The highest bidder at public auctions only has a right of consideration and is subject to evaluation against the reserve price. No concluded contract comes into being until the bid is accepted by the competent authority.

JUDGMENT

Tejinder Singh Dhindsa, J. (Oral). - As per pleadings on record, petitioner had submitted a bid online for SCO Site No.93, Sector 56, Gurugram in pursuance to an auction process that had been initiated by the Haryana Shehri Vikas Pradhikaran (hereinafter to be referred to as the 'Respondent'). The bid amount was for Rs.4,73,68,800/-.

Instant writ petition has been filed raising a prayer that such bid for the site in question be accepted, being the highest bid. Further grievance raised in the petition is that no specific order has been passed informing the petitioner as regards the fate of his bid, the same having been accepted or rejected. A challenge has also been laid to Clause No.8 and 16 of the E-Auction Policy/Brochure (Annexure P-2) circulated by the respondent-Pradhikaran vide letter dated 16.06.2020 on the assertion that the afore-noticed clauses are arbitrary and unconstitutional.

Counsel submits that the respondent issued a public notice with regard to E-auction of commercial properties in Gurugram zone to be held on 23.10.2020. The terms and conditions with respect to the auction process were stipulated in an E-auction policy/brochure dated 16.06.2020 appended as Annexure P-2. The base price of each property/site was duly indicated. Petitioner being desirous of participating in the auction process pertaining to SCO Site No.93, Sector 56, Gurugram, deposited earnest money at the rate of 5 % i.e. Rs.22,61,200/- of the base price that had been indicated as Rs.4,52,23,800/-. Petitioner participated in the E-auction conducted on 27.10.2020 under Auction ID number 403. He was notified as the highest bidder for the site in question with a bid of Rs.4,73,68,800/- as against the base price of Rs.4,52,23,750/-. Petitioner was required to deposit 10% of the total bid amount as per applicable terms and conditions contained in the E-auction policy/brochure and the same was done within the stipulated time frame. However, without passing any order rejecting the bid of the petitioner, an amount of Rs.47,36,880/- was credited in the saving bank account of the petitioner by the respondent on 08.12.2020. It has been submitted that inspite of repeated representations having been filed before the respondent for acceptance of the bid, no favourable response has been evoked and it is under such circumstances that the instant writ petition has been filed.

Learned counsel has argued that the petitioner has complied with all the terms and conditions mentioned in the E-auction policy/brochure and had been notified as the highest bidder for the site in question. Failure to issue Letter of Intent to the petitioner under such circumstances is contended to be patently unfair and illegal. Heavy reliance has been placed upon Clause 28 of the E-Auction policy/brochure wherein it was stipulated that the earnest money deposited of the unsuccessful bidders (except H1) was to be refunded by the system automatically on closing of the auction and the decision regarding acceptance and rejection of H1 bid was to be taken by the competent authority within 7 working days of the E-auction. It is vehemently contended that since the auction in the present case was held on 27.10.2020 and the respondent/competent authority having failed to pass an order rejecting the bid of the petitioner within the stipulated time frame of 7 days, the highest bid of the petitioner is deemed to have been accepted resulting into a concluded and valid contract between the petitioner and the respondent pertaining to site No.93, Sector 56, Gurugram. In support of such contention counsel submits that it is a cardinal rule of interpretation that where a statute provides the manner in which a particular thing is to be done, it should be done in the manner prescribed and not in any another way.

Challenge to clause 8 and 16 of the E-auction policy/brochure (Anenxure P-2) is mounted on the ground that only base price for the commercial sites had been indicated whereas reserve price had