The withdrawal of the Letter of Intent was found to be in line with the E-auction policy and reflective of a transparent and fair decision-making process.

JUDGMENT

Tejinder Singh Dhindsa, J. - Instant writ petition is directed against the memo dated 14.10.2020 (Annexure P-3) issued by the Estate Officer, Haryana Shehri Vikas Pradhikaran, Rewari, in terms of which Letter of Intent for Booth No.41, Sector 3, Part-2 stands withdrawn. Further challenge is to the communication dated 17.11.2020 (Annexure P-4) informing the petitioner as regards the reasons for withdrawal of the Letter of Intent.

2. Counsel submits that petitioner had participated in an Eauction process that had been initiated by the Haryana Shehri Vikas Pradhikaran (hereinafter referred to as the respondent). Since petitioner was desirous to bid for a commercial booth, the base price of which had been fixed as Rs.19,33,528/-, five per cent of the base price i.e. Rs.96,700/- was made towards Earnest Money Deposit, apart from a service charge of Rs.1,000/- on 13.08.2020. Petitioner submitted a bid of Rs.19,53,528/-. Since petitioner was H-1, the highest bidder, he deposited another 5 % i.e. an amount of Rs.98,652/- on 17.08.2020 as per terms and conditions laid down by the respondent. On 28.09.2020 petitioner was issued a Letter of Intent pertaining to the booth in question calling upon him to deposit 15% of the bid amount within a period of 30 days from the receipt of the letter. It is urged that even prior to the 30 days period having lapsed, an amount of Rs.1,95,352.80/- was credited back in the bank account of the petitioner by the respondent. Thereafter petitioner received memo dated 14.10.2020 (Annexure P-3) withdrawing the Letter of Intent. The petitioner also received letter dated 17.11.2020 (Annexure P-4) disclosing the basis for withdrawing of the Letter of Intent i.e. the bid submitted by the petitioner being lower than the reserve price that had been decided by the Committee constituted for the purpose i.e. Rs.23,00,000/-.

3. It is against such brief factual backdrop that the instant petition has been filed assailing Annexures P-3 and P-4.

4. Counsel has argued that the petitioner had met all the terms and conditions as laid down by the respondent for conduct of the E-auction and inspite of there being no mis-representation on his part the Letter of Intent has been withdrawn arbitrarily. Further contended that it was open for the respondent to have cancelled the allotment and to have forfeited whole or part of the amount paid by a bidder only in the event of default or breach of the terms and conditions of the auction as well as those contained in the allotment letter. In the present case, petitioner has not defaulted in any of the conditions stipulated by the respondent and as such the withdrawal of Letter of Intent cannot sustain. Apart from alleging arbitrariness on the part of the respondent in withdrawing the Letter of Intent it has been argued that there has been a negation of the principles of natural justice inasmuch as no notice or opportunity of hearing had been afforded to the petitioner prior to issuance of the impugned orders/letters dated 14.10.2020 and 17.11.2020 at Annexures P-3 and P-4 respectively.

5. We have heard counsel at length and have perused the case paper-book.

6. Pleaded case of the petitioner is that the E-auction process in which he had participated was governed by the e-auction policy issued by the respondent. Copy of the same stand appended as Annexure P-1 alongwith the petition. Certain terms and conditions of such e-auction policy would be relevant to the issue at hand and the same read as under:-

"TERMS AND CONDITIONS FOR E-AUCTION OF RESIDENTIAL, INSTITUTIONAL AND COMMERCIAL SITES/BUILDING

A. DEFINITIONS:-

7. Base Price: The base price of a property put to auction shall be the current collector rate of that area of that financial year fixed by District Collector for that particular property including the factor of FAR. Bids for e-auction shall start from the base price. However, the base price is not necessarily the reserve price of a property.

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6. LOI:- LOI