Judgment

G.S. Singhvi, J.

1. Leave granted.

2. Whether Chief Executive Officer of the Himachal Pradesh Housing and Urban Development Authority (hereinafter referred to as `the Chief Executive Officer') could reject the highest bid given by respondent No.1 in respect of commercial site measuring 9947 square meters situated at Parwanoo after it had deposited 10% of the bid money is the question which arises for consideration in this appeal filed against order dated 14.6.2010 passed by the Division Bench of the Himachal Pradesh High Court in CWP No.607 of 2010.

3. The Chief Executive Officer invited sealed bids from the general public for allotment of institutional/industrial/school plots at Atal Shiksha Kunj, Kallujhanda (Baddi), Bhatolikalan (Baddi) and Basal at Solan and two commercial sites at Parwanoo, one measuring 475.40 square meters and the other measuring 9947 square meters on leasehold basis for 99 years. The reserve price of both the sites was shown as Rs.9,000/- per square meter. Later on, the same was reduced to Rs.6,000/- per square meter.

4. Respondent No.1 gave bids for both the commercial sites. One, Chunni Lal Chauhan, who was partner of respondent No.1 (averments t