Disputes arising from contractual agreements with state bodies should generally be resolved in civil courts, not via writ petitions under Article 226.

1. The petitioners before this Court are the residents of Bhopal, they are aggrieved by the order / letter dated 12.3.2014 (Annexure P - 20) issued by the respondent to the petitioners for refund of partial registration fee of Rs.30 Lakhs back to the petitioners which was deposited by them initially and consequently impliedly cancelling registration of the petitioners, who were the highest bidders in the auction proceedings.

2. In brief the facts of the case are that the petitioners are the residents of Bhopal and were declared as successful bidders for sale of the property known as "Departmental Store B" situated at Centre Point, New Market, Bhopal whereby the petitioners had offered the bid amount of Rs.2,37,01,000/- as total sale consideration for the said property, against which the petitioners also deposited the earnest money and registration fee of Rs.40 Lakhs on 7.10.2008 and subsequently allotment order dated 22.10.2008 was issued in favour of the petitioners by the respondent directing them to pay the balance amount of Rs.2,14,39,912/- within 30 days against transfer of said auctioned property as mentioned above. In compliance of the allotment order, the petitioners deposited the additional amount of Rs.8 lakhs by way of cheque within 8 days so as to complete 20% of the total payment as margin money from the personal sources of the petitioners.

3. It is further the case of the petitioners that after depositing the aforesaid money, the balance amount was to be obtained from the bank loan, and hence it was requested to the respondent to issue the receipt in respect thereof, but neither the aforesaid cheque has been encashed nor the receipt for the same has been issued till date.

4. It is further contended by the petitioners that prior to issuance of above allotment order dated 22.10.2008, another letter of allotment was issued to Smt. Bhagwati (Roma) Chugh in respect of which a dispute had arisen between Smt. Bhagwati Chugh and the respondent and in pursuance of the stay / injunction order obtained by her on 21.10.2008 against the respondent from selling the aforesaid property, the petitioner could not deposit the amount as the respondent confirmed about the pendency of the case filed by earlier allottee Smt. Bhagwati Chugh. The aforesaid stay order was subsequently vacated on 6.11.2009 and the respondent directed the petitioners to pay the balance amount immediately.

5. Thereafter on 10.11.2008 the petitioners wrote a detailed letter (Annexure P - 5) to the respondent whereby they have stated that in order to make the balance payment, they need to get the funds from the financial institutions, who are demanding an acknowledgment of the amount which has already been deposited by the petitioners. In this letter, the petitioners also sought some time to make the balance payment which was to be intimated by the respondent. On 11.11.2009 the Estate Officer wrote a letter to the petitioners that the matter with other earlier allottee has been resolved and therefore they should deposit the remaining amount immediately and to this letter the petitioners replied on 15.11.2009 and informed the respondent that they are depositing a sum of Rs.39,39,912/- and balance amount would be deposited within 3-4 weeks and total amount which is required to be paid is Rs.1.75 crores, which is to be deposited by managing it from the Bank. Vide letter dated 9.12.2009 (Annexure P - 10) the respondent again wrote a letter to the petitioners to the effect that since the dispute between