Key Points: - Petitioner Umesh Kumar Vyas filed writ petition challenging cancellation of e-auction for Warehouse No.9 in Santosh Nagar, Phalodi, where he was highest bidder at Rs.65,41,997/- against reserve price of Rs.24,82,007/- (!) (!) (!) - Municipal Council cancelled auction on 04.12.2024 due to lower bid compared to Warehouse No.1 (Rs.1,91,00,000/-) and issued fresh e-auction notice with same reserve price (!) (!) - Condition No.4 required bid sanction/rejection within 5 working days from auction; decision taken beyond this period (auction ended 22.11.2024) (!) (!) (!) - Conditions No.5 and 12 reserved right to accept/reject bids to Chairperson/Commissioner without reasons; RTPP Rule 72 allows rejection prior to contract award (!) (!) (!) - Court relied on Golden Food Products (Supreme Court) holding that highest bid above reserve cannot be discarded merely expecting higher bid without valid reason (!) (!) - No evidence of irregularity, fraud, or objection in auction process; same reserve price retained in fresh notice (!) - Writ petition allowed; respondents directed to issue allotment order to petitioner for Warehouse No.9 and complete process (!)

What is the effect of failing to decide on acceptance or rejection of a bid within the 5 working days stipulated in Condition No.4 of an e-auction notice?

What are the rights of the highest bidder when their bid exceeds the reserve price in a public auction?