IN THE HIGH COURT OF JUDICATURE AT PATNA CWJC No.6559 of 2009 INDRAJEET KUMAR Versus THE EAST CENTRAL RAILWAY &ORS ----------- 4 27 -8-2009 In the instant writ petition the petitioner prays for quashing the letter no.70/Sale/08/09/437 dated 16.6.2008 by which the Deputy Material Manager, East Middle Railway, Samastipur has cancelled the auction in favour of the petitioner and earnest money has been forfeited. An auction bid was held on 21.1.2008 in respect of lot no.70/2007. The lot was sold to the petitioner being the highest bidder. The petitioner deposited the earnest money to the tune of Rs. 1,40,000/- on the same day. The balance amount of Rs.11,99,100/- was to be deposited within 20 days up to 9.2.2008 and in any case within 50 days which expired on 10.3.2008. The petitioner states that on inspection he found the components of condemned coach auctioned in the bid was missing. He immediately wrote a letter to respondent no.5 on 6.2.2008 about the same. When no reply was received to the aforesaid letter the petitioner made further representations on 20.2.2008, 16.3.2008 and 12.4.2008. The aforesaid letters are contained in Annexures-3, 4 and 5. The petitioner states that as no confirmation was received in respect of the aforesaid letter, he did not deposit the balance amount. The petitioner submits that the respondents in stead of replying to the query made by the matter cancelled the auction sale and 2 forfeited the earnest money by letter dated 15.6.2008. Learned counsel for the petitioner states that the respondents ought to have replied to his letter dated 6.2.2008 which was written immediately after holding of the bid to inform him whether the auctioned materials are missing or not. Have the Railways informed that the auctioned material was not missing, still there was sufficient time till 10.3.2008 for depositing the entire amount. He submits that on account of callous approach of the Railways, the petitioner could not deposit the aforesaid amount in time. He submits that still the petitioner is willing to deposit the entire amount. The Railways has filed counter affidavit wherein it denied the allegations that any of the auctioned materials were missing. Counsel for the Railways submits that as the balance amount was not paid even within 50 days of the bid, the same was cancelled. He further submits that it is not possible to accept further money from the petitioner at this stage. The auction notice provides that within 20 days the bidder should deposit the balance amount. However, on an application of the bidder the authorities can grant permission for making payment within further 30 days on payment of interest @ 12.25%. The Standard Conditions of Auction notice also contains the arbitration clause. As in similar cases where full money has not been deposited in time, this court has referred the matter to the sole 3 KHAN arbitration of Shri N.C. Lala, a retired District and Sessions Judge, this matter too is referred to him on the same terms and conditions. (S.P.Singh,J)