M/S. KAILASH NATH ASSOCIATES vs DELHI DEVELOPMENT AUTHORITY

The Supreme Court ruled that the Delhi Development Authority (DDA) must adhere to the terms of the auction as outlined in their conditions, specifically regarding the acceptance of bids and the forfeiture of earnest money. The Court emphasized that the DDA's acceptance of the highest bid and subsequent extension of payment deadlines must be clearly communicated and cannot be arbitrarily revoked. The Court held that the appellant's earnest money should not be forfeited as the DDA had extended the payment period, thus ruling in favor of the appellant and ordering the DDA to refund the earnest money if the bid was not accepted.