The acceptance of delayed payments by an authority constitutes an implicit extension of compliance timelines, nullifying subsequent cancellations based on non-adherence to original dates.

JUDGMENT (ORAL)

C. Hari Shankar, J.

1. The letter dated 17th May 2022, forming subject matter of challenge in the present petition, preferred by the petitioner under Article 226 of the Constitution of India, has been issued in the context of a tender, floated by the respondent-DDA for sale of industrial properties by e-auction.

2. The issue in controversy being short, detailed allusion to facts may conveniently be eschewed.

Facts

3. A notice inviting tender for sale of industrial properties by e- auction was issued by the DDA on 27th September 2020. The terms of the bid required prospective bidders to submit 25% of the bid premium in two stages, with 5% to be deposited before participation in the e-auction programme and the remaining 20% to be submitted within seven days from issuance of the Letter of Intent (LoI) by the competent authority, accepting the bid of the bidder.

4. Clause 9 in Chapter II of the tender documents, dealing with the "Technical Terms and Conditions of online e-auction" envisaged issuance of Letter of Intent to the H1 bidder within seven days of approval of the acceptance of bid by the competent authority. Chapter-III of the tender documents set out "General Terms & conditions of the e-auction". Clauses 9 and 10 in Chapter-III read thus:

"9. The demand-cum-allotment letter would be issued to the successful bidder through the BHOOMI Portal after receipt of second stage EMD payment and other requisite documents and verification of second stage EMD. The highest bidder is required to make payment of balance 75% bid amount, as demanded vide said demand letter referred to above, within 90 days from date of issuance of demand letter (without interest/within 270 days from the date of issuance of demand letter (subject to payment of interest on the balance amount @ 10.00% p.a. during the extended period) through payment tab provided in BHOOMI Portal failing which the bid will automatically stand cancelled without any further notice. No extension of time will be granted for payment of 75% of bid amount for period after 270 days from the date of issuance of demand-cum-allotment letter.

Note: The successful bidder may pay the cost of the plot by availing loan facility from financial institutions for which the DDA offer NOC/mortgage permission.

10. In case, the highest bidder fails to deposit the balance 75% amount within the stipulated period, as mentioned in the demand letter, the bid shall automatically stand cancelled and the Earnest Money shall stand forfeited without any further notice. In that eventuality, the Competent Authority shall be competent to re-auction the Industrial plot."

5. The petitioner paid 5% of the bid amount at the time of obtaining bid documents and paid the balance 20%, thereby completing the payment of EMD of 25%, on 23rd November 2020.

6. On 10th March, 2021, the following letter was issued to the petitioner, by the DDA:

"Delhi Development Authority
Industrial Branch
A Block, Ist Floor, Vikas Sadan, INA, New Delhi-23

File No. F51/(16)/2020/IND/2104

Date of Generation: 03/03/2021

Comp. No. /2777

Date of issuance: 10/3/2021

To

Jatinder Kumar Wadhwa & Neelam Wadhwa

F-263, First Floor, Vikaspuri, Delhi

Sub: E-auction of plot no. 86, Pocket/Block-C admeasuring 100.00 sq. mtrs. Situated in Mangolpuri Phase-I.

Dear Sir/Madam,

With reference to the E-Auction program held on 28.10.2020 for the purchase of the freehold rights of the above Industrial plot, I am directed to inform you that y