Yogeshwar Dayal, J.

( 1 ) THIS order will dispose of Civil Writ Petition Nos. 2833 and 2834 of 1986. Since the facts of both the petitions are identical facts of CWP No. 2833/86 are taken.

( 2 ). This petition is filed by M/s. Rishi Gagan Constructions (P) Ltd. and one of its Director Sh. Manmohan Singh for quashing an order dated 8th October, 1986 intimating the petitioner No. I that since they have failed to deposit the balance amount of premium in respect of the plot in dispute within the stipulated period, the bid has been cancelled and the amount of earnest money has been forfeited.

( 3 ). This order was passed by Director (CL) of Delhi Development Authority, a statutory authority constituted under the Delhi Development Act, 1957, (hereinafter referred to as the act ). Under Section 22 of the Act the Central Government has placed certain Nazul land at the disposal of the Delhi Development Authority constituted under the aforesaid Act and thereafter such Nazul lands have to be dealt with by the DDA according to Rules and directions given by the Central Government in this behalf. The Central Government has notified the Delhi Development Authority (Disposal of Developed Nazul land) Rules, 1981 (hereinafter called the rules ) and these rules provide for the manner of dealing with nazul land developed by or under the supervision of the DDA.

( 4 ). The DDA advertised a scheme for development of Janakpuri District Centre in West Delhi and also for that purpose notified that certain plots of land on which multi-storeyed structures were to be permitted to be built were to be auctioned. The auction was to be held in accordance with the Rules. The terms and conditions of the auction as announced under the aforesaid Rules contemplated that the officer conducting the auction shall normally accept, subject to the confirmation by the Vice-Chairman, the highest bid offered at the fall of hammer at the auction and the person whose bid has been accepted shall pay as earnest money, a sum equivalent to 25% of his bid either in cash or by bank draft in favour of the Delhi Development Authority. It also provided that after the acceptance of the bid, the bidder will be informed of such acceptance in writing and the bidder shall within 90 days thereof pay to the Delhi Development Authority the balance amount of the bid in cash or a bank draft in favour of the DDA. If the bid is not accepted, the earnest money will be refunded to the bidder without any interest unless it may have been forfeited under para 2 (viii ). Para 2 (viii) of the Terms, inter alia, stated that, "a person who fails to pay the balance amount of his bid to the Authority within 90 days of acceptance of the bid or within such period as may have specified otherwise in accdance with the Delhi Development Authority (Disposal of Developed Nazul land) Rules 1981, shall forfeit the earnest money and it shall becompetent for the Vice-Chairman to re-auction the plot". It is not necessary to refer to other terms and conditions of the auction.

( 5 ). The plot in dispute, namely, plot No. 8, Block A-3, local shopping Centre, Janakpuri, New Delhi which was to be built upon subject to controls of DDA, was put to auction on 2nd April, 1986 on the aforesaid terms Petitioner No. I made a bid of Rs. 8,72,000 for the said plot and as per terms and conditions of the auction deposited a sum of Rs. 2,18,000 with respondent No. 1 by bank draft dated 2nd April, 1986 as earnest money being 25% of the total amount of bid. The petitioner No. I received on 2nd June, 1986 a letter No. F. 22 (12)/86-lmpl/comml. purported to be dated 22nd May, 1986 from respondent No. 1 (DDA) whereby petitioner No. I was informed that their bid of Rs, 8,72,000 offered in the auction held on 2-4-1986 had been confirmed by the Vice-Chairman, Delhi Development Authority. Petitioner No. 1 was requested to deposit within 90 days from the date of issue of that letter a sum of Rs. 6,54,050 being the balance amount payable towar

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