SBCWP NO.6925/2007 – RAVI MOHAN BHOOTRA V/S MD AND CHAIRMAN, RFC, JAIUR AND ORS. : JUDGMENT DTD.26.8.2008 1/9 IN THE HIGH COURT OF JUDICATURE FOR RAJASTHAN AT JODHPUR. S.B. CIVIL WRIT PETITION NO.6925/2007 Ravi Mohan Bhootra. Versus MD and Chairman, RFC, Jaipur and ors. Date of judgment : 26th August, 2008 PRESENT HON'BLE DR. JUSTICE VINEET KOTHARI REPORTABLE Mr.Sandeep Bhandawat, for the petitioner. Mr.B.M.Bhojak, for the respondents. --------- 1. This writ petition has been filed by the petitioner – plaintiff being aggrieved by the rejection of his application for temporary injunction under Order 39 Rule 1 and 2 C.P.C. The Trial Court rejected the said T.I. Application vide order dtd.6.8.2007 which order was affirmed by the first appellate Court vide order dtd.11.9.2007 and being aggrieved of the same, the petitioner has approached this Court under Article 227 of the Constitution of India. 2. The facts in brief are like this that the petitioner gave highest bid in auction of plot No.250, Subhash Nagar-B, Main Pali Jodhpur Highway road measuring 160 ft. x 70 ft. at the rate of Rs.58.21 lacs as against the reserve price of Rs.40 lacs fixed by the respondent – RFC SBCWP NO.6925/2007 – RAVI MOHAN BHOOTRA V/S MD AND CHAIRMAN, RFC, JAIUR AND ORS. : JUDGMENT DTD.26.8.2008 2/9 vide auction advertisement Annex.1. The petitioner – plaintiff gave highest bid of Rs.58.21 lacs on cash down basis which bid was approved by the Regional Office Level Sale Committee comprising of 8 members, 5 of whom are different level Managers of respondent – RFC and other three members being from Dist. Industries Centre, RIICO and Regional Office, Jodhpur of RFC. The said sale approval was done on 2.11.2006 by the said committee vide annex.2. The petitioner – plaintiff and other bidders on the spot sought some clarification about the title of the RFC over the auction plot and also decision for removal of debris from the site in question by the RFC and the Sale Committee approved the said sale on 2.11.2006 in favour of the present petitioner at Rs.58.21 lacs subject to getting approval from the Head Office about the clearance of title and decision on removal of debris. It was decided that thereafter sale letter will be issued to the highest bidder, namely, Sh. Ravi Mohan Bhootra, the present petitioner. The petitioner wrote to the RFC by two different letters, one of them being 10.5.2007 that he would deposit 25% of the cash down value immediately as soon as doubt regarding title and decision on removal of debris is clarified to him because the release-deed in favour of the RFC was executed by the legal representatives of only one party, Mana Ram whereas the original patta of the said land out of which plot in question was auctioned was in joint name of three persons, namely, Khuma Ram, Mana Ram and Sona Ram. The petitioner – plaintiff like other bidders SBCWP NO.6925/2007 – RAVI MOHAN BHOOTRA V/S MD AND CHAIRMAN, RFC, JAIUR AND ORS. : JUDGMENT DTD.26.8.2008 3/9 had sought this clarification even at the time of auction and this fact is duly noted in Annmex.2 approval of sale on 2.11.2006 by 8 Members Committee. However, when nothing about the clarification of title was conveyed to the respondent – RFC, but the respondent RFC again sought to put the same plot to auction once again, the petitioner approached the learned trial Court by way of present suit for mandatory injunction that the respondent RFC be restrained from putting the same plot to auction again as earlier sale in his favour has already been approved by the 8 Members Committee on 2.11.2006. He also prayed for temporary injunction which has been refused by the Courts below and hence this writ petition. 3. Mr. Sandeep Bhandawat, learned counsel appearing for the petitioner – plaintiff urged that irrespective of doubt in title, since the sale in favour of the present plaintiff – petitioner had been approved and confirmed by the Regional Office Level Committee duly authorized in this behalf by the Head Office vide letter dtd.7.10.2006, referred to in Annex.2, therefore, there was no question of respondent – RFC backing out from the said approval of sale in his favour and the respondent – RFC could not put the said plot in question to auction again and during the pendency of the suit, the learned trial Courts below ought to have granted temporary injunction in favour of the plaintiff – petitioner. He submitted that the respondent -RFC is relying on some documents for their title in SBCWP NO.6925/2007 – RAVI MOHAN BHOOTRA V/S MD AND CHAIRMAN, RFC, JAIUR