JUDGMENT :

Vikramajit Sen, J.

These Appeals assail the Judgment dated 20.9.2005 of the Division Bench of the Punjab and Haryana High Court in CWP No. 9621 of 2004. The factual matrix is that pursuant to an Auction Notice dated 1.5.2004 issued by the Managing Director, Punjab State Leather Development Corporation Ltd., several properties, of which we are only concerned with two, were to be put to a public auction. The salient terms as contained in the auction Notice required the interested persons to deposit an amount of Rs. 2,00,000/- as Earnest Money; the successful bidder would have to deposit twenty five per cent of the auction amount at the conclusion of the bidding, and the remaining amount within thirty days of the approval of the bid by the Government. It is not disputed that the two Respondents/Writ Petitioners had deposited the Earnest Money together with twenty five per cent of the auction bids which, admittedly, were only marginally above the reserve price fixed by the Competent Authority. In respect of the Hide Flaying and Carcass Utilization Centre, Jhabal Road, Village Fathepur, Amritsar the reserve price was Rs. 45.50 lakhs and the highest (subject) bid was Rs. 46 lakhs; and for Tanning Centre Jhabal Road, Village Fathepur, Amritsar the reserve price was Rs. 37.25 lakhs and the highest (subject) bid was Rs. 38.10 lakhs.

2. However, the notings disclose that a certain person, referred to as Mr. Walia had orally complained that the successful bidders had promised to associate him in their venture as their partner, but had thereafter resiled from this commitment. Shri Walia was obviously a disgruntled party, and any official with a modicum of experience would not require superlative sagacity to discount or ignore his complaint. This is especially so since, admittedly, Shri Walia had been called upon to file his complaint in writing, but which he declined to do.

3. Without conveying to the Respondents the reasons for not accepting their bids, being the highest offer received in the course of the auction process, a decision was taken by the Appellant to re-auction the said two properties. This was despite the fact that the Chairman-cum-Managing Director of the Punjab State Leather Development Corporation Ltd. had recorded, on 15.6.2004, that the bids of the Respondents were not only the highest, but were also higher than the reserve price. The notings of the Chairman-cum-Managing Director in fact do not recommend that the offers should be rejected; instead it solicits acceptance/approval of the Government through its Director, Industries and Commerce. However, when the case was submitted to the Director, Industries and Commerce, he opined that a re-auction should be conducted as the two subject bids were only marginally higher than the reserve price. Indubitably, the Impugned Order mentions instances where bids were not accepted because they were only marginally higher than the reserve price; but failing to give due weightage and consideration to those instances where similar bids had in fact been accepted.

4. There can be no gainsaying that every decision of an administrative or executive nature must be a composite and self sustaining one, in that it should contain all the reasons which prevailed on the official taking the decision to arrive at his conclusion. It is beyond cavil that any Authority cannot be permitted to travel beyond the stand adopted and expressed by it in the impugned action. If precedent is required for this proposition it can be found in the celebrated decision titled Mohinder Singh Gill v. The Chief Election Commissioner, New Delhi [1978] 2 SCR 272. of which the following paragraph deserves extraction:

"8. The second equally relevant matter is that when a statutory functionary makes an order based on certain grounds, its validity must be judged by the reasons so mentioned and cannot be supplemented by fresh reasons in the shape of affidavit or otherwise. Otherwise, an order bad in the beginning may,