Failure to deposit the bid amount for an auctioned plot within the timeline prescribed by the Rajasthan Urban Improvement (Disposal of Urban Land) Rules, 1974 results in automatic cancellation, and subsequent unauthorized occupation does not confer a right to regularization, especially after significant delay.

Facts of the case:-

1. The brief facts giving rise to the present writ petitions are that on 18.09.1982, the Urban Improvement Trust, Jodhpur (for brevity, hereinafter referred to as “UIT”), presently known as the Jodhpur Development Authority, issued a notice for auction of Plot No. E-63, Masuria, Shastri Nagar, Jodhpur, admeasuring 1003.32 square meters (hereinafter referred to as the “plot in question”). The petitioner, a family trust, through its Chief Trustee, Mr. Ramesh Parekh, participated in the auction proceedings. The bid submitted by the petitioner, i.e., Rs. 3,51,162/-, being the highest, was accepted by the respondents on 18.09.1982 (Anx-1). In accordance with the auction conditions, upon being declared the highest bidder, the petitioner deposited one-fourth of the bid amount, i.e., Rs. 88,000/-, as security on the same day with the respondents.

2. The facts, as disclosed in the writ petition and the reply filed by the respondents, indicate that after a lapse of more than ten months of the bid i.e. 18.09.1982 the petitioner on 09.08.1983 (Anx-2), submitted a cheque bearing No. 125457 issued by United Bank of India, Jodhpur, for Rs. 2,63,162/- to the Chairman, UIT, Jodhpur. The cheque, however, did not include the interest payable on account of delayed payment.

3. The petitioner, without issuance of a lease deed in its favour and after submitting the cheque of Rs. 2,63,162/- to UIT, constructed a boundary wall and a room on the plot in question.

4. UIT, Jodhpur, vide communication dated 24.01.1985, informed the petitioner that the cheque of Rs. 2,63,162/- could not be encashed and directed the petitioner to issue a fresh cheque of the same amount, failing which the allotment would stand cancelled and the one-fourth amount of Rs. 88,000/- deposited as security would be forfeited.

5. Upon receipt of the communication dated 24.01.1985, instead of issuing a fresh cheque, the petitioner submitted several representations requesting the respondent UIT to return the original cheque bearing No. 125457 dated 09.08.1983 (Anx-2) and to initiate proceedings for issuance of a lease deed in its favour.

6. During the pendency of the aforesaid dispute, in the year 2015, the plot in question, i.e., Masuria, Shastri Nagar, Jodhpur, was transferred to the Jodhpur Municipal Corporation. It appears that after such transfer, the file pertaining to the allotment of the plot was misplaced or remained untraceable for some time.

7. Be that as it may, the competent authority, i.e., the Deputy Commissioner, Municipal Corporation, Jodhpur, vide notice dated 06.02.2017 (Anx-11), informed the petitioner that since it had failed to deposit the cost of the land/bid amount within the stipulated time as per the bid conditions, the allotment stood automatically cancelled. Thereafter, vide notices dated 01.06.2017, 09.06.2017, and 14.06.2017, the petitioner was directed to vacate the plot in question, failing which it would be forcibly evicted.

8. In the aforesaid background, the petitioner filed S.B. Civil Writ Petition No. 7288/2017 before this Court, praying for the following reliefs:-

“It is therefore, humbly prayed that the appropriate writ, order or direction be issued to the respondents authorities and the present petition may kindly be allowed and.

(I) The notice dated 06.02.2017 (Annex-1) and order dated 01.06.2017 (Annex-2) issued by the respondent Commissioner, Municipal Corporation Jodhpur, may kindly be