HIGH COURT OF JUDICATURE FOR RAJASTHAN AT JODHPUR
NUPUR BHATI, J.
Dipika Tillani, W/o. Dharmendra Tillani – Petitioner
Versus
State of Rajasthan, through the Principal Secretary, Urban Development and Housing Department and Anr. – Respondents
S.B. Civil Writ Petition No. 1448 Of 2014 With S.B. Civil Writ Petition No. 551 Of 2014, S.B. Civil Writ Petition No. 552 Of 2014, S.B. Civil Writ Petition No. 1362 Of 2014, S.B. Civil Writ Petition No. 1364 Of 2014, S.B. Civil Writ Petition No. 1435 Of 2014, S.B. Civil Writ Petition No. 1959 Of 2014.
Decided On : 31-10-2023
auction - Municipalities - Rajasthan Municipalities (Disposal of Urban Land) Rules, 1974 - Rule 14
Fact of the Case:
The petitioners participated in an auction for a plot, were declared as the highest bidder, and deposited 25% of the plot's value. The respondents refused to accept the remaining 75% and later cancelled the auction.
Finding of the Court:
The court found that the auction proceedings were conducted dehors the provisions of law, without obtaining the required sanction, and with various irregularities.
Issues: Violation of auction rules, refusal to accept remaining payment, cancellation of auction proceedings, adherence to principles of natural justice.
Ratio Decidendi: The court held that the auction was conducted in violation of Rule 14 of the Rules of 1974, and the cancellation of the auction was justified due to irregularities and non-compliance with the law.
Final Decision: The writ petitions were dismissed, and the cancellation of the plot auction was upheld.
JUDGMENT :
1. The matters have been listed in the category of orders. With the consent of learned counsel for the parties, the matters are heard finally, today itself.
2. Since common questions of facts and law are involved in these writ petitions, therefore, these writ petitions are decided by this common order by taking the writ petition No.1448/2014 as main file.
3. The present writ petition has been filed under Article 226 of the Constitution of India with the following prayer:-
ii. The respondent authorities may kindly be directed to allot and make patta of plot auctioned to the petitioner.
iii. Any other writ or direction that may be deemed fit, just and proper may kindly be issued in favour of the petitioner.
iv. Costs may kindly be also rewarded.”
4. Brief facts of the case are that the respondent No.2 issued an advertisement on 23.08.2013 for the purpose of auction of stray plots under the Rajasthan Municipalities (Disposal of Urban Land) Rules, 1974(hereinafter the Rules of 1974). In the said advertisement various plots of different sizes were advertised having the fixed reserved price and each participants was directed to deposit Rs.20,000/-as a security amount. The petitioners participated in the said auction process and placed a bid for Plot No.S-1 having size of 2500 square feet with a reserve price of Rs.6,46,250/-. The petitioners being the highest bidder was allotted a plot for an amount of Rs.8,29,925/-and the petitioners deposited 25 per cent value of the said plot on 18.09.2013. Vide demand letter dated 04.10.2013 for the said plot the petitioners were directed to pay the remaining 75 per cent of the amount. The respondents refused to accept the said amount on the ground that the elections were notified. The petitioners requested the respondent No.2 on several occasions for accepting the remaining amount but no heed was paid to it. The Executive Officer, Municipalities Rawatbhata, District Chittorgarh passed an order dated 13.12.2013 while cancelling the plot auction in favour of the petitioners. Petitioners being aggrieved of the same, have filed the present writ petition.
5. Learned counsel for the petitioners submitted that under the Rules of 1974, the power to review the order of the allotment of public auction of the patta in dispute does not vest with the respondents and thus, the said order deserves to be quashed and set aside. Learned counsel for the petitioners further submitted that the petitioners were not accorded an opportunity of hearing as no notice was served or explanation was called upon from the petitioners and thus, the respondents have failed to adhere to the principles of natural justice. Learned counsel also submitted that once the petitioners were declared as highest bidder and the plot in question was auctioned in favour of the petitioners, the respondents could not have cancelled the said auction in such an arbitrary manner. Learned counsel for the petitioners also submitted that the petitioners had duly deposited the 25 percent value of the plot on 18.09.2013 and was willing to deposit the remaining 75 percent value of the plot in pursuance of the demand letter dated 04.10.2023 but the respondents did not accept the remaining 75 percent value of the plot which was to be paid by the petitioners.
6. Learned counsel for the respondents submits that undoubtedly the petitioners were declared as the highest bidder and the plot was auctioned in favour of the petitioners however, later on it was found that the said proceedings were conducted dehors the provisions of law and thus, the respondents had not choice but to cancel the auction proceedings. Learned counsel for the respondents also submitted that in some plots bid was received as high as Rs. 21,00,000/-and for some other plots the bid was received for much less amount indicating irregularities in the auction proceedings. Learn
The auction proceedings were invalid due to non-compliance with the mandatory notice period as per Section 148 of the Rajasthan Panchayati Raj Act, 1994.
Rule 21 of the Disposal Rules, 1974 applies only to allotted plots, not auctioned ones, reaffirming the legislative distinction and invalidating unauthorized actions taken under it.
The main legal point established is that a public authority's actions in contractual matters, especially those involving public property, should not be arbitrary and must adhere to recognized norms a....
The main legal point established in the judgment is the requirement for fairness and reasonableness in state actions, particularly in contractual matters, and the need for judicial review to ensure c....
Login now and unlock free premium legal research
Login to SupremeToday AI and access free legal analysis, AI highlights, and smart tools.
Login
now!
India’s Legal research and Law Firm App, Download now!
Copyright © 2023 Vikas Info Solution Pvt Ltd. All Rights Reserved.