The main legal point established in the judgment is that misrepresentation in an auction notice and retention of bid amount by the bank would amount to unjust enrichment, rendering the auction sale illegal.

Shree Chandrashekhar, J. - After having failed in his attempt before the Writ Court, seeking refund of Rs.31,25,000/- the appellant-writ petitioner has approached this Court in the instant Letters Patent Appeal.

2. Heard.

3. Mr. V.P. Singh, the learned Senior counsel for the appellant referring to E-auction notice dated 01.03.2016 for sale of the residential property MIG-D-120 at Harmu Housing Colony, contends that the respondent- Allahabad Bank made a representation to the public at large which was patently false and thereby the appellant was misled. E-auction held pursuant to notice dated 01.03.2016 was illegal and therefore, the bid amount deposited by the appellant must be refunded by the respondent-Bank. It is further contended that after the respondent-Bank fully recovered the secured debt from the borrower, forfeiture of Rs.31,25,000/- by the Bank on the ground that the appellant-successful bidder has failed to deposit the balance 75% bid amount by the stipulated date, would nothing but, be unjust enrichment.

4. Per contra, Mr. P.A.S. Pati, the learned counsel for the respondent-Allahabad Bank, referring to the terms and conditions of E-auction notice dated 01.03.2016, submits that once the appellant participated in E-auction and he was declared successful bidder, he is bound under the terms and conditions of E-auction. It is contended that E-auction dated 07.04.2016 ultimately failed on account of failure of the appellant to deposit the balance 75% of the bid amount, and in consequence thereof, in terms of the conditions of E-auction, 25% of the bid amount deposited by the appellant has to be forfeited. Refuting the allegation of misrepresentation and fraud by the Bank, the learned counsel submits that the property under auction could have been inspected by the intending bidders, who upon inspection of the property could have decided to participate or not to participate in E-auction.

5. Dr. Ashok Kumar Singh, the learned counsel appearing for the respondent-Housing Board, opposing E-auction of the lease-hold property which belongs to Jharkhand Housing Board contends that without seeking prior approval of the Housing Board and consenting to the terms and conditions, if any, of the Housing Board, the property under E-auction could not have been put on sale.

6. Briefly stated, E-auction notice dated 01.03.2016 was issued for "sale of immovable property mortgaged to Bank under Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002", which comprised land and building constructed over MIG-D-120, Harmu Housing Colony, Argora, Ranchi, acquired by one Bijay Kumar Pandey. The property was put on auction-sale on "as is where is basis", "as it is where it is basis" and "whatever there is basis", for realisation of Bank's dues with interest. The secured debt amounted to Rs.53,50,374/- which was to be realised along with interest, costs, charges and expenses. The date of auction was fixed on 07.04.2016. The appellant deposited the Earnest Money Deposit (EMD) of Rs.7,00,000/- through Demand Draft on 30.03.2016 and he was declared successful bidder in the bid held on 07.04.2016. The respondent-Bank informed the appellant on 08.04.2016 that he has been declared highest bidder, and required him to deposit 25% of the bid amount. The appellant deposited Rs.24,25,000/- on 08.04.2016 which was 25% of the bid amount after deducting Rs.7,00,000/- which was deposited by him as EMD. Thereafter, vide letter dated 20.04.2016 the authorised officer-respondent no.2 directed the appellant to pay the balance bid amount. In the meantime, the appellant approached this Court in W.P.(C) No.2075 of 2016 for quashing of letter dated 20.04.2016. The writ petition was disposed of on 22.04.2016 granting liberty to the appellant to deposit the balance amount by 27.04.2016. The respondent-Bank was directed