Judgment

O. CHINNAPPA REDDY, J :- Special leave granted

2. On March 17. 1983, there was an auction of the exclusive privilege of selling country liquor in a group of twenty four shops in Allahabad City known as the Chail group of shops. The respondents were the highest bidders in fact, they were the only bidders, a circumstance which should arouse anyones curiosity and suspicion. However, nothing turns on the circumstance in this case. The bid was for a sum of Rupees 1,19,00,000. Auctions for the privilege of selling foreign liquor and bhang and of the privilege of selling country liquor in rural areas were separately held on other days. The Deputy Commissioner of Excise. Allahabad submitted a report dated March 26. 1983 to the Collector. Allahabad stating that the bids were low and would result in a loss of revenue to the Government, if accepted and suggesting that it might be recommended to the Excise Commissioner that the auctions might be cancelled and re-auctions held with a new strategy which he also suggested in the letter. On March 28. 1983. the Commissioner of Excise passed an order setting aside the auction of all the shops and directing a re-auction. The order may be usef