under the order dtd. 18/8/2022 cancelled the auction conducted by Respondent No.2 due to technical reasons. Under the said order dtd. 18/8/2022 cancelling the auction, Respondent No.2 also returned the amount of Rs.16,53,000.00 (Rupees Sixteen Lacs Fifty Three Thousand Only) deposited by the Petitioner under cheque No.277513 dtd. 18/8/2022. The Petitioner assails the order dtd. 18/8/2022 cancelling the auction.

2. Mr.Dhond, the learned Senior Advocate for the Petitioner in his usual lucid manner canvassed his submissions and put-forth following propositions.

a) The concluded contract had come into an existence between the parties. Respondent No.2, 3 and 4 had accepted the offer of the Petitioner without any qualification and reservation. 25% amount deposited by the Petitioner was also accepted. Respondent No.2, 3 and 4 have signed the Bid Acceptance Form thereby resulting in concluded contract. It was not open for the Respondents to resile from the same. Resiling from the said contract would amount to breach of contract and the same is not permissible.

b) The action of the Respondents in cancelling the auction is arbitrary and perverse. The reserve price under the advertisement was fixed at Rs.26,51,000.00 (Rupees Twenty Six Lacs Fifty One Thousand Only). The same was fixed after considering the valuation by the Valuation Officer of the Income Tax Department. The property offered was on "as is where is" and "as is what is" basis. The sale of the property was advertised in two local newspapers viz; (i) Voice of Vidharbha; and (ii) Times of India, Nagpur Edition, both of which have wide circulation in Akola District. Tender notice was also put up on website of Respondent No.2. The Petitioner was the highest bidder in the auction and offered sum of Rs.66,00,000.00 (Rupees Sixty Six Lacs Only) which is significantly higher than the reserve price of Rs.26,51,000.00 (Rupees Twenty Six Lacs Fifty One Thousand Only). The said bid was accepted and the Bid Acceptance Form dtd. 3/6/2022 was issued to the Petitioner.

c) In terms of the auction, the Petitioner had already paid earnest amount of Rs.6,63,000.00 (Rupees Six Lacs Sixty Three Thousand Only). The Petitioner thereafter tendered the first installment of Rs.9,75,000.00 (Rupees Nine Lacs Seventy Five Thousand Only) by his letter dtd. 1/7/2022 for 25% of total bid price. The notice of cancellation dtd. 18/8/2022 is served upon the Petitioner. The said decision was taken relying upon Clause 19 of the Standard Terms and Conditions. The said clause 19 does not permit cancelling of an auction after a bid has been accepted and a contract has come into existence. The Petitioner objected to the said cancellation by his letter dtd. 23/8/2022 and sought reconsideration of the decision. The Petitioner in the said letter emphasized that the Petitioner was ready and willing to pay the entire amount which is well within the deadline to pay. The Petitioner's request was turned down by Respondent No.2 under communication dtd. 26/8/2022 without ascribing any reason. The Petitioner thereafter served Advocate's notice dtd. 12/9/2022 calling upon Respondent No.2 to withdraw the cancellation. The said notice was responded by Respondent No.2 through letter dtd. 19/9/2022. In the said letter, Respondent No.2 sought to justify the decision to cancel on a completely new ground i.e.

"while conducting the auction it was felt tha