Time-bound auction bid lapses on expiry if not accepted, allowing withdrawal and refund of earnest money.

An auction bid made subject to acceptance within a fixed period remains operative only for that period, including any express extension. Where acceptance and confirmation of sale do not occur before expiry of the extended time, the bid cannot be treated as continuing indefinitely. On those facts, the bidder is entitled to withdraw from the offer after the stipulated period ends and seek refund of the earnest money. The operative principle is that a time-bound qualified offer lapses on expiry if not accepted within the agreed period.

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Issues: Whether the appellant's auction bid, made subject to acceptance within a fixed period, could be treated as open for acceptance indefinitely and whether the appellant could withdraw after expiry of the stipulated period.

Analysis: The offer was expressly qualified and remained open only for three months from 13-2-1999, later extended by a further three months up to 9-7-1999. Since acceptance and confirmation of sale did not occur within that extended period, the bid could not be treated as subsisting indefinitely. The appellant was entitled to seek refund of the earnest money and to resile from the bid after the expiry of the stipulated time.

Conclusion: The appellant's bid was not open indefinitely, and withdrawal after 9-7-1999 was permissible.

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