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2026 Supreme(Online)(Raj) 11985

HIGH COURT OF RAJASTHAN (JODHPUR BENCH)
Kuldeep Mathur, J
Nand Ram – Appellant
Versus
State Of Rajasthan – Respondent
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Advocates:
For the Appellants/Petitioners: Manish Pitaliya
For the Respondents: Manish Tak, Dilip Solanki, Kuldeep Vaishnav

Revisional authorities cannot cancel long-settled auction transactions of bona fide purchasers based on alleged minor procedural lapses after an inordinate delay, especially when no fraud or loss to the public exchequer is proven and the initial proceedings were conducted with administrative approval.

Headnote:(A) Rajasthan Panchayati Raj Act, 1994 - Section 97 - Rajasthan Panchayati Raj Rules, 1996 - Rules 142, 143, 166 and 167 - Cancellation of auction - Propriety of revisional order - Auction proceedings held transparently and following due procedure - Bona fide purchasers in possession for over six years - No allegations of fraud or revenue loss - Revisional authority cannot exercise power in a capricious or whimsical manner to unsettle crystallized property rights after inordinate delay - Impugned order cancelling sale-deeds without sufficient cause or justification is arbitrary and unsustainable in law. (Paras 2.1, 2.5, 5.3, 5.4, 6)

(B) Administrative Law - Delay and Laches - Exercise of revisional jurisdiction - Mere procedural irregularity cannot be a ground to invalidate a long-settled transaction involving innocent third-party purchasers, especially when the authorities themselves were privy to the procedure followed. (Paras 5.3 and 5.4)

Facts of the case:
A local body conducted an open auction of residential plots following an approved scheme and published notifications. Successful bidders transferred full consideration, and registered sale-deeds were executed. The petitioners remained in peaceful possession for several years, raising permanent constructions. Years later, a revisional authority initiated proceedings under the governing statute to cancel the allotments, alleging failure to follow specific technical procedural rules. Aggrieved by the rescinding of their titles, the purchasers filed writ petitions challenging the revisional order.

Findings of Court:
The court found that the auction was conducted in a transparent manner with the prior approval of the competent authorities. No evidence of fraud, misrepresentation, or financial loss to the public exchequer existed. The attempt to cancel the sale-deeds after a lapse of nearly seven years violated the principles of equity and legitimate expectation. The revisional order was deemed arbitrary and lacking in jurisdiction.

Issues: The primary issues were whether the revisional authority could cancel validly auctioned property rights after an inordinate delay based on alleged minor procedural irregularities, and whether the rights of bona fide purchasers could be unsettled without evidence of fraud or material illegality.

Ratio Decidendi: The court held that where an auction process is transparent, involves the payment of valuable consideration, and creates vested rights that have remained undisturbed for a significant period, the revisional authority cannot, in a capricious manner, exercise its power to invalidate those titles in the absence of fraud or substantial illegality attributable to the purchasers.

Result: Petitions allowed; impugned orders quashed and set aside; property rights and titles restored.

Table of Content
1. procedural compliance in public auction processes. (Para 1 , 2)
2. challenge to revisionary authority and administrative delay. (Para 3 , 4)
3. protection of bona fide purchasers against delayed revisionary cancellation. (Para 5 , 6)
4. formal disposal of writs and restoration of property rights. (Para 7)

Order

1. By way of the present batch of writ petitions, the petitioners have laid challenge to the legality, propriety, and correctness of the impugned order dated 18.06.2019 passed by the learned District Collector, Chittorgarh, in Revision Case Nos.65/2018, 47/2018, 49/2018, 51/2018, 52/2018, 71/2018, 12/2018, 48/2018, 54/2018, 32/2018, 15/2018, 38/2018, 42/2018, 37/2018, 17/2018, 20/2018, 68/2018, 45/2018, 35/2018 63/2018, 28/2018, 73/2018, 25/2018, 21/2018, 61/2018, 70/2018, 30/2018, 72/2018, 66/2018, 41/2018, 36/2018, 67/2018, 26/2018, 44/2018, 23/2018, 60/2018, 62/2018, 29/2018 and 34/20118 whereby the revision petitions preferred by respondent No.3 under Section 97 of the Rajasthan Panchayati Raj Act, 1994 (hereinafter referred as ‘the Act of 1994’) came to be allowed, resulting in the cancellation of the pattas and sale-deeds executed in favour of the petitioners.

1.1. Since all the writ petitions emanate from the same impugned order, involve identical questions of law and facts, and pertain to a common controversy arising out of the same auction proceedings conducted by the Gram Panchayat, this Court has deemed it expedient, appropriate, and in furtherance of judicial discipline and consistency to club, hear, and decide all the petitions together by a common order.

2. The facts giving rise to the present lis, succinctly stated, are that the Gram Panchayat, Satkhanda, in exercise of its statutory powers and in consonance with the provisions of the Rajasthan Panchayati Raj Rules, 1996 (hereinafter referred to as “the Rules of 1996”), issued a public auction notice duly published in a widely circulated newspaper, inviting bids for the sale of sixty-three residential plots, each measuring 30×45 feet, situated in Araji No. 918/1848 of village Satkhanda. The public auction was scheduled to be held on 22.12.2011 and 23.12.2011.

2.1. Pursuant to the said auction notice, the petitioners, along with other interested participants, deposited the requisite security amount of ₹10,000/- and participated in the auction proceedings in a transparent and competitive manner. Upon conclusion of the auction, the petitioners emerged as the highest and successful bidders for the respective plots. It is significant to note that the auction fetched prices substantially higher than the prevailing District Level Committee (DLC) rates, thereby ensuring maximum financial benefit to the Gram Panchayat.

2.2. Prior to the conduct of the auction, the Gram Panchayat had scrupulously complied with all statutory requirements. Vide communication dated 20.09.2011 (Annexure-2), the Gram Panchayat sought approval from the Development Officer, Panchayat Samiti, Nimbaheda, for the proposed auction scheme. In response thereto, the Development Officer, vide order dated 03.10.2011 (Annexure-3), accorded approval to the scheme and directed the Gram Panchayat to proceed strictly in accordance with Rules 142 to 163 of the Rules of 1996. Public notice was duly published, objections were invited from the general public, and no objections were received warranting any interference.

2.3. After successful completion of the auction proceedings on 22.12.2011 and 23.12.2011, the Gram Panchayat, vide letter dated 27.12.2011 (Annexure-4), forwarded the auction proceedings to the Panchayat Samiti, Nimbaheda, seeking approval of the sale. The Development Officer, Panchayat Samiti, Nimbaheda, after due consideration, granted approval vide order dated 11.01.2012 (Annexure-5) and directed the Gram Panchayat to proceed further in accordance with Rule 167 of the Rules of 1996.

2.4. Consequent upon the aforesaid approvals, registered sale-deeds were executed in fav

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