AND ORS. : JUDGMENT DTD.26.8.2008 4/9 respect of plot in question, which they also had at that time, namely, Patta No.64/1956 issued in favour of Khuma Ram, Sona Ram and Mana Ram, Annex.10, release-deed dated 5.8.1985 Annex.11, which was with respect to sale-deed No.3178 of 1971 which is another sale- deed executed by the Municipal Board, Pali in favour of Khuma Ram, Sona Ram and Mana Ram on 9.9.1971 Annex.12. Therefore, this clarification could have been given to the petitioner – plaintiff in pursuance of minutes of Sale Approval committee dated 2.11.2006, but instead of doing that the respondent RFC chose to set aside the entire auction proceedings without any valid rhyme or reason and refunded the earnest money of Rs.2 lacs to the petitioner vide letter dtd.7.5.2007 (Annex.4) which was sent to the petitioner – plaintiff by the registered post on 2.6.2007. He submitted that the respondent RFC has illegally put the same plot again to auction, merely to fetch more price ignoring the rights of the petitioner – plaintiff and the fact that the sale in his favour already stood approved, he submitted that further approval from the head office envisaged on 2.11.2006 was only with respect to clarifying its doubt about the title and decision on removal of debris and the same did not envisage approval of sale itself again in favour of the petitioner plaintiff which also stood approved on 2.11.2006 vide Annex.2. He, therefore, prayed that grant of temporary injunction during the pendency of the suit setting aside the impugned orders of the learned Courts below. SBCWP NO.6925/2007 – RAVI MOHAN BHOOTRA V/S MD AND CHAIRMAN, RFC, JAIUR AND ORS. : JUDGMENT DTD.26.8.2008 5/9 4. These submissions are opposed by Mr. B.M. Bhojak, learned counsel appearing for the respondent – RFC who submits that since approval of Head Office of RFC was never conveyed to the petitioner – plaintiff and there was a doubt entertained by the petitioner – plaintiff about the title of the property in question, therefore, the earlier auction proceedings remained under cloud of suspicion and therefore, the respondent – RFC was justified in setting aside that auction proceedings and holding a fresh auction. He submitted that fresh auction has already been held and therefore, the learned Courts below have not erred in refusing temporary injunction in favour of the plaintiff – petitioner. He relied upon the decision of the Hon'ble Supreme Court in the case of Rajasthan Housing Board and another V/s G.S. Investment and another reported in (2007) 1 SCC 477 and and Haridwar Singh V/s Bagun Sumbrui reported in AIR 1972 (SC) 1242. He, therefore, prayed that for dismissal of the writ petition. 5. I have heard the learned counsel and given my thoughtful consideration to the facts of the case and judgments cited at the Bar. 6. This Court is of the opinion that the Courts below have erred in refusing temporary injunction in favour of the plaintiff – petitioner in the present case. Once the auction proceedings were approved in favour of the plaintiff – petitioner by duly authorized Committee on SBCWP NO.6925/2007 – RAVI MOHAN BHOOTRA V/S MD AND CHAIRMAN, RFC, JAIUR AND ORS. : JUDGMENT DTD.26.8.2008 6/9 2.11.2006, for a doubt expressed by the plaintiff – petitioner like other bidders about the title was required to be clarified by the respondent RFC, the respondent – RFC being public body was expected in law to act fairly and clarify such doubt. It could not be expected in law for RFC to deliberately pass a defective title to the higher bidder. The RFC itself had put the said plot of land in question to auction vide Annex.1 advertisement, after the plaintiff petitioner gave bid of Rs.58.21 lacs on cash down basis, much higher than the reserve price of Rs.40 lacs fixed by the RFC, then merely because some genuine doubt was entertained by the plaintiff – petitioner about the title of the RFC and that was sought to be clarified, the officers of the respondent – RFC were expected in law to have clarified the doubt and not to hold fresh auction after about 5 to 6 months without clarifying that doubt to the plaintiff petitioner in whose favour the sale was already approved by the duly authorized committee of 8 members, 5 of which were senior officers of RFC itself. If the respondent – RFC had no better documents of title in its possession, than those they had at the time of putting the said plot in auction, whatever they had with them, they had to give it to the plaintiff – petitioner immediately in response to the letter