9911796707
TMI Blog2009 (2) TMI 102X X X X Extracts X X X X X X X X Extracts X X X X ..... aft of Romanian origin weighing about 2398 MT. The goods were offered on as-is-where-is basis and the successful bidders were required to pay the earnest money of 10 per cent of the bid value within seven days of the declaration of the result of the auction. The auction was open to bidders registered with the customs as access to the auction website was only by keying in the allotted user ID and password. The duration of the process of auction was to be notified on the website. The first petitioner put in a bid and complains that despite the first petitioner being declared as the highest bidder, no formal approval was issued by the respondents as was required to be done under the conditions of the auction. The parties refer to the followi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as calculated by the Department." In addition to the above conditions the auction was governed by the terms of the general conditions of sale which include the customs authority's right to forfeit the earnest deposit upon the full payment not being tendered with the specified time with a right to offer the lot to the second highest bidder. Clause 18 of the general conditions appears to be relevant: "18. If the successful bidder fails to make the payment and/or take delivery of the goods within the time limit prescribed then the SELLER reserves the right to offer the lot to the second highest bidder. The second highest bidder can either accept or refuse the offer and such refusal will not render him a defaulter. When the second highest bidd ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... never been issued by the respondent authorities, and, consequently, there was no obligation on the petitioners' part to tender the balance payment. The petitioners rely on a communication of October 3, 2008 requesting the respondent authorities to issue a delivery order and invoice in the name of the first petitioner and on subsequent writings of October 6, 2008, November 10, 2008, November 24, 2008 and February 6, 2009 expressing their readiness and willingness to make the payment upon the issuance of the delivery order. The petitioners say that upon the respondents having failed to issue either the communication of confirmation/approval of the bid or the delivery order in respect of the goods, the petitioners no longer remain obliged to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sale." Communication dated October 3, 2008 "Sub: Sale by e-auction no. 04/08-09 Lot No. 1045 Please note that I am in receipt of your acceptance letter dated 26.09.08 regarding confirmation of the above-mentioned lot of Wheel Sets. I have purchased the lot on behalf of M/s. Steel Union Pvt. Ltd. 40, Strand Road, Room No. 5, Ground Floor, Kolkata-700001. I request you to issue Delivery Order & Invoice etc. in the name of the same. Thanking you." The respondents submit that the contract had been concluded and there was no doubt that the petitioners harboured in that regard. There is a suggestion that the failing price of the metal in the international market may have prompted the petitioners to invent a ground to wriggle out of the bargai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ause (xvii) stipulates that a delivery order would be issued to the bidder to enable him to receive the goods only upon the full amount being paid. Going strictly by the terms governing the auction, the contract was concluded upon the bidder being intimated of the acceptance of the bid and the delivery of the goods could be obtained upon payment of the full amount. The letter of acceptance required the petitioners to put in the earnest money within seven days from the date of such letter and reminded the petitioners that the balance sum was to be paid "within 45 days from the date of confirmation/approval." If the petitioners are so fixed on clause 3(f) of the conditions on the opening page of the e-auction notice, the communication of Sep ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s distressing that such an unworthy cause was not stopped at any level of screening before it reached court. The unabashed attempt to slip out of a binding arrangement and the complete lack of diffidence reveal either an unflattering assessment of the judicial process or the more fashionable psyche of making a matter sub-judice to ward off an undeniable claim. Speculating in metals is risky business. The exhilaration of money pouring in following a good call made on a given day is chillingly dampened in the chagrin of the payout that may have to be made on the next. As much as there may be profit in the speculation business in the market, speculation on a bad cause is depressingly expensive. WP No. 122 of 2009 is dismissed with costs asses ..... X X X X Extracts X X X X X X X X Extracts X X X X
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