HIGH COURT OF ORISSA
B.R.SARANGI, S.K.PANIGRAHI, JJ
NETRANANDA BEHERA – Appellant
Versus
SRI SRI DHABALESWAR – Respondent
WP(C)/13874/2014
An auction can be cancelled if there is reason to believe that there has been fraud or collusion among the bidders.
Headnote:
AUCTION - FORFEITURE OF EMD - TENDER FIXING - [Section 17(1)(a) of the Orissa Debottar (Administration) Act, 1954]
Fact of the Case:
The petitioner deposited EMD to participate in an auction sale of a Bhoga shop inside the premises of Sri Sri Dhabaleswar Dev. The petitioner and another bidder were present at the auction but only the petitioner participated in the bid with an offer of Rs.4,00,000/-. The other bidder remained silent. The officer conducting the auction cancelled the auction due to the low bid and suspected tender fixing. The EMD of both bidders was forfeited.
Finding of the Court:
The court found that the conduct of the petitioner and the other bidder indicated tender fixing. The petitioner remained silent without further participating in the bid, while the other bidder did not offer any bid money. The court held that the officer conducting the auction was justified in cancelling the auction and forfeiting the EMD.
Issues: Whether the auction was validly cancelled due to tender fixing.
Ratio Decidendi: The court relied on Section 17(1)(a) of the Orissa Debottar (Administration) Act, 1954, which empowers the officer conducting an auction to cancel the auction if there is reason to believe that there has been any fraud or collusion among the bidders.
Final Decision: The court dismissed the petitioner's writ petition seeking a refund of the EMD.
1
IN THE HIGH COURT OF ORISSA AT CUTTACK
W.P.(C) No. 13874 of 2014
Netrananda Behera
…..
Petitioner
Mr. D. Mahapatra, Advocate
Vs.
Sri Sri Dhabaleswar Thakur
& Anr.
…..
Opposite parties
Mr. T. Pattnaik, ASC
CORAM:
DR. JUSTICE B.R. SARANGI
MR. JUSTICE S.K. PANIGRAHI
ORDER
12.01.2022
Order No.
3
This matter is taken up through video
conferencing mode.
2.
Heard Mr. D. Mahapatra, learned counsel for
the petitioner and Mr. T. Pattnaik, learned Additional
Standing Counsel for the State.
3.
The petitioner has filed this writ petition
seeking direction to opposite party no.1 to refund the
EMD amount of Rs.77,440/- immediately with
interest accrued thereon.
4.
Mr. T. Pattnaik, learned Additional Standing
Counsel for the State contended that the petitioner
deposited a sum of Rs.77,440/- as EMD with an
intention to participate in the proposed auction sale of
“Bhoga shop” inside the premises of Sri Sri
2
Dhabaleswar Dev, Bije Mancheswar under Athagarh
Debottar scheduled to be held on 18.03.2014 at 11
A.M. in the office of the Executive Officer, Debottar
& Sub-Collector, Athagarh in response to notice
published vide letter dated 06.03.2014. As per the
schedule, auction process was held at 11 A.M. and
the Assistant Collector was authorized to conduct the
same. Two bidders, namely, Netrananda Behera and
Anjan Kumar Behera, who were present at the spot,
participated in the bid with Rs.4,00,000/- only and
stagnated his offer at the opening bid till the entire
process was completed. The other applicant was
though present did not offer any bid money till
completion of the auction sale but remained as a
silent spectator. It is contended that the conduct of
the petitioner in this case was surprising and pointed
to the conclusion that both bidders present in the
auction sale were involved in fixing of the tender
according to their plan and programme. The
petitioner remained silent completely without further
participating in the bid. The officer, who was
conducting the auction sale being authorized,
expressed his displeasure relating to the manners in
which the bid was offered by only one bidder and the
other kept mum. The officer conducting the auction
3
sale cancelled the auction on the ground that the bid
was less than the offset price fixed for the
“Bhogshop” and there was auction fixing, which is
quite clear from the conduct of the bidders.
Therefore, the EMD of both the bidders was forfeited
on the ground of tender fixing.
5.
In that view of the matter, this Court is not
inclined
to
entertain
this
writ
petition
and
accordingly, the same is dismissed.
6.
As the restrictions due to resurgence of
COVID-19 situation are continuing, learned counsel
for the parties may utilize a print out of the order
available in the High Court’s website, at par with
certified copy, subject to attestation by the concerned
advocate, in the manner prescribed, vide Court’s
Notice No.4587 dated 25th March, 2020, as modified
by Court’s notice no. 4798 dated 15th April, 2021,
and Court’s Office Order circulated vide Memo
Nos.514 and 515 dated 7th January, 2022.
Alok
……………………...
(DR. B.R. SARANGI)
JUDGE
…………….…………..…….
(S.K. PANIGRAHI)
JUDGE
4