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2015 Supreme(Raj) 1892

RAJASTHAN HIGH COURT
Vineet Kothari, J.
Devkinandan Contractor Pvt. Ltd. Sriganganagar - Appellant
Versus
Rajasthan State Agricultural Marketing Board, Jaipur - Respondent
S.B. Civil Second Appeal No. 219 of 1994.
Decided On : 29-10-2015

Advocates:
For the Appellant-Defendant:S.G. Ojha, Advocate.
For the Respondent-Plaintiff:Rekha Borana, Advocate.

An offer can be withdrawn before it is accepted, and the withdrawal of an offer is not subject to any statutory conditions unless otherwise specified.

Headnote:

CONTRACT - OPTION - REVOCATION - OFFER - WITHDRAWAL - EARNEST MONEY - FORFEITURE - STATUTORY CONDITIONS - CONTRACT ACT, 1872, SECTION 5.

Fact of the Case:

The plaintiff, a contractor, submitted a tender for a work to the defendant, a marketing board. The tender was accompanied by an earnest money deposit. The defendant invited all contractors to revise their offers, including the plaintiff. The plaintiff withdrew its original offer and declined to participate in the revised negotiations. The defendant forfeited the plaintiff's earnest money deposit.

Finding of the Court:

The court held that the plaintiff was entitled to withdraw its offer before it was accepted by the defendant. The court found that the defendant's invitation to revise offers constituted a rejection of the plaintiff's original offer. The court also held that the defendant was not entitled to forfeit the plaintiff's earnest money deposit because there was no statutory condition requiring the plaintiff to keep its offer open for a specified period.

Issues: 1. Whether the plaintiff was entitled to withdraw its offer before it was accepted by the defendant. 2. Whether the defendant was entitled to forfeit the plaintiff's earnest money deposit.

Ratio Decidendi: 1. Section 5 of the Contract Act, 1872, permits the withdrawal of an offer before its acceptance. 2. The defendant's invitation to revise offers constituted a rejection of the plaintiff's original offer. 3. There was no statutory condition requiring the plaintiff to keep its offer open for a specified period.

Final Decision: The court dismissed the defendant's appeal and held that the plaintiff was entitled to withdraw its offer and that the defendant was not entitled to forfeit the plaintiff's earnest money deposit.

JUDGMENT

1. (Oral) - The present second appeal under Section 100 of the Code of Civil Procedure has been filed by the appellant-defendant against the judgment and decree dated 28.02.1994 passed by the learned Additional District Judge No.1, Sriganganagar in Civil Appeal (Decree) No. 16/1993 "M/s Devkinandan Contractor (P) Ltd. v. Rajasthan State Agricultural Marketing Board, Jaipur" by which, he reversed the judgment and decree dated 21.07.1993 passed by the learned Additional Munsif & Judicial Magistrate No.1, Sriganganagar in a suit for permanent injunction which was dismissed by the learned Trial Court but the learned First Appellate Court had allowed the suit in favour of the respondent-plaintiff.

2. The defendant-appellant-Rajasthan State Agricultural Marketing Board has filed the present second appeal aggrieved by the reversal of the decree of rejection of the suit by the Trial Court, by the First Appellate Court on 28.02.1994 in Appeal No. 16/1993 "M/s Devkinandan Contractor (P) Ltd. v. Rajasthan State Agricultural Marketing Board, Jaipur" .

3. The learned Trial Court had rejected the suit of the plaintiff-respondent with the following findings returned by it on issue No.1 which are quoted herein below for ready reference:-

