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2023 Supreme(P&H) 2740

IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH
G.S. SANDHAWALIA, HARPREET KAUR JEEWAN, JJ.
Mahavir Singh – Petitioner
Versus
Haryana Shehari Vikas Pradhikaran & Ors. – Respondents
CWP NOS. 13656, 14587, 14589, 13343, 13362, 13366,
Decided On : 07-08-2023

Advocates Appeared:
Mr. Sunil Chadha, Senior Advocate, with Mr. Akshay Chadha, Advocate; For the Petitioner(s) in CWP-13362 and 13366-2023.
Mr. S.S. Mor, Advocate; For the Petitioner(s) in CWP-13707-2023.
Mr. Kartar Singh, Advocate; For the Petitioner(s) (in CWP-13682 and 13633-2023).
Mr. Sukhdeep Singh, Advocate; For the Petitioner(s) (in CWP-14587 and 14589-2023).
Ms. Gehna Vaishnavi, Advocate, for Mr. Gaurav Bakshi, Advocate; For the Petitioner(s) (in CWP-13580, 13599, 13587 and 13656-2023).
Mr. Onkar Singh, Advocate, for Mr. P.K. Chugh, Advocate; For the Petitioner(s) in CWP-13682-2023.
Mr. Sachin Gupta (Ladwa), Advocate; For the Petitioner(s) in CWP-13343-2023.
Mr. Deepak Sabherwal, Advocate, for the respondent-HSVP.
Mr. Arvind Seth, Advocate, Ms. Parul, Advocate, for the respondent-HSVP (in CWP-13638-

Headnote:(A) E-auction Policy dated 20.07.2022 - Legal principles regarding highest bidding - Bidder's rights - Petitioner's highest bid at Rs.1,33,44,800/- not confirmed due to software error; refund of amount deemed legal as no contract established and highest bidder lacks vested rights (Paras 2, 11).

(B) The court affirmed that the competent authority retains discretion to accept or reject bids, and bidders do not acquire vested rights based solely on highest bids without formal allotment (Paras 8, 10).

Facts of the case:
The petitioner challenged an e-auction and the subsequent refund of the bid deposited, arguing the declaration of non-acceptance was unjustified. The respondents cited an error in reserve price as the reason for cancellation.

Findings of Court:
The court found no concluded contract existed due to the absence of an allotment letter, validating the refund process.

Issues: Was there a valid reason for not confirming the petitioner’s bid, and did he possess any vested rights under the auction policy?

Ratio Decidendi: The court reasoned that the lack of an allotment letter indicates no concluded contract, and the authority's discretionary power remains intact.

Result: Writ petitions dismissed.

Table of Content
1. common issue across multiple cases. (Para 1)
2. petitioner's highest bid claim and refund issue. (Para 2 , 3 , 4)
3. respondent's defense regarding bid cancellation. (Para 5 , 6)
4. court's analysis on bid acceptance and vested rights. (Para 7 , 8)
5. reasons behind the non-acceptance of the bid. (Para 9 , 10)
6. dismissal of petitions without interference. (Para 11)
7. final conclusion on writ petitions. (Para 12)

JUDGMENT

G.S.Sandhawalia, J.

The present judgment shall dispose of 14 cases i.e. 13656, 14587, 14589, 13343, 13362, 13366, 13580, 13587, 13599, 13638, 13682, 13633, 13707 and 13820 of 2023 since the issue in consideration is common. Facts have been taken from CWP-13656-2023, Mahavir Singh v. Haryana Shehari Vikas Pradhikaran and others whereby affidavit has been filed on behalf of the respondents and pleadings have been completed. The factual matrix in essence being the same, the said judgment would be applicable to all the cases as the principle of law being common.

2. The relief sought in the present writ petition is for quashing the e-auction which was sought to be fixed for 27.06.2023 whereby, the reserve price of the booth in question bearing Booth No.128, Sector 57, Gurugram-II was fixed at Rs.97,79,000/-. The challenge was on the ground that in an earlier e-auction held on 19.01.2023, the petitioner had auctioned for the said property at Rs.1,33,44,800/- and being the highest bidder, he should have been declared successful. The action of refunding the amount deposited by the petitioner was stated to be without any rhyme or reason and illegal against the e-auction policy dated 20.07.2022 (Annexure P-1).

3. As per the pleaded case of the petitioner, public notice for e- auction of the booth in question i.e. Booth No.128, Sector 57, Gurugram-II, was issued for 19.01.2023 and the base price had been fixed at Rs.97,64,800/-. The earnest money to be deposited was Rs.4,89,300/-. In the auction held accordingly, the petitioner had made a bid at Rs.1,33,44,800/- against the base/reserve price of Rs.97,64,800/ and he had been informed of the said fact from the mail received (Annexure P-4) of the same date. The sum of Rs.8,46,180/- was thereafter deposited on 20.01.2023 (Annexure P-5) to make the total deposit to Rs.13,34,480/-, which was 10% of the bid amount. However, after a period of 4 months and 15 days, the whole amount was re-deposited by the Haryana Shehari Vikas Pradhikaran (in short 'the HSVP') in his account on 05.06.2023 in two installments as deposited by the petitioner. No intimation was given as to why the amount had been refunded and why the letter of intent had not been issued. Thereafter, fresh e-auction notice was issued for 27.06.2023 and the base price of the booth in question was fixed at Rs.97,79,000/-.

4. Resultantly, challenge was raised that there was no need to auction as the petitioner had already bidded much higher than the reserve price and there was no valid reason and neither he had been communicated for cancellation except refunding the amount. Reliance was placed upon Clause No.31 of the policy dated 20.07.2022 (Annexure P-1) that the earnest money of the unsuccessful bidders was to be refunded in three days except the highest bidder and the competent authority was to take a decision within 30 days from the date of e-auction and, therefore, it amounted to a concluded contract.

5. The defence taken by the respondent authority-HSVP was that the bid of the petitioner was examined on the file and it was found that due to error in MIS (software of HSVP), wrong reserve price was fixed and, therefore, the competent authority had decided to cancel the auction and refund 10% of the amount deposited. The ICICI bank had been requested vide letter dated 25.05.2023 to refund the amount and the same had been received by the petitioner on 05.06.2023. Reliance was placed upon Clause No.17 of the e-auction policy that the competent authority reserved the right to accept or reject any bid or t

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