expressing doubt about the title. If according to the RFC itself, their title was defective, one fails to understand as to how they could be allowed to dupe other bidders by re-auctioning the same plot. Instead of clarifying such doubt to the plaintiff – petitioner, the respondent – SBCWP NO.6925/2007 – RAVI MOHAN BHOOTRA V/S MD AND CHAIRMAN, RFC, JAIUR AND ORS. : JUDGMENT DTD.26.8.2008 7/9 RFC in the present case simply chose to put the same plot again to auction. This was absolutely unbecoming of public authority like RFC whose duly authorized committee had approved the highest bid in favour of the petitioner in no uncertain terms on 2.11.2006. The respondent – RFC cannot be allowed to gloss over the doubt expressed by the plaintiff – petitioner in their title in this manner. Since admittedly they did not communicate anything in writing to the plaintiff petitioner either clarifying the doubt about their title nor they asked for withdrawal of the petitioner from the earlier auction proceedings expressing their doubt about the title of the said property, the claim of the petitioner – plaintiff over the said property and withholding of the entire payment of Rs.58.21 lacs could not be held to be unjustified in the facts and circumstances of the case. It is on the contrary that the respondent -RFC sought to wash its hands off by refunding the said earnest money of Rs.2 lacs after about 7 months of approval of sale in favour of the petitioner – plaintiff. 7. The judgments relied upon by the learned counsel for the respondent – RFC in Rajasthan Housing Board (supra) is absolutely on different facts. In that case, the Hon'ble Supreme court was of the view that the auction conducted by the Rajasthan Housing Board was not fair and the price fetched for plot in question was much below market rate and therefore, the State Government disapproved the auction itself and such action of the State was held to be justified in SBCWP NO.6925/2007 – RAVI MOHAN BHOOTRA V/S MD AND CHAIRMAN, RFC, JAIUR AND ORS. : JUDGMENT DTD.26.8.2008 8/9 larger public interest. Nothing of this sort is available in the present case. The price paid or offered to be paid by the plaintiff – petitioner at Rs.58.21 lacs is much higher than the reserve price of Rs.40 lacs fixed by the respondent – RFC. Merely because the plaintiff petitioner sought some clarification about the title from the respondent – RFC, the respondent – RFC could not have backed out of its commitment to sell the said plot to the plaintiff – petitioner instead of clarifying that doubt. 8. The other judgment cited by the learned counsel for the respondents in Haridwar Singh's case (supra) is also distinguishable. In that matter, acceptance of offer of the highest bidder was not conveyed to him as despite the Government confirming auction sale at reserve price in favour of the plaintiff, no such communication was received by the concerned Dist. Forest Officer and therefore, the same was not conveyed to the plaintiff and later on, the Government cancelled the auction in favour of the plaintiff, which was held to be justified as the Court arrived at the conclusion that no concluded contract between the Government and the plaintiff had come into existence. This case is also distinguishable from the facts of the present case as in the present case, the highest bid of the plaintiff petitioner was approved by the duly constituted Committee on 2.11.2006 itself and thus a concluded contract between the parties came into being. SBCWP NO.6925/2007 – RAVI MOHAN BHOOTRA V/S MD AND CHAIRMAN, RFC, JAIUR AND ORS. : JUDGMENT DTD.26.8.2008 9/9 9. Accordingly this Court is of the clear opinion that the Courts below have erred in rejecting the application of temporary injunction in favour of the plaintiff – petitioner. 10. Consequently, this writ petition is allowed and the impugned orders of Courts below dated 6.8.2007 and 11.9.2007 are set aside and the application under Order 39 Rule 1 and 2 C.P.C. filed by the plaintiff – petitioner is allowed and the defendant – RFC is restrained from taking any further steps for making any conveyance of the suit land in question and creating any right in favour of any third party during the pendency of the suit filed by the plaintiff petitioner. The learned trial Court is requested to expedite the trial of the suit. However, if the respondent – RFC decides to go ahead and transfer the said plot to the petitioner to put an end to the litigation, it will be free to do so. No order as to costs. [ DR. VINEET KOTHARI ], J. item No. ss/-