( 1 ). THE controversy in this appeal is whether rejection of highest bid of the appellant after about one year four months and then again not returning the earnest money of the appellant for about four months after rejection of his bid by Delhi Development A uthority, can be construed to be an act done or purported to have been done in pursuance to the provisions of delhi Development Act, 1957 or any rule or regulation made there under so as to attract Section 53b (2) of the delhi Development Act.

( 2 ) 2. THE relevant facts for determination of this controversy are that the respondent held an open auction on 25th July, 1974 for sale of a cinema plot no. 70, nehru Place, Kalkaji, New Delhi for grant of perpetual lease hold rights. The highest bidder had to pay 25% of the bid amount towards earnest money in cash or in the form of bank draft at the fall of hammer. The balance amount had to be paid within 120 days from the date of issue of communication for the acceptance of the bid.

( 3 ). THE appellant was the highest bidder at the auction held by respondent and he deposited a sum of Rs. 3. 75 lakh being 25% of the bid amount as earnest money. One of the conditions of th