JUDGMENT :

Satish Chandra Sharma, J.

1. Leave granted.

2. This present petition is arising out of order dated 08.02.2022 passed in Writ Appeal No. 5/2022, titled as, “Shri Humad Jain Samaj Trust Vs. The State of Madhya Pradesh & Ors.”, passed by the High Court of Madhya Pradesh at Indore. The Division Bench of the High Court has set aside the order dated 17.12.2021, passed by the learned Single Judge in Writ Petition No. 26040/2021.

3. The facts of the case reveal that the appellant Indore Vikas Praadhikaran (IDA), hereinafter referred to as “IDA” issued an advertisement inviting bids for leasing out land admeasuring 3382 sq. meters situated at Scheme No. 74-C, Sector C, Indore, on 17.07.2020 and the terms and conditions were specified in the Notice Inviting Tender (NIT). The reserve price was fixed at Rs. 21,120/- per square meter. The IDA pursuant to the NIT dated 17.07.2020 received three bids and the bid of respondent No. 1- Shri Humud Jain Samaj Trust was the highest as a bid of Rs. 25,671.90/- per square meter was offered in the matter. The bids were opened on 09.09.2020. The Tender Committee while it was finalizing the bids noticed that in respect of the land in question, a property tax demand to the tune of Rs. 1.25 crores was outstanding and the same was not taken into account while fixing the base price and, therefore, the Tender Committee arrived at a conclusion not to accept any of the bids and to issue a fresh tender with a reserve price of Rs. 26,000/- per square meter. The matter was placed before the Board of IDA and on 27.07.2021, the Board accepted the recommendation of the Tender Committee. The bid of respondent No. 1 was rejected and it was resolved to issue a fresh NIT in the matter. Respondent No. 1 was informed on 23.08.2021 about the rejection of bid of respondent No.1 and on 01.10.2021, the earnest money was also refunded. On 18.10.2021, the IDA passed a resolution for issuance of a fresh NIT with a reserve price of Rs. 26,000/- per square meter and thereafter, a fresh NIT was issued on 17.11.2021. Respondent No. 1 after issuance of the fresh NIT preferred a writ petition on 24.11.2021 before the High Court of Madhya Pradesh, inter alia, challenging resolution dated 27.07.2021 rejecting the bid as well as being aggrieved by the issuance of fresh NIT dated 17.11.2021.

4. It is pertinent to note that respondent No.1 did not participate in the subsequent NIT issued on 17.11.2021. Respondent No. 1 before the High Court stated that by no stretch of imagination, his bid could have been cancelled as he was the highest bidder. It was further stated by respondent No.1 before the learned Single Judge that he is ready to negotiate in the matter and the bid has been cancelled without assigning any reason.

5. The IDA did file a detailed and exhaustive reply before the learned Single Judge and reliance was placed upon the terms and conditions of the NIT. Heavy reliance was placed upon Condition No. 6 which empowered the IDA to accept or reject any or all bids. Learned Single Judge after hearing the parties at length arrived at the conclusion that the petitioner Trust is not entitled to any relief as no contract was executed at any point of time nor any letter of allotment was issued in its favour. Learned Single Judge also held that the highest bidder does not acquire any vested right to have the auction concluded in his favour and the IDA was justified in issuing fresh NIT in the matter.

6. Respondent aggrieved by the orders passed by the learned Single Judge preferred a writ appeal and the Division Bench of the High Court of Madhya Pradesh at Indore Bench allowed the writ appeal directing the IDA to allot the plot to respondent in case he is ready to pay the price of the land in question at Rs. 26,000/- per square meter. Para 6, 7 and 8 of the order passed by the Division Bench of the High Court reads as under:

“6. The dates and events of the case are not in dispute. In the first NIT, the base price of the land was Rs.21,