Non-approval of auction bids by Managing Director rendered the bidding process incomplete, with absence of sufficient competition justifying cancellation under public interest.

1. W. P. (C) Nos. 1602, 1585, 1657, 1658, 1659, 1660, 1661, 1662, 1663, 1664, 1665, 1666, 1667, 1668, 1669, 1670, 1671, 1672, 1673, 1690, 1691, 1712, 1713, 1714, 1715, 1716, 1717, 1718, 1719, 1720, 1721, 1722, 1723, 1724, 1725, 1726, 1727, 1728, 1831, 1839, 1842, 1843, 1844, 1845, 1846, 1862 and 1863 of 2012, involve common facts as well as one and the same question of law, require to be decided by common order.

2. The cause of action, in all these petitions, arose from the order dated 30-8-2012, whereby auction of 56 shops of Krishi Upaj Mandi Samiti, Durg (for short 'the Samiti'), was cancelled.

3. As all the facts are common, the facts and documents referred in the first petition, i.e. W. P. (C) No. 1602/2012, are being taken for consideration.

4. The Samiti issued a notice inviting offer (for short 'the NIG') for leasing out 56 sundry shops in Navin Mandi Premises, Dhamdha Road, Durg on 7-1-2011 (Page 27). It was provided that the bid may be submitted by registered post on or before 29-1-2011 (Saturday) during office hours. There should be a separate bid for each sundry shop. The requisite fee will be deposited by 28-1-2011. The relevant conditions, inter alia, in the NIO was that the bid will be opened on 31-1-2011 at 11 O'clock in respect of Sundry Shops No. 1 to 28 and on 1-2-2011 at the same time, in respect of Sundry Shops No. 29 to 56. The successful bidders will be required to deposit a sum of Rs. 03 lacs as security amount within a period of 15 days from the date of information. The successful bidders were required to deposit the difference of caution money (Dharohar Rashi) and the security amount (total Rs. 05 lacs) and the bid amount after removal of the boundaries, and the agreement was to be executed within a period of 30 days. The petitioners were the successful bidders. According to the petitioners, the security amount of Rs. 03 lacs was deposited within a period of 15 days from the date of information to them. The remaining amount could not be deposited and the agreement was also not executed.

5. In the meantime, the impugned order dated 30-8-2012 (Annexure P / 1) was passed, quashing the auction in question. Subsequently, by letter dated 1-9-2012 (Annexure P / 2), the petitioners were informed in respect of cancellation of the auction proceedings of 56 sundry shops. Thus, these petitioners.

6. Shri Prashant Jayaswal, learned Senior Advocate, with Shri Saurabh Jain & Shri Anshuman Shrivastava, Shri P. S. Koshy with Shri Ashish Surana and Shri T. K. Tiwari, learned counsel appearing for the respective petitioners, would submit that the petitioners have deposited a sum of Rs. 03 lacs within a period of 15 days from the date they were informed by the Samiti. Initially, the petitioners were asked to deposit the difference of the total amount of bid. All the successful bidders formed an association namely, Krishi Upaj Mandi Vyapari Sangh, Durg (for short "the Association") on 8-9-2011 (Annexure - P / 7). The Coordinator of the Association informed the Secretary of the Samiti objecting demand of balance amount before completion of the developmental work. The Secretary of the Samiti by letter dated 10-9-2011 (Annexure - P / 8) granted one more month's time to deposit the required amount. On 28-9-2011 (Annexure - P / 9), the Association wrote a letter to the Secretary of the Samiti not to demand the balance amount before developing the area. The Secretary of the Samiti issued a notice dated 25-10-2011 (Annexure - P / 10) that new notices for depositing the balance amount