Order
1. Special leave granted.
2. The limited question involved in this appeal is whether the offer which was made by the appellant who was an auction-purchaser would be valid indefinitely or not.
3. A suit was filed by Respondent 2 for recovery of money against Respondent 3 and a Receiver was appointed. After the decree was passed and even during the pendency of the appeal, under orders of the court the Receiver invited offers for the sale of the property of the judgment-debtor. The appellant made an offer for the purchase of the property. The offer of the appellant was that it would be valid for a period of three months from 13-2-1999. If the offer was not accepted the earnest money was to be returned and if the offer was accepted but the sale was not confirmed within three months, interest at the rate of 18 per cent of earnest money deposit of Rs 15 lakhs was payable from 13-5-1999.
4. It appears that the matter got delayed and the offer of the appellant, which was the highest offer, was not accepted within the said period. During the pendency of the matter, on 9-4-1999, an order of the High Court recorded that the appellant herein had agreed to keep the offer firm for a further period of three months. This meant that the offer expired on 9-7-1999 and till that day there was no confirmation or acceptance of sale in favour of the appellant.
5. The appellant then applied for permission to withdraw from the bid. The High Court by the impugned order dated 6-3-2000 declined to grant this permission and it came to the conclusion that the appellant's offer was liable to be accepted notwithstanding the delay in the acceptance and the appellant could not be permitted to resile from the bid. One month's time was granted to the appellant to pay the balance amount.
6. From the facts enumerated hereinabove, it is evidently clear that the offer of the appellant was a qualified one. The bid was not open for acceptance for an indefinite period. In the offer made by the appellant, it was clearly stated that the acceptance should be conveyed within three months which was subsequently extended up to July 1999. When, admittedly, there was delay in the acceptance of the bid, the appellant was at liberty to ask for the refund of money already paid and to withdraw from the bid at least after 9-7-1999.
7. We, accordingly, allow this appeal and set aside the order of the High Court insofar as it has accepted the bid of the appellant and has directed it to make the payment. The Official Receiver will refund to the appellant the earnest money deposited along with such interest as may have accrued thereon. The refund should be made within eight weeks from today.