In Brief
A Municipal Committee in Haryana auctioned municipal land in 1999 to the respondent as the highest bidder for Rs.15,76,150. The respondent deposited the amount and claimed ownership but the Municipality did not execute the sale deed. The respondent sued for mandatory injunction in 2011, over 12 years after the auction. The Supreme Court held that no concluded contract arose from the highest bid alone without formal acceptance and allotment letter. The State is not bound to accept the highest bid and can reject it. An inter-departmental communication seeking approval does not constitute confirmation of sale. The suit was also barred by limitation. The Court set aside the decree, found the respondent's possession illegal, ordered forfeiture of the deposited amount as damages, and directed the Municipality to retake possession.
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