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IN THE HIGH COURT OF JUDICATURE AT BOMBAY
SHREE CHANDRASHEKHAR, CJ., GAUTAM A. ANKHAD
Diti Developer – Appellant
Versus
City and Industrial Development Corporation of Maharashtra Ltd. – Respondent
| Table of Content |
|---|
| 1. petitioner's bid rejection details. (Para 1 , 2) |
| 2. arbitrariness of bid cancellation argued. (Para 3) |
| 3. tender's cancellation rights upheld. (Para 4 , 5) |
| 4. judicial review limitations in contracts. (Para 6) |
| 5. writ petition dismissed, emd refunded. (Para 7) |
JUDGMENT :
PER, GAUTAM A. ANKHAD, J.
The petitioner has filed this writ petition challenging the order dated 20th August 2025, whereby the respondent rejected the petitioner’s bid in respect of Plot No. 8A, Sector-13, Kalamboli, Navi Mumbai (in short, “the plot”).
2. The brief facts relevant for this petition are as follows:
(a) Pursuant to an advertisement issued by the respondent, the petitioner submitted its bid for allotment of the plot. The petitioner deposited Rs.1.50 crores towards Earnest Money Deposit (in short, “EMD”) on 23rd July 2024. An auction was conducted, in which the petitioner’s bid of Rs. 1,70,098/- per sq mt was declared as the highest bid for the plot. However, the allotment letter was not issued. Upon enquiry, the petitioner learnt that the respondent had decided to withhold the issuance due to certain pending litigation, which ultimately came to be resolved on 10th June 2025.
(b) On 16th June
No vested right is established from bid submission; rejection of bid is valid when corporation ensures public interest and current market rates prevail.
The highest bidder is not entitled to the issuance of a Regular Letter of Allotment unless the bid is accepted by the competent authority. The rejection of the bid by the competent authority must be ....
(1) Allotment of Industrial Plot – Ordinarily, when large areas of industrial land are auctioned, overall price would be separately assessed as compared to smaller plots – Merely because selling pric....
Point of Law - Once State decides to grant any right or privilege to others, then there is no escape from rigour of Article 14.
A letter of intent signifies acceptance of a bid, forming a binding contract. Subsequent withdrawal due to administrative reasons must be justifiable and non-arbitrary under contractual principles.
The highest bidder in an auction does not have a vested right, and the authority has the discretion to cancel bids in the interest of public revenue.
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