fook|d la[;k 1

bl fook|d dks lkfcr djus dk Hkkj izFker% izfroknh ij Mkyk x;k gS izfroknh dks ;g fl) djuk Fkk fd oknh fufonk Lohd'r gksus ls iwoZ viuh vkWQj fonM~k ugha dj ldrsA bl laca/k esa izfroknh }kjk vius tokcnkos esa vafdr fd;k x;k gS fd fufonk vkeU=.k dh 'krksZa ds vuqlkj Bsdsnkj }kjk izLrqr njsa fufonk izLrqr djus dh fnukad ls 'krZ 11 ds vuqlkj 120 fnu rd ekU; jgrh gSA bl izdkj bl nkSjku Bsdsnkj viuh vkQj dks fonM~k ugha dj ldrsA izfroknh dh vksj ls Jh n;kd'".k xks;y dks ijhf{kr djok;k x;k gS l'kiFk dFkuksa esa izdV fd;k gS fd fufonkvksa ds laca/k esa tks 'krZ Fkh og izn'kZ 3 ds lkFk layXu gS blh izdkj oknh us viuh izfrijh{k.k esa tkfgj fd;k gS fd fufonk dh 'krZ ogh gS tks Nih gqbZ gS blesa fonM~kpoy dks dksbZ izko/kku ugha gSA ,slh 'krZ izn'kZ&3 fufonk lwpuk rFkk 'krZ 11 ,u0vkbZ0Vh0 Qksj odZ esa of.kZr gSA

izfroknh ds ;ksX; vf/koDrk dk rdZ gS fd fufonk vkea=.k 'krksZa ds vuqlkj fufonk,a fufonk izkIr gksus dh fnukad ls pkj ekg rd ekU; jgsxh bl nkSjku fufonk fonM~k ugha dh tk ldrhA tcfd oknh ds ;ksX; vf/koDrk dh cgl gS fd vkWQj dks Lohdkj fd, tkus ls iwoZ mls fdlh Hkh le; okfil fy;k tk ldrk gS fufonk Lohd'r gksus ls iwoZ vkWQj dks fonM~k ugha djus ds laca/k esa ;fn dksbZ 'krZ yxkbZ tkrh gS rks og fof/k ekU; ugha gS vius bl rdZ ds leFkZu esa ,0vkbZ0vkj0 1988 nsgyh 224 rFkk ,0vkbZ0vkj0 1972 ,e0ih0 ist 131 U;kf;d n'"Vkar izLrqr fd,A

eSaus ijLij fojks/kh rdksZa ,oa fordksZa ij lexzrk ls fopkj fd;kA mDr U;kf;d n'"Vkarksa dk lknj voyksdu fd;kA ,0vkbZ0vkj0 1972 ,e0ih0 ist 131 o ,0vkbZ0vkj0 1988 nsyh 224 U;kf;d fofu'p; esa fof/k dk ;g fl)kUr izfrikfnr fd;k x;k gS fd fdlh izLrko dks Lohdkj fd, tkus ls iwoZ izLrko dk [k.Mu fd;k tk ldrk gS izLrqr U;kf;d n'"Vkarksa esa gks U;kf;d fl)kUr izfrikfnr fd, x, gS muls eSa lknj lger gwa ysfdu izdj.k esa izLrqr ifjfLFkfr;ksa esa izkFkhZ dks U;kf;d n'"Vkarksa ls dksbZ enn ugha feyrh D;ksafd fufonk ekU=.k dh izR;{k'krZ ds vuqlkj fufonk 120 fnu rd fonM~k ugha dh tk ldrh FkhA ;g 'krZ izR;{k Fkh rFkk oknh dks bldh iwoZ esa tkudkjh FkhA izLrqr nLrkost izn'kZ&3 rFkk ,u0vkbZ0Vh0 Qksj odZ dh 'krZ 11 ds voyksdu ls Hkh izdV gS fd fufonk pkj ekg rd ekU; jgsxh rFkk blls iwoZ vkQj fonM~k ugha dh tk ldrhA ;fn iwoZ esa fonM~k dh tkrh gS rks vfxze/ku tCr fd;k tk ldrk gS ;g Hkh Li"V gS fd An option given for value is not revocable. It is an after together with a contract that the offer will not be revoked during the time, if any, specified in the option.

bl izdkj ewY; ds fy, fn;k x;k fodYi izfr lgj.kh; ugha gSA mijksDr foospu ls Li"V gS fd izR;{k 'krZ ds vuqlkj oknh izLrqr fufonk dks pkj ekg ds Hkhrj gS fd izR;{k 'krZ ds vuqlkj oknh izLrqr fufonk dks pkj ekg ds Hkhrj fonM~k ugha dj ldrk vr% bl fook|d dk fu.kZ; izfroknh ds i{k esa rFkk oknh ds foi{k esa fd;k tkrk gSA

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