A letter of intent signifies acceptance of a bid, forming a binding contract. Subsequent withdrawal due to administrative reasons must be justifiable and non-arbitrary under contractual principles.

JUDGMENT

Sachin Datta, J.

1. By way of the present petition filed under Article 226 of the Constitution of India, the petitioner seeks the following reliefs:

"1. Issue a Writ of Mandamus or Certiorari or any other Writ or direction in the nature thereof thereby quashing the Respondent's letter dated 01.06.2022, vide which the Respondent has cancelled the auction and the bid by the Petitioner, and withdrawn the said plot of land from Auction;

2. Issue a Writ of Mandamus to the Respondent authority to consider and treat the deposit by the Petitioner as a fit and valid deposit as per the requirements towards the grant, through auction of the plot of land being A-1/60, WHS Kirti Nagar, Delhi, and direct the Respondent Authority to accept the remaining bid value and execute a deed of conveyance qua the subject plot in favour of the Petitioner Company;

3. Issue a Writ of Mandamus directing the Respondent Authority to withdraw the Plot A-1/60, WHS Kirti Nagar, Delhi, from 16th Phase of Mega E-auction announced/advertised on 12.06.2022 by Respondent/DDA;

4. Pass such other and further order(s) as this Hon'ble Court may deem fit in the interest of justice."

FACTUAL BACKGROUND

2. The Delhi Development Authority (hereinafter referred to as DDA), came out with the 14th phase of e-auction for the sale of Industrial plots in December 2021, under the Delhi Development Authority (Disposal of Developed Nazul Lands) Rules, 1981. The plot with which the petitioner is concerned is A-1/60, WHS Kirti Nagar, Delhi (hereinafter referred to as the said plot) for which reserved price was fixed as Rs.4,78,48,000/-. The last date for submission of bid along with 5% EMD of the reserve price was 24.12.2021. On 22.12.2021, the Petitioner filed an online application for participating in the e-auction with respect to the said plot along with the 5% of reserve price /first stage EMD i.e., Rs.23,92,400/-.

3. The e-auction was conducted on 29.12.2021 and the petitioner submitted its bid for an amount of Rs.10,91,48,000/- against the reserve price of Rs.4,78,48,000/- in respect of the said plot. The petitioner was informed by the respondent vide email dated 30.12.2021 that it had emerged as the highest bidder, however, it was clearly stated in the said email that the bid was "subject to acceptance by the department/corporation".

4. Thereafter the respondent issued a Letter of Intent (hereinafter referred to as LOI) dated 18.04.2022 to the petitioner accepting the bid of the petitioner, and requesting the petitioner to pay the differential amount i.e., the amount by which 25% of quoted price exceeds the first stage EMD within a period of 7 days i.e., second stage EMD. The said communication dated 18.04.2022 clearly stated that "your bid for the plot has been accepted by the Delhi Development Authority". In the said LOI it was also made clear that in case the second stage EMD is not submitt