SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Audio Icon Pause Audio Icon
judgment-img

2024 Supreme(Del) 951

IN THE HIGH COURT OF DELHI AT NEW DELHI
MANOJ JAIN, J.
Abhishek Monga - Petitioner
Versus
Delhi Development Authority – Respondent
W.P.(C) 2398 of 2024 & CM APPL. 9909 of 2024 & CM APPL.67793 of 2024
Decided on : 05-12-2024

Advocates Appeared:
For the Petitioner:Mr. Hemant Kumar and Mr. Abhishek Monga, Advocates.
For the Respondent:Ms. Kritika Gupta, Advocate.

Parties are bound by the explicit terms of the tender document, and requests for extensions are invalid if they contravene such conditions.

Headnote:(A) Tender documents - Conditions of tender - E-auction for industrial properties - Requirement for timely payment of bid amounts and restrictions on extensions clearly stipulated in the tender document - Failing to comply leads to automatic cancellation of the bid without notice. (Paras 3-5, 24-25)

(B) Contractual obligations - Parties are bound by the terms laid out in the tender document - A request for an extension of time does not merit consideration if it contravenes explicit conditions. (Paras 24-26)

(C) Circumstances and explanation provided by the bidder regarding the inability to make payment were insufficient and unsubstantiated. (Paras 17-26)

Facts of the case:
The petitioner submitted a successful bid for an industrial plot but failed to deposit the remaining balance within the stipulated time, requesting extensions due to personal circumstances including a family medical emergency.

Findings of Court:
The petitioner failed to provide substantiated reasons for the delay in payment and could not raise grievance against the explicit terms of the tender document.

Issues: Whether the delay in payment warranted an extension despite clear terms in the contract.

Ratio Decidendi: The court held that the strict terms of the tender document must be adhered to, upholding that no extension shall be entertained under any circumstances if not provided for in the original agreement.

Result: Writ petition dismissed.

Table of Content
1. identifies e-auction terms and conditions. (Para 1 , 2 , 3 , 4 , 5 , 6 , 7 , 8)
2. petitioner's request for payment extension discussed. (Para 9 , 13 , 15 , 18)
3. court analysis of petitioner's situation and obligations. (Para 10 , 11 , 12 , 14 , 17 , 19 , 20 , 21 , 22 , 23 , 24 , 25 , 26)
4. dismissal of the writ petition based on lack of merit. (Para 27)
5. conclusion on potential for further action. (Para 28)

JUDGMENT :

MANOJ JAIN, J.

1. The respondent Authority issued a tender document for e-auction for Industrial properties on "as is where is basis.‟

2. The broad terms and conditions for the bidders were described exhaustively in the tender document.

3. Chapter III of the Tender Document contained General Terms and Conditions of e-auction and inter-alia provided that if the payment, in terms of the demand letter, was not deposited within the stipulated period, the bid would stand automatically cancelled, without any further notice. It was also mentioned that no extension of time would be granted for payment of 75% of the bid amount for a period after 270 days from the date of issuance of demand-cum-allotment letter and the relevant clause of such Tender Document reads as under:-

“9. The demand-cum-allotment letter would be sent to the successful bidder immediately after the bid is accepted by the competent Authority. 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) by RTGS/Online Payment through Net Banking/Credit Card/Debit Card falling 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.”

(emphasis supplied)

4. The petitioner participated in the above said e-auction process and was declared successful for Industrial plot at A-43, Keshopur Industrial Area, New Delhi. His bid of Rs. 1,93,94,173/-, being the highest one, was accepted by the respondent. A due communication in this regard was also sent to him and Letter of Intent (LOI) was, accordingly, issued to him on 15th November, 2021.

5. Further, as per the demand-cum-allotment letter dated 06.12.2021, it was categorically mentioned that the amount payable along with the interest, if any, is to be done within the stipulated time frame as provided under the table in such letter. It also bears a specific note which reads as under:-

“3. No extension of time shall be granted for payment of demanded amount for period beyond 270 days from date of issuance of demand cum allotment letter under any circumstances (Date of issuance is included in 270 days granted). In case the payment of balance premium along with interest (If any) is not received within the stipulated period as indicated above, the bid shall automatically stand cancelled and the entire EMD (25% of premium) shall automatically stand forfeited without any notice. In that case, DDA shall be at liberty to re-auction the plot.”

6. The calculation of the balance premium amount payable by the petitioner was also done by the Authority and was duly communicated to the petitioner on 6th December, 2021.

7. Admittedly, the 25% of the bid amount was deposited by the petitioner within the stipulated period.

8. The balance amount of 75% was to be deposited by him by 5th March 2022 (without interest) and by 1st September, 2022 (with the stipulated interest).

9. Before delving further with the averments made in the present petition, it would also be worthwhile to highlight that the petitioner had earlier also filed a writ petition which was registered as W.P. (C) 14060/2022. In the above said writ petition, the petitioner herein sought direction to p

Click Here to Read the rest of this document
1
2
3
4
5
6
7
8
9
10
11
Judicial Analysis

AI

SupremeToday Portrait Ad
supreme today icon
logo-black

An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers

Please visit our Training & Support
Center or Contact Us for assistance

qr

Scan Me!

India’s Legal research and Law Firm App, Download now!

For Daily Legal Updates, Join us on :

whatsapp-icon Back to top