(PER : HONOURABLE MR.JUSTICE VIJAY MANOHAR SAHAI) 1. We have heard Ms.Megha Jani, learned advocate for the petitioners and Mr.Jayant Bhatt, learned advocate for the respondent.
2. The respondent – Jamnagar Municipal Corporation floated a tender, inviting bids for sale of piece of land. The petitioner made his bid and deposited Rs.1,58,05,000/-. The land could not be sold to the petitioner, as it was objected by the nearby residents. The bid is likely to be cancelled by the respondent as stated by the respondent.
3. The learned counsel for the petitioners urged that if the respondent is going to cancel the bid, then, the amount deposited by the petitioner may be refunded along with 18% interest.
4. Learned counsel for the respondent has urged that in the tender notice, in paragraph 8, it was clearly mentioned that if the offer made by any party is revoked, then, no interest or compensation can be claimed by the tenderer.
The relevant translated version of paragraph 8 of the tender notice reads as under:-
“8) Out of received offers at any point of time or at any time if the offer of the order is revoked then against such offer filled by the person giving offer any amount of loss and damage or any interest or compensation cannot be claimed”
Thus, the condition of the tender is very much clear that the bidder is not entitled to claim any interest on any amount paid as deposit or otherwise, if bid or order is cancelled at any point of time. It is clear from the record that, even today, bid is not cancelled and petitioner has prayed for a writ of mandamus to execute the sale-deed whereas prayer for refund of amount is made as an alternative relief only and that petitioner has neither demanded the amount from the respondent nor the respondent has yet cancelled the bid. Therefore, the question of interest does not arise at all.
5. Learned counsel for the petitioner has placed reliance on the decision of the Apex Court in Aditya Mass Communication (P) Ltd. Vs. A.P. SRTC reported in (2003)11 SCC 17, wherein in paragraph 8, the Apex Court has awarded interest. We have carefully gone through the said decision. In paragraph 8 of the said decision, it was stated that interest could not be awarded unless limited to statute. In this case, in the tender notice itself, it was clearly written that no interest or compensation would be payable by the respondent. The petitioners submitted their tender with an open eye after reading the tender notice and deposited the amount. Now, the petitioner cannot say that interest be awarded to them.
6. In the result, the writ petition is allowed. A writ of mandamus is issued to respondent to pay Rs.1,58,05,000/- deposited by the petitioner within a period of one month from the date a certified copy of this order is produced before the respondent. In case the amount is not paid within the aforesaid period of one month, as directed above, then the petitioners shall be entitled for interest @ 15% for the defaulted period. Direct service is permitted.
(V.M.SAHAI, J.) (S.G.SHAH, J.) (binoy)