In
this case, the respondent had participated in an auction conducted by the
appellants for disposal of certain booths situated in Sector 9 at Panchkula and
had offered the highest bid of Rs. 4 lakhs for booth No. 103 situated in the
said sector. As he was the highest bidder, subject to the conditions of the
auction, he has allotted the said booth vide Memo No. 12351 dated 14th
September, 1988. The respondent had deposited Rs. 40, 000/-, being 10% of the
amount of bid, immediately and thereafter he had further deposited a sum of Rs.
60,000/- so as to make 25% of the total amount offered by him.
The
balance amount of Rs. 3 lakhs was to be paid by the respondent to the appellant
authorities in 10 half yearly instalments along with interest @10% per annum.
There was a condition in the auction sale that in case of default in payment,
the respondent had to pay interest @10% per annum on the unpaid amount and it
was also open to the appellant to impose further amount of penalty and the
resume possession of the both.
The
Supreme Court held that from the facts it shows that the respondent committed
several irregularities in making payment of the remaining amount; respondent is
not having bona fide intention and is merely trying to remain in possession
without making payment of the bid amount, which he had agreed to pay. It would
be open to the appellant to take possession of the booth in question in
accordance with law. [HUDA & another Vs. Kedar Nath; 2015 AIR
SCW 3947].
Prepared
by: S. Hemanth
Advocate
at Hemanth
& Associates
