IN THE HIGH COURT OF DELHI
Navin Chawla, Asha Menon, JJ.
Delhi Development Authority - Appellant
Versus
Vikas Goyal - Respondent
LPA 191 of 2021 & CM Appls. 18854-55 of 2021
Decided On : 18-06-2021
| Table of Content |
|---|
| 1. challenge to interim order details (Para 2 , 3 , 4) |
| 2. arguments about payment extensions and obligations (Para 6 , 10) |
| 3. clarification of communication and obligations (Para 8 , 9 , 11) |
| 4. court's evaluation of argument validity (Para 12 , 13 , 14) |
| 5. modification of prior order and auction process (Para 15 , 16) |
JUDGMENT
Navin Chawla, J. (Oral)
This hearing has been held through video conferencing.
CM APPL. 18854/2021 (Exemption)
Allowed, subject to all just exceptions.
LPA 191/2021 & CM APPL. 18855/2021
1. As the learned counsel for the respondent has appeared on an advance notice and has been heard in the appeal, we dispose of this appeal at this stage itself.
2. This appeal has been filed by the appellant challenging the interim order dated 13.05.2021 passed by the learned Single Judge in W.P. (C) No.5138/2021 filed by the respondent herein inter alia directing as under:
"7. The petitioner is ready and willing to pay the remaining amount of Rs.1,63,12,000/- (less Rs.5,25,600/- already paid. Without prejudice to the rights and contentions of the parties, let the said monies be deposited with the DDA by the petitioner within 3 weeks. The petitioner's right and position in the said plot of land shall remain secured till the next date."
3. The learned counsel for the appellant has drawn our reference specifically to the e-mails dated 04.11.2020, 11.12.2020 and 19.12.2020 addressed by the respondent to the appellant, to contend that the plea of the respondent that the Letter of Intent (hereinafter referred to as `LOI') cannot be given effect to for it did not mention the number of the plot allotted to the respondent is, on the face of it, incorrect inasmuch as the respondent was well aware of the plot allotted to him and had in fact been seeking extension of time to make the payment on account of financial difficulties arising out of Covid.
4. On the other hand, the learned counsel for the respondent submits that the fact that the LOI does not mention the exact plot allotted to the respondent is evident from a reading of the said document.
5. He further submits that the Letter of Intent has not been communicated to the respondent and the appellant has not even placed on record the purported e-mail dated 29.04.2020 along with which it claims to have sent the LOI.
6. He submits that while two extensions were granted for the bidders for making payment of the balance 75% of the bid amount, the extension for making the initial deposit of the 25% was granted only once, thereby causing discrimination.
7. The learned counsel for the respondent further submits that in terms of the Impugned Order, the respondent has also issued a cheque qua the amount payable in terms of the said order in favour of the appellant.
8. We are not impressed with the submissions made by the learned counsel for the respondent. The e-mail dated 04.11.2020 of the respondent reads as under:
"I had applied through e-Auction No. Phase VII for INDUSTRIAL PLOT SI. No. 79 Plot No. C-59 Mangolpuri, Ph-I (100 mtr). I was the highest bidder @ INR 1,63,12,000 as on 20th November 2019. The EMD of INR 5,25,600 was paid on 15 November 2019.
I waited for a long time for the letter of intent, and later discovered that the letter of intent No.F.1 (Misc.) IndustrialAction Plots/DDA/2017/614 had been uploaded on the online portal on 29 April 2020. There was no intimation via email or message. Since the letter of Intent was uploaded in the Covid lockdown period, it was not duly communicated to us. Also the time extended by your good self was not sufficient to meet out the payments as there was a cash crunch due to the pandemic.
However, I am interested in purchasing the plot and am in the position to make the necessary payments along with interest, if any. Thus, I want an extension so that I can pay for the plot now. Let me know how to proceed further and allow me to make the payments.
Kindly consider the request in these unprecedented times."
9.
AI
The court affirmed that claims of non-communication regarding the Letter of Intent were inconsistent with prior communications, impacting the obligations for timely payments.
The main legal point established in the judgment is that a vigilant claimant is expected to be aware of policy changes and pursue claims promptly, and failure to avail the benefit of extended time gr....
The court upheld that failure to act on granted extensions in an auction context forfeits eligibility for further relief, emphasizing bid terms create binding obligations.
Disputes from e-auction procedures must be resolved through arbitration, as factual disagreements cannot be settled through judicial review.
The central legal point established in the judgment is the importance of adhering to the dispute resolution mechanism provided in the bid document, which in this case, directed the parties to settle ....
The court ruled that failing to meet a stipulated payment deadline invalidates any claims for extension based on subsequent communications, reinforcing the binding nature of auction terms.
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....
The court emphasized that the failure to communicate a stay order rendered the DDA's actions arbitrary, upholding the petitioner's continuous readiness and willingness to complete the contract.
Parties are bound by the explicit terms of the tender document, and requests for extensions are invalid if they contravene such conditions.
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