Highest Bidder At Public Auction Does Not Acquire A Vested Right To Have Auction In His Favour: Reiterates Allahabad High Court [Read Order]
The Allahabad High Court has reiterated that a highest bidder in an auction does not acquire any vested right to have the auction concluded in his favour. "The highest bidder does not acquire any vested right to have the auction concluded in his favour and the authority concerned is not under all circumstances bound to accept the highest tender or bid, which is subject to the...
The Allahabad High Court has reiterated that a highest bidder in an auction does not acquire any vested right to have the auction concluded in his favour.
"The highest bidder does not acquire any vested right to have the auction concluded in his favour and the authority concerned is not under all circumstances bound to accept the highest tender or bid, which is subject to the conditions in terms of which the auction has been held. It is open to the authority, if there exist good and sufficient reasons, not to accept the highest bid or to initiate proceedings inviting bid afresh," the Bench comprising of Justices Surya Prakash Kesarwani and Dr. Yogendra Kumar Srivastava has held.
The Court was hearing a writ petition filed by one Babloo, whose bid was rejected by the Allotment Committee in relation to bids for shop allotment at Mandi Sthal Barauli Ameer, Agra.
The brief facts of the case are that the Petitioner submitted his bid in respect of the seven shops reserved for scheduled castes. Significantly, only five firms had submitted their bids under this category.
The Allotment Committee, upon considering that the number of applicants was less and competitive bids were not submitted, which had resulted in the bids having been submitted for lesser amount, took a decision not to accept the highest bids and issued a fresh tender.
The Petitioner challenged this decision while asserting that even in the case of a single bid, the Allotment Committee was empowered to grant approval. It was contended that once the bid submitted by the Petitioner was highest in the reserved category then the Allotment Committee was bound to accept the same as per the terms of the Avanton Viniyamawali-2016.
Rejecting this argument, the Bench stated that it is a settled position of law that the authority concerned is not bound to accept the highest tender or bid, which is subject to the conditions in terms of which the public auction has been held. Reliance was placed on Rajasthan Housing Board & Anr. v. GS Investments & Anr.
The Court also referred to a decision in Meerut Development Authority v. Association of Management Studies, where it was held that the bidder who has participated in the tender process has no other right except the right to equality and fair treatment in the matter of evaluation of competitive bids.
"For the reasons aforestated, we are not inclined to exercise our discretionary jurisdiction under Article 226 of the Consideration of India to interfere in the case at hand," the Court said.
Case Title: Babloo v. State of UP & Ors.
Read Order