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
| 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
AI
Parties are bound by the explicit terms of the tender document, and requests for extensions are invalid if they contravene such conditions.
Auction /Bid - Bidders participating in the tender process have no other right except the right to equality and fair treatment in the matter of evaluation of competitive bids offered by interested pe....
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 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 court upheld that failure to act on granted extensions in an auction context forfeits eligibility for further relief, emphasizing bid terms create binding obligations.
Bidders in an auction must conduct due diligence and cannot claim relief for undisclosed property conditions if they had the opportunity to inspect before bidding.
Under the Enforcement Rules, a period of 15 days is prescribed for payment of the balance sale consideration. Rule 9(4) of the Enforcement Rules after its amendment with effect from mandated that any....
The court affirms that extensions for auction payments can be granted within the framework established by relevant enforcement rules.
Participants in an auction must adhere strictly to payment timelines; forfeiture of the Earnest Money Deposit is justified for failure to comply with clearly defined contractual terms.
Login now and unlock free premium legal research
Login to SupremeToday AI and access free legal analysis, AI highlights, and smart tools.
Login
now!
India’s Legal research and Law Firm App, Download now!
Copyright © 2023 Vikas Info Solution Pvt Ltd. All Rights Reserved.