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2021 Supreme(Raj) 975

IN THE HIGH COURT OF RAJASTHAN
Inderjeet Singh, J.
Rohit Jindal - Appellant
Versus
Rajasthan Industrial Development And Investment Corporation Ltd. (riico) & Ors. - Respondents
S.B. Civil Writ Petition No. 224/2021, S.B. Civil Writ Petition No. 249/2021 Connected With S.B. Civil Writ Petition No. 235/2021 S.B. Civil Writ Petition No. 293/2021 S.B. Civil Writ Petition No. 444/2021 S.B. Civil Writ Petition No. 12013/2020 S.B. Civil Writ Petition No. 13360/2020 S.B. Civil Writ Petition No. 301/2021 S.B. Civil Writ Petition No. 1173/2021 S.B. Civil Writ Petition No. 2759/2021 S.B. Civil Writ Petition No. 3126/2021
Decided on : 13-09-2021

Advocates appeared:
Mr. Himanshu Maheshwari, Advocate, for the Petitioner; Mr. Sanjeet Purohit, Advocate, for the Respondent

The authority has the right to cancel the highest bid and the bids must be competitive. The authority reserves the right to accept or reject any bid without assigning any reason.

Headnote:

E-Auction - Discrimination - Right to Cancel Highest Bid - [E-Auction] - [State of Punjab and Ors. v. Bandeep Singh and Ors. (2016) 1 SCC 724, Haryana Urban Development Authority and Ors. v. Orchid Infrastructure Developers Private Limited (2017) 4 SCC 243, Komal Aggrawal and State of Rajasthan and Ors in D.B. Special Appeal (Writ) No.274/2012] - The court discussed the right of the authority to cancel the highest bid, the need for competitive bids, and the reservation of the right to accept or reject any bid. The judgment in State of Punjab and Ors. v. Bandeep Singh and Ors. highlighted the need for sustainable justification and rationalization for ordering re-auction, while Haryana Urban Development Authority and Ors. v. Orchid Infrastructure Developers Private Limited emphasized the government's entitlement to change its policy and the authority's right to reject the highest bid. The court also referred to Komal Aggrawal and State of Rajasthan and Ors in D.B. Special Appeal (Writ) No.274/2012, which discussed the reservation of the right to accept or reject any bid without assigning any reason.

Fact of the Case:

The respondents issued an e-auction notice for allotment of industrial plots. The petitioners' bids were rejected by the auction committee, leading to the filing of writ petitions challenging the rejection.

Finding of the Court:

The court dismissed the writ petitions, citing the authority's right to cancel the highest bid, the need for competitive bids, and the reservation of the right to accept or reject any bid. The court also referenced previous judgments to support its decision.

Issues: Discrimination in bid rejection, authority's right to cancel highest bid, need for competitive bids

Ratio Decidendi: The authority has the right to cancel the highest bid, and the bids must be competitive. The authority reserves the right to accept or reject any bid without assigning any reason.

Final Decision: The writ petitions were dismissed.

JUDGMENT

1.In all these writ petitions common issue is involved, hence, decided together.

 In S.B. Civil Writ Petition No.224/2021, the following prayers reads as under:-

    "(a) That the respondents may kindly be directed to accept the petitioner's bid as reflected in Exhibit 4 and they may kindly be directed to make allotment of industrial plot bearing no.E-17, Naya Goan Industrial Area, District Pali in favour of the petitioner at the rate offered in his bid to the tune of Rs.1220/- per sqm:

(b) Formal Cancellation Order of petitioner's bid if any has been passed by the respondents then may kindly be treated as quashed.

(C) The respondents may kindly be restrained from putting the plot No.E-17, Industrial Area, Nayagaon, District Pali in re-auction/further auction.

(D) Cost of the writ petition may kindly be awarded in favour of the petitioner.

(E) Any other appropriate order which this Hon'ble Court deems fit to pass looking to the present facts and circumstances of the case, may kindly be passed in favour of the petitioner."

2. Brief facts of the case are that respondents (to be referred as RIICO) issued e-auction notice dated 04.09.2020 by which invited online bids for allotment of various category of plots in RIICO's Industrial Areas through E-Auction Bidding System. In pursuance thereto, the petitioners applied for allotment of plots.

3. The offer made by all the petitioners for allotment of plots were above than the reserves rate. The committee of the respondent has considered the case of the petitioners for allotment of plot in its meeting dated 10.11.2020 (Annex.-R/3). The auction committee completed the auction proceedings and considered the single bid offered for the allotment of plot by the petitioners in their favour and the Committee has rejected the applications submitted by the petitioners for allotment of plot in their favaour.

4. The reason recorded by the committee for rejection in their meeting reads as under:-

    "It has been reported to the committee that higher multiple bids have been received in the same auction. Therefore, the single bid received for these plots doesn't seem competitive. Accordingly, in view of the above facts, the single bids are rejected."

5. During the pendency of the writ petitions before this Court, the petitioners have filed application for amendment in S.B. Civil Writ Petition No.224/2021 challenging the order dated 10.11.2020 (Annex.-R/3). Application for amendment in the writ petition is allowed and amended writ petition is taken on record.

6. Learned counsel for the petitioners has submitted that in previous auction proceedings, the respondent-RIICO has accepted various bids which have been received as single bid pertaining to the industrial plots situated in the same area whereas the bid offered by the petitioners and received by RIICO pertaining to the industrial plots situated in the same area were rejected, therefore, rejection of their application amount to be discriminated amongst the similarly situated persons. Learned counsel further submitted that general directions issued by the RIICO from time to time with regard to e-auction were not followed by them. It is also submitted that prior to rejection of the bid, no notice was served upon the petitioners.

7. Learned counsel for the petitioners has relied upon the judgment in Hon'ble Supreme Court in the case of State of Punjab and Ors. v. Bandeep Singh and Ors. rendered in 2016 (1) SCC 724 wherein in para Nos. 6 and 7 held as under:-

    "(6) In the impugned judgment, the High Court has rightly concluded that no sustainable justification and rationalization was recorded in writing at the relevant time for ordering the re-auction of only the two subject properties. However, we should not be understood to have opined that the Government is bound in every case to accept the highest bid above the reserve price. Needless to say, the presence of cartelization or "pooling' could be a reason for the cancellation of an auction process. In addition, a

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