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Panchratna Real Estate Pvt Ltd Versus Chief Commissioner of Income Tax And 1

2015 (4) TMI 555 - GUJARAT HIGH COURT

Forfeiture of bid amount - extension of period to make the payment of bid amount - Held that:- As at the time of inviting the bids as well as even at the time of confirmation of sale in favour of the petitioner, the petitioner was informed that the petitioner has to make the payment of bid amount within a period of 90 days from the date of confirmation of the sale, failing which the amount already deposited shall be forfeited. It is required to be noted that as such on the aforesaid terms and co .....

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4, the petitioner was required to make the payment of entire bid amount, which admittedly the petitioner has failed to make. Under the circumstances, as such the consequences on breach of the terms and conditions on which the sale came to be confirmed must follow. At the time of making bid the petitioner was required to make the provision for deposit of the bid amount.

Now, so far as the request on behalf of the petitioner to grant extension to the petitioner to deposit the balance bi .....

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ven the terms and conditions on which the sale came to be confirmed in favour of the petitioner.In any case this Court in exercise of powers under Article 226 of the Constitution of India cannot extend the period to make the payment of bid amount which would tantamount to varying the terms and conditions of inviting the bids and/or terms and conditions on which the sale is confirmed in favour of the petitioner. As observed herein above, on nonfulfillment of the terms and conditions and/or in bre .....

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r. - Special Civil Application No. 4787 of 2015 - Dated:- 20-3-2015 - M. R. Shah And S. H. Vora,JJ. For the Appellant : Mr C B Upadhyaya, Adv. For the Respondent : None JUDGMENT (Per : Honourable Mr. Justice M. R. Shah) 1. By way of this petition under Article 226 of the Constitution of India, the petitioner has prayed for an appropriate writ, direction and order to quash and set aside the impugned notice dated 17.09.2014 bearing No.SRT/CCIT/HQ/Auction/1431/ 2014-2015 of the Chief Commissioner o .....

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hat as per the said public advertisement/notice the intending bidders were required to deposit for participating in the auction refundable caution deposit of ₹ 25,000/-. That as per the terms mentioned in the said public notice / advertisement, said caution deposit amount was refundable subject to the terms thereof to all the bidders except the successful bidder who will be entitled to refund of the caution deposit on payment of earnest money. That the intending bidders were also required .....

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of sale by the Chief Commissioner of Income Tax, Surat. That the petitioner who claims to be the Manager of one Panchratna Real Estate Pvt. Ltd. also participated in the said public auction on depositing the caution deposit of ₹ 25,000/- and making earnest money deposit of ₹ 9,71,000/- as required before participating in the auction. It is the case on behalf of the petitioner that petitioner through his authorized bidder i.e. Kantibhai K. Patel made the highest bid to the tune of &# .....

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period of 30 days of the auction and the balance amount was required to be paid within 90 days from the date of confirmation of the sale. As observed herein above, the sale in favour of the petitioner / highest bidder came to be confirmed on 27.02.2014. Therefore, the highest bidder petitioner was required to make the payment of 25% of the total bid amount within a period of 30 days and the balance amount within a period of 90 days from 27.02.2014. That the petitioner made the payment of 25% of .....

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tibhai K. Patel came to be rejected vide letter dated 07.04.2014 in light of para 17 of the terms and conditions of the sale confirmation. That as the petitioner highest bidder in whose favour the sale was confirmed did not make the payment of balance sale consideration within a period of 90 days from the date of confirmation of sale, which the petitioner highest bidder was required to make within a period of 90 days as per the terms and conditions of the tender agreement as well as the terms an .....

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2.07.2014 requested for extension of time so as to pay the remaining bid amount along with the cheque of ₹ 40 lacs dated 03.07.2014. Thus, till 03.07.2014, the petitioner made the payment of ₹ 1,68,00,000/- in all (65.62% of the total bid amount). It is the case on behalf of the petitioner that at that stage the petitioner assured that remaining amount of ₹ 88 lacs shall be paid within a period of 45 days. That vide communication dated 21.08.2014 the CCIT informed the petitione .....

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. That thereafter vide impugned notice / communication dated 17.09.2014, the CCIT has informed the petitioner that the amount of ₹ 1,28,00,000/- already paid by the petitioner stands forfeited in view of the terms of para 11 of the AnnexureA of the terms and conditions of the CBDT Instruction No.1908 dated 19.07.1993 as well as paras 10 and 11 of the Auction Brochure of the subject property, as the petitioner failed to pay the entire bid amount within the specified period (within 90 days f .....

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imposed in the CBDT Circular upon which the reliance is placed itself is absolutely illegal. It is submitted that as such the petitioner has already paid approximately 64% of the bid amount by now and is ready and willing to pay the balance amount of bid amount if some more time is granted to the petitioner. It is submitted that even after completion of 90 days the petitioner has made some payment which has been accepted by the Department. It is submitted that as the petitioner could not get th .....

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90 days from the date of confirmation of sale in favour of the petitioner. It is not in dispute that as per the public advertisement / notice inviting the bids it was so specifically mentioned that the successful bidder has to make the payment of entire bid amount within a period of 90 days from the date of confirmation of sale. It is also not in dispute that even in the terms and conditions of the sale confirmation, it has been specifically provided that the successful bidder (petitioner) has t .....

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unt already deposited shall be forfeited. It is required to be noted that as such on the aforesaid terms and conditions the sale came to be confirmed in favour of the petitioner. Despite the above, the petitioner has failed to make the payment of bid amount within 90 days from the date of confirmation of sale. It is required to be noted that the sale came to be confirmed in favour of the petitioner on the aforesaid terms and conditions vide communication dated 14.02.2014 which came to be communi .....

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s the request on behalf of the petitioner to grant extension to the petitioner to deposit the balance bid amount is concerned, the same cannot be accepted now. It is required to be noted that as such the petitioner was required to deposit / pay the entire bid amount within a period of 90 days from 14/27.02.2014 i.e. on or before 14/27.05.2014. Therefore, time to make the payment of entire bid amount had expired as far as back in the month of May, 2014. Granting of further time and/or extension o .....

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