- (1.) Bhupesh Metals and Chemicals (P) Ltd. have instituted this suit against The Indian Iron and Steel Co.Ltd. claiming a sum of Rs. 97,000/- as damages for non-delivery of 20 M. Tons of Zinc Dross which was sold to them in an auction sale held on 24-2-83, and also claiming interest on the sum of Rs. 2,21,260/- for 18 weeks @ Re. 1/- per cent per week amounting to Rs. 39,826.80 P. and further interest on the earnest money of Rs. 47,000/- from May 17, 1983 to Nov. 1, 1983 at the aforesaid rate amounting to Rs. 11,750/- and for costs.
(2.) The plaintiff's case is that he participated in an auction sale held, on 24-2-83 at Hotel New Kenilworth, in Calcutta and his highest bids in respect of 3 lots of zinc dross of 10 tons were accepted and he duly paid the earnest money in respect thereof immediately on such acceptance.
(3.) The conditions of sale as advertised by the Government auctioneers provided inter alia as follows : "On the fall of hammer the purchaser shall have to pay the earnest money at the rate of 20% of the sale value up to Rs. 2 lakhs for each lot and for value of over Rs. 2 lakhs, at the rate of 20%, on the first Rs. 2 lakhs value and at the rate of 10 per cent on the rest of the amount exceeding Rs. 2 lakhs of each lot. The balance money for value of lots up to Rs. 2 lakhs should be paid within 15 days and for lots over value of Rs. 2 lakhs, an amount of Rs. 2 lakhs should be paid within 30 days and remaining within 45 days from the date of auction, in one or more instalments as decided by M.S.T.C. Ltd. (the auctioneers). The Customers failing to pay first instalment up to Rs. 2 lakhs within 30 days can pay the same subject to payment of an additional amount at the rate of 1% per week or part thereof within further period of 15 days. The earnest money will stand forfeited in the event of failure to deposit the first instalment up to Rs. 2 lakhs within such extended period without further reference to the customers.";