( 1 ) THIS is a suit filed by the plaintiff for recovery of sum of Rs. 15,70,081. 50 with pendentelite and future interest at the rate of 18% per annum on account of earnest money amounting to Rs. 10,51,250/- forfeited by the defendant and interest on the deposit of Rs. 5 lakhs retained by the defendant illegally from 15. 3. 82 to November 1982.

( 2 ) IN brief the facts of the case are that the defendant DDA published an advertisement in the newspaper notifying that the auction would be conducted on 22. 12. 81 with respect to various plots namely 6 and 7, 4 and 5 etc. in local shopping Centre, New Friends Colony, New Delhi. With respects to plots No. 4 and 5, the area was s pecified as 135 sq. meter and total floor area was mentioned as 787. 50 sq. meters with number of storeys mentioned as six plus basement .

( 3 ) THE plaintiff company submitted bid forms and gave bid of Rs. 42,05,000/ -. The said bid was accepted by the defendant DDA. The plaintiff company deposited the earnest money of Rs. 10,51,250/ -. Clause 2 (vi) of the terms and conditions of auction required the plaintiff to deposit the balance amount within 15 days of the acceptance of the bid and letter dated 2. 1. 82 was issued to the plaintiff company asking it to deposit the balance amount of Rs. 31,53,750/- within 15 days. The plaintiff company was also required to deposit a sum of Rs. 1,05,125/- on account of yearly ground rent payable in advance along with other documents.

( 4 ) THE plaintiff company failed to deposit the said amount within 15 days. Vide letter dated 15. 1. 82 the plaintiff company asked for extension of 3 months time to pay the entire amount on the ground of tight financial position in the market.

( 5 ) THE said request was turned down by the defendant and final Notice was issued on 11. 2. 82 wherein it was specifically written to the plaintiff to make the payment within 7 days from the date of issue of final notice, failing which the bid shall be cancelled and the earnest money shall be forfeited on account of breach of terms and conditions without any further reference.

( 6 ) IN response thereto, a letter dated 15. 2. 82 was written by the plaintiff again asking for the extension of three months with a request that the said extension may be granted with interest @ 18% per annum payable from the due date i. e. 17. 1. 1982 till the date of deposit. Inspite of this letter, a letter dated 3. 3. 82 was issued by the defendant DDA whereby it asked the plaintiff to deposit the balance payment upto 15. 3. 82 along with interest @ 18% p. a from the due date i. e 17. 1. 82 failing which the defendant shall be constrained to cancel the bid and forfeit the Earnest Money without any further reference.

( 7 ) HOWEVER, the plaintiff did not deposit the required balance amount and rather wrote a letter dated 14. 3. 82 to the defendant wherein the plaintiff asked for further extension of time and requested the defendant to accept the payment in instalments on the ground that the payments in the market had been blocked suddenly. Further, the plaintiff also deposited a sum of Rs. 5 lakhs as part payment towards the balance amount of Rs. 31,53,750/ -. Another letter dated 18. 3. 82 was also written by the plaintiff to this effect. A letter dated 26. 4. 82 was written by the defendant to the plaintiff stating that the request of the plaintiff has not been acceded to though extension has been granted upto 30. 4. 1982. It was further stated in the said letter that in case the required amount is not paid by the stipulated time the defendant DDA shall be constrained to cancel the bid and forfeit the amount of Earnest Money without any further reference.

( 8 ) NO amount was deposited by the plaintiff company and the defendant DDA cancelled the bid and forfeited the Earnest Money. However, the letter dated 15. 5. 82 sent by the defendant DDA through Registered Post in this regard came back unserved and subsequently the Notice of Cancellation dated 1