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2022 Supreme(Raj) 765

IN THE HIGH COURT OF JUDICATURE FOR RAJASTHAN AT JODHPUR
Vinit Kumar Mathur, J.
M/s. Nehal Enterprises, Through Its Proprietor Manish Jain S/o Sh. Bablulal Jain - Petitioner
Versus
The State Of Rajasthan - Respondents
S.B. Civil Writ Petition No. 3946 of 2022, S.B. Civil Writ Petition No. 3899 of 2022, S.B. Civil Writ Petition No. 3902 of 2022, S.B. Civil Writ Petition No. 3907 of 2022, S.B. Civil Writ Petition No. 3941 of 2022, S.B. Civil Writ Petition No. 3942 of 2022, S.B. Civil Writ Petition No. 3943 of 2022, S.B. Civil Writ Petition No. 3967 of 2022, S.B. Civil Writ Petition No. 4078 of 2022, S.B. Civil Writ Petition No. 4083 of 2022, S.B. Civil Writ Petition No. 4191 of 2022, S.B. Civil Writ Petition No. 4195 of 2022.
Decided On : 04-11-2022

Advocates Appeared:
For the Petitioners: Mr. Muktesh Maheshwari, Mr. Akshay Surana.
For the Respondents: Mr. Sanjeet Purohit, Ms Nidhi Singhvi.

The government has the right to change its policy and reject the highest bid for valid reasons, and the decision-making process should be fair and not influenced by malafides or extraneous considerations.

Headnote:

E-auction - Land Allotment - EIA Notification 2006 - [Chemical, Petrochemicals & Petroleum Industries] - [EIA Notification 2006] - [Summary: The court discussed the cancellation of land allotment proceedings based on the decision of the Categorization Committee, which was in line with the EIA Notification 2006. The court highlighted the legal principle that the government has the right to change its policy and reject the highest bid for valid reasons. The decision was found to be based on cogent reasons and not influenced by malafides or extraneous considerations.]

Fact of the Case:

The writ petitions were filed against the cancellation of land allotment proceedings after the petitioners were declared highest bidders in an E-auction. The respondent RIICO canceled the proceedings based on the decision of the Categorization Committee, citing the need to allot land to industries related to Petroleum, Chemical, and Petrochemicals due to the establishment of a Refinery-Cum-Petrochemical Complex in the area.

Finding of the Court:

The court found that the cancellation of the proceedings was based on valid reasons and in compliance with the EIA Notification 2006. It dismissed the writ petitions, emphasizing that the decision was not influenced by malafides or extraneous considerations.

Issues: The main issue was the validity of the cancellation of land allotment proceedings and whether the decision was in line with the EIA Notification 2006.

Ratio Decidendi: The court established the legal principle that the government has the right to change its policy and reject the highest bid for valid reasons. It emphasized that the decision-making process should be fair and not influenced by malafides or extraneous considerations.

Final Decision: The writ petitions were dismissed, but the petitioners were given the option to file appropriate representations for setting up industries in the State of Rajasthan.

ORDER :

1. Heard learned counsel for the parties.

2. The issue involved in the above writ petitions is identical and the same arise out of similar order dated 17.02.2022, therefore, this batch of writ petitions is being heard finally and decided by this common order.

3. The present writ petitions have been filed against the order dated 17.02.2022 passed by the respondent No.3, whereby the proceedings in pursuance of E-auction notice dated 25.12.2021 have been canceled and the applications of the petitioners for allotment of land have been rejected.

4. Learned counsel for the petitioners has vehemently submitted that in pursuance of the notification issued by the respondents for allotment of land, the petitioners participated in the auction proceedings and they were declared highest bidders. Learned counsel further submits that in spite of issuance of allotment letters in favour of the petitioners, entire proceedings have been cancelled without assigning any reason. Learned counsel also submits that decision of the Categorization Committee dated 17.02.2022 was never communicated to the petitioners. He, therefore, prays that the impugned order dated 17.02.2022 passed by respondent No.3 may be quashed and set aside and the respondents may be directed to allot the land to the petitioners as per the auction proceedings undertaken.

5. Per contra, on the strength of detailed reply to the writ petition filed by the respondent RIICO, learned counsel for respondent RIICO submits that when it came to the notice of respondent RIICO that in the nearby vicinity of Refinery- Cum- Petrochemical Complex, entire area has been sanctioned as Petroleum, Chemical and Petrochemicals Investment Region in the Budget, therefore, a principal decision was taken that the allotment of land in the newly Industrial Area of Borawas- Kalawa should be made to the industries of related sectors (i.e. Chemical, Petrochemicals & Petroleum) only by whom the raw material and byproduct may be made available or sold. Learned counsel further submits that in furtherance of the decision, a board meeting was held on 17.02.2022 wherein decision was taken, whereby it was decided not to allot the land in question to the successful bidders i.e. the present petitioners. Learned counsel further submits that in view of well reasoned decision taken by the members of the Categorization Committee of RIICO, the applications/bids of the petitioners were canceled.

6. It is also contended that in view of judgments of the Hon’ble Supreme Court in the case of Haryana Urban Development Authority and Ors. Vs Orchid Infrastructure Developers Private Limited, reported in (2017) 4 SCC 243, judgment of this court in Rohit Burad Vs RIICO Through M.D., Jaipur and Anr. (D.B.C.W.P.No.599/2021), Deepak mathur Vs State Urban Developers (D.B.S.A.W. No.742/2014) and Ramdev Group Industries Vs. RIICO, Through M.D., Jaipur and Anr. (S.B.C.W.P. No.3426/2021, the decision taken by respondent RIICO is just, proper and correct.

7. I have considered the submissions made at the bar and gone through the relevant record of the case.

8. There is no dispute with respect to the notice of auction having been issued for allotment of land in question to the persons like petitioners. The auction proceedings had also been conducted. However, the same were not finalized and allotment orders were not issued in favour of successful bidders. The reason assigned by the respondents for not allotting the land to the petitioners is that on account of establishment of Refinery in the Petrochemical Complex, the allotment of land in the area in question should be made to the industries of the related sectors only for the purpose of facilitating proper functioning of the Refinery which is being established in the area. This court also takes note of the fact that the decision taken by respondent RIICO for not continuing with the bid process and cancellation of the applications of the petitioners is based on the detailed decision taken by t

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