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.

JUDGMENT :

1. At the joint request of learned counsels of the parties, the matter is heard finally today itself.

2. The instant writ petition is filed under Article 226 of the Constitution of India, with the following prayers:

“It is, therefore, most respectfully prayed that this writ petition may kindly be allowed and by an appropriate writ, order or direction:

i) The Decision cum order of the Committee constituted under RIICO (Annex. 4 & 5) may kindly be quashed.

ii) The commercial plot CP-2 situated at RIICO, Kushalgarh, District Banswara may kindly be allotted in favor of the petitioner.

Any other writ, order or direction which this Hon'ble Court may deem just and proper in the facts and circumstances of the case, may kindly be passed in favour of the petitioner. Costs of the writ petition may kindly be awarded to the petitioner.”

3. The factual matrix of the case is that the Rajasthan State Industrial Development and Investment Corporation Ltd. (hereinafter referred to as ‘RIICO’), Respondent No. 1, issued an advertisement dated 22.11.2020 (Annexure-1) inviting applications for e-Auction for two commercial plots, i.e; CP 1 and CP 2, situated at Kushalgarh, Dist. Banswara, and the requisite documents were required to be submitted within the dated ranging from 23.11.2020 to 07.12.2020. The e-Auction took place from 08.12.2020 at 1000 hours to 10.12.2020 till 1700 hours.

4. The petitioner after complying with the requisites mentioned in the advertisement dated 22.11.2020 applied for the e-Auction and deposited application amount along with the earnest money The petitioner vide application dated 07.12.2023 (Annexure-2) submitted all the requisite documents and deposited the application amount along with the earnest money to participate in e-Auction.

5. The petitioner was allowed to take part in e-Auction, which was held on 08.12.2020 to 10.12.2020. At the end of e-Auction for plot CP 2, the petitioner was declared succesful bidder for making the highest bid for CP 2 @ Rs. 13,160/- per sqm.

6. The petitioner being the successful/highest bidder for the commercial plot CP 2 kept waiting for the 'Confirmation of Auction cum Demand Letter' and thereafter, the petioner came to know that the Regional Manager, RIICO with regard to commercial plot CP 2 drew note sheets (Annexure-4) to effect that the Plots No. CP 1 and CP 2 are almost similar in size admeasuring 472.35 sqm and 471.55 sqm, respectively, but there is a huge difference of amount and therefore, the decision that whether the highest bid for Plot No.: CP 2 needs to be accepted/rejected, is forwarded before the Head Office Committee.

7. The Head Office Committee in it's decision (Annexure-5) rejected the bid for Plot No. CP 2 and further, directed the authorities to conduct re-auction for Plot No. CP 2 and allowed the highest bid done by one Sh. Pritesh Pidiyar for Plot No. CP 1.

8. Aggrieved by the above decision of the Head Office Committee has preferred this writ petition.

9. The learned senior counsel for the petitioner submitted that:

A). The decision taken by the Head Office Committee was without affording the petitioner an opportunity of being heard which is gross violation of the principles of natural justice and also in violation of the provisions of the Rajasthan Transparency in Public Procurement Act, 2012 (hereinafter referred to as ‘the Act of 2012’) and Rajasthan Transparency in Public Procurement Rules, 2013 (hereinafter referred to as ‘the Rules of 2013’). The relevant provision of the Act of 2012 and the Rules of 2013 reads as under:

‘4. Fundamental principles of public procurement. - (1) In relation to a public procurement, the procuring entity shall have the responsibility and accountability to –

(a) ensure efficiency, economy and transparency;

(b) provide fair and equitable treatment to bidders;

(c) promote competition; and

(d) put in place mechanisms to prevent corrupt practices.

(2) Subject to the provision of sub-section (3) of section 3, every procuring entity shall car