J. Chelameswar, J. –

This is an appeal against the judgment in O.P. No.9348 of 1997 dated 01.07.1997, by the petitioner therein.

2. The sole respondent is the Kerala State Industrial Development Corporation. The respondent ‘took over’ certain properties of a private limited company known as ‘Salih Industrial Enterprises Pvt. Ltd’. The property is popularly known as ‘Fort Manor’ is located at Power House Road, Thiruvananthapuram. Such ‘take over’ was made in exercise of the power conferred on the respondent under Section 29 of the State Finance Corporation Act obviously on the ground that the abovementioned Salih Industrial Enterprises defaulted in repayment of certain loans due to the respondent Corporation. Subsequent to the take over, the respondent put up the abovementioned property for sale by inviting tenders from interested parties and an advertisement (marked as Ext.P1 in the Original Petition) in this regard was published in the Indian Express Daily dated 28.02.1997. The tender notice in so far as it is relevant for the purpose of the present appeal reads as follows:

“Details of the tender-cum-auction:

If interest, sealed tenders or a tender-cum-auction basis needs to be submitted to the undersigned on or before 15.00 Hrs on 15.04.1997 along with a Demand Draft for Rs.10 lakhs in a separate cover in the name of KSIDC payable at Trivandrum as Earnest Money Deposit. The auction of the hotel will be conducted at 15.30 Hrs on 15.04.1997 in the office of KSIDC, Keston Road, Kowdiar, Trivandrum. Participants in the auction will have to provide a Demand Draft/Bank Guarantee of Rs.10 lakhs as above. Immediately after the auction, the tender bids will be opened KSIDC reserves the right to accept or reject any tender/auction bid without assigning any reason whatsoever., The acceptance of the offer will be on the basis of the Tender-Cum-Auction. The selected bidder has to remit the full consideration within 45 days of confirmation of sale.”

3. The appellant was one of the persons who responded to the abovementioned advertisement. He submitted a sealed tender along with two demand drafts drawn on the Canara Bank for a cumulative amount of Rs.10 lakhs. Eventually the appellant became the successful bidder who offered Rs.15 Crores for the property. The respondent vide a communication dated 13.04.1997 (Ext.P5) informed the appellant that the offer of the appellant for Rs.15 Crores for the purchase of the property in question was accepted. It further called upon the appellant to make the payment of the amount of Rs.15 Crores in three instalments as indicated in the said communication. It is also indicated in the said communication that the amount of Rs.10 lakhs already deposited would be adjusted towards the purchase price of the property. The communication reads as follows:

“With reference to the Tender-cum-Auction conducted at the office of KSIDC, Trivandrum at 3.30 p.m. on 15.04.1997 and also with reference to your offer of an amount of Rs.15 Crores (Rupees fifteen crores only) towards the consideration of the assets of Salih Industrial Enterprises (P) Ltd., we hereby accept your offer of Rs.15 Crores for the purchase of the assets of Salih Industrial Enterprises (P) Ltd., taken over by KSIDC under Section 29 of the SFC’s Act, situated in Sy.No.2741/1, 2, 3, 4 and 2742/A in Chenganassery Village, Trivandrum Taluk, Powere House Road, Trivandrum in your favour subject to the following terms and conditions:

1. 1/3rd of the quoted amount, i.e., Rs.5 Crores (Rupees Five Crores only) has to be paid by D/D in favour of KSIDC payable at Trivandrum within 7 days of receipt of this letter (ii) another 1/3rd of the quoted amount i.e. Rs.5 Crores (Rupees Five Crores only) has to be paid by D/D within 30 days of receipt of this letter: and (iii) the balance amount, i.e. Rs.4.90 Crores (Rupees Four Crores Ninety Lakhs only) has to be paid within 45 days of acceptance of this letter. (This is after adjusting the earnest money dep