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VIVEK CHAUDHARY, MANISH KUMAR
Mohd. Rehan – Appellant
Versus
Lucknow Development Authority – Respondent
JUDGMENT :
1. Heard Sri Prashant Chandra, learned Senior Advocate assisted by Ms. Richa Mishra, appearing for petitioner and Sri Ratnesh Chandra, learned counsel for respondents.
2. This petition is filed seeking quashing of the order dated 13.04.2007 passed by Vice Chairman, Lucknow Development Authority whereby allotment of the plot in favour of the petitioner is cancelled and the token money deposited by the petitioner for the said allotment has been forfeited.
3. Brief facts of the case are that the Lucknow Development Authority (for brevity hereinafter referred to as ‘LDA’) published a notice dated 14.06.2005 for auction of certain plots in Gomti Nagar area for housing and commercial projects. Only builders/firms with prior real estate experience were qualified to participate in the bidding. The auction was held on 17.11.2006, petitioner’s bid of Rs. 10860/- per sqm. for Group Housing plot No. 1/26, Gomti Nagar measuring 6307 sqm. was declared successful. Petitioner deposited Rs. 27,24,000/- towards the earnest/token money. The aforesaid auction was confirmed by the Vice Chairman, LDA on 22.11.2006 and the same day a demand for Rs. 1,42,94,190/- towards the remaining dues of the
The court held that no hearing is required prior to cancellation of allotment when auction terms do not provide for it, and the allotment can be cancelled for non-payment.
The court upheld the legality of forfeiting auction deposits due to non-payment, affirming that the auction terms did not require a hearing prior to cancellation.
The cancellation of allotment was justified due to the petitioner's failure to comply with payment terms, emphasizing the importance of adhering to auction conditions and public interest.
A concluded contract arises from an unqualified acceptance of an offer, but acceptance of a refund can imply rescission of that contract, negating any claims for its enforcement.
No vested right is established from bid submission; rejection of bid is valid when corporation ensures public interest and current market rates prevail.
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 principle of unjust enrichment and the doctrine of legitimate expectations were central to the court's decision, emphasizing the obligation of the Development Authority to act fairly and reasonab....
A binding contract arises once a bid is accepted, requiring adherence to principles of natural justice before cancellation, especially when objections are pending.
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