Judgment

RANGANATH MISRA, J.- Special leave granted.

2. Three applications were filed under Article 226 of the Constitution before the High Court of Bombay by the respective appellants before us challenging the rejection of their highest offers in response to invitation by public tender without assigning any reason for the same as arbitrary, unconstitutional and contrary to Rule of Law.

3. The respondent a government company within the meaning of Section 617 of the Companies Act has been constituted as the New Town Development Authority under sub-section (3)(A) of Section 113 of the Maharashtra Regional Town Planning Act, 1966. The respondent is empowered to dispose of land vested in it and the respondent has formulated with the approval of the State Government under Section 159 of the said Act a code for regulating, inter alia, disposal of land. Regulation 4 provides:

"4. The Corporation may dispose of plots of lands by putting to auction or considering the individual applications as the Corporation determines from time to time."

4. According to the appellants the normal practice adopted by the Corporation is to invite tenders for the disposal of specified plots which the Corporation