9911796707
TMI Blog2022 (3) TMI 1622X X X X Extracts X X X X X X X X Extracts X X X X ..... as "the Rules 1976"), framed by the State Government in exercise of its power conferred Under Section 18 of the Punjab Package Deal Properties (Disposal) Act, 1976. Part III of Rules 1976 provides for transfer of urban properties. 3. The Appellants being the custodian of the subject property initiated the process of putting the property to public auction through the notice published in Punjabi Tribune of 17th May, 1993, the extract of auction notice is reproduced as under: Punjabi Tribune, Monday, 17 May 1993 AUCTION NOTICE General public is informed that the following Sub Urban Land of Tehsil Malerkotla will be auctioned at the time and place given below. 1/5th of the bid amount shall be given at the spot in cash. The remaining conditions of the auction will be fold on the spot. Town : Malerkotla Place of Auction : At the spot Dated : 04.06.93 Time &n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rur, who after perusal of the record, returned a finding that on the date of auction, i.e. 4th June, 1993 conducted by the Tehsildar Sales, only three persons had participated in the bidding process and arrived to a conclusion that the Tehsildar Sales had not conducted the bidding process properly and adequate publicity was not made and under its order dated 24th October 1994, confirmed the order of the Sales Commissioner cancelling the bid. 8. The order of the Chief Sales Commissioner, Sangrur dated 24th October, 1994 came to be challenged by the Respondent Under Section 10 of the Act 1976. The Divisional Commissioner, after recording a finding that no opportunity was afforded to the bidder before passing of the order of cancellation of the bid dated 4th June, 1993 and after 1/5th of the bid towards earnest money was deposited and being the highest bidder, no reasons were assigned for cancellation and accordingly by its order dated 17th September, 2003, set aside the order of cancellation of the competent authority dated 2nd July, 1993 and so also of the appellate authority dated 24th October, 1994. 9. The order dated 17th September, 2003 became the subject matter of challenge U ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is not in dispute that the price as offered by the Petitioner-auction purchaser was much more than the price of last auction and there is no material produced by the State to show that there was any irregularity or illegality in the auction proceedings that might have taken place due to which it stood vitiated. Still further, nothing could be shown that the value of the land was Rs. 8 to 10 lacs as noticed by the Financial Commissioner in the impugned order. Furthermore, no material has been shown which may impel to infer that there was any connivance between the three persons who had given bid and that the price as offered by the Petitioner was not the real price of the land in question. The impugned order dated 24.08.2006 is thus, legally unsustainable and is accordingly set aside. The writ petition is allowed and it is directed that the competent authority shall confirm the sale and complete all formalities within a period of three months from the date of receipt of a certified copy of this order. 12. We have heard learned Counsel for the parties and with their assistance perused the material placed on record. 13. The Scheme of Chapter III of Rules, 1976 is related to transfe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mount of bid money exceeds the said amount of Rs. 500, he shall be required to pay an amount equal to 20 per cent of the bid as earnest money and to pay the balance within fifteen days of the date of receipt of intimation of acceptance of the bid. If this amount is not paid, the bid shall be deemed to have been cancelled and the urban property put to re-auction. The acceptance of the highest bid in respect of which a deposit has been made shall be provisional, subject to the confirmation of sale by the Sales Commissioner, provided that no bid shall be finally accepted until after the expiry of ten days from the date of auction. 14. As per Rule 8(1)(c), auction notice has to be given wide publicity and one copy of the notice is to be affixed at the conspicuous place in the locality where the property is situated and as per Rule 8(1)(h), if the bid money exceeds Rs. 500/-, the bidder shall be required to pay an amount equal to 1/5th of the bid amount as earnest money and acceptance of the highest bid in respect of which the deposit has been made shall be provisional, subject to confirmation by the Sales Commissioner. 15. It is not disputed that the auction sale conducted by the Teh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... auction has been held. In the present case, no right had accrued to the Respondent even on the basis of statutory provisions as being contemplated Under Rule 8(1)(h) of Chapter III of the Scheme of Rules, 1976 and in terms of the conditions of auction notice notified for public auction. 19. The scope of judicial review in the matters of tenders/public auction has been explored in depth by this Court in a catena of cases. Plausible decisions need not be overturned and, at the same time, latitude ought to be granted to the State in exercise of its executive power. However, allegations of illegality, irrationality and procedural impropriety would be enough grounds for Courts to assume jurisdiction and remedy such ills. 20. In Tata Cellular v. Union of India (1994) 6 SCC 651 it was held that judicial review of government contracts is permissible in order to prevent arbitrariness or favouritism. It was fearlessly opined in this case as under: 94. The principles deducible from the above are: (1) The modern trend points to judicial restraint in administrative action. (2) The court does not sit as a court of appeal but merely reviews the manner in which the decision was made. (3) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts, certain special features should be borne in mind. A contract is a commercial transaction. Evaluating tenders and awarding contracts are essentially commercial functions. Principles of equity and natural justice stay at a distance. If the decision relating to award of contract is bona fide and is in public interest, courts will not, in exercise of power of judicial review, interfere even if a procedural aberration or error in assessment or prejudice to a tenderer, is made out. The power of judicial review will not be permitted to be invoked to protect private interest at the cost of public interest, or to decide contractual disputes. The tenderer or contractor with a grievance can always seek damages in a civil court. Attempts by unsuccessful tenderers with imaginary grievances, wounded pride and business rivalry, to make mountains out of molehills of some technical/procedural violation or some prejudice to self, and persuade courts to interfere by exercising power of judicial review, should be resisted. Such interferences, either interim or final, may hold up public works for years, or delay relief and succour to thousands and millions and may increase the project cost manifold ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... totally arbitrary or unreasonable, and it was not open for the High Court to sit like a Court of Appeal over the decision of the competent authority and particularly in the matters where the authority competent of floating the tender is the best judge of its requirements, therefore, the interference otherwise has to be very minimal. 27. To the contrary, the limited scope of judicial review for which interference could have been permissible to prevent arbitrariness, irrationality, bias, malafides or perversity, if any, in the approach of the authority while dealing with the auction proceedings, was never the case of the Respondent at any stage. The High Court has recorded a finding to the contrary that the Appellants have failed to show any irregularity or illegality in the auction proceedings and in the absence whereof, the auction proceedings could not be held to be vitiated. The premise on which the High Court has proceeded in recording a finding, particularly, in the matters of auction of public properties is unsustainable in law and that apart, it is also not in conformity with the Scheme of auction of public properties as defined under Chapter III of Rules 1976. 28. In our c ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
