9911796707
TMI Blog2022 (3) TMI 1622X X X X Extracts X X X X X X X X Extracts X X X X ..... ccept the highest tender of bid. The acceptance of the highest bid or highest bidder is always subject to conditions of holding public auction and the right of the highest bidder is always provisional to be examined in the context in different conditions in which the 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. Undisputedly, the provisional bid, in the instant case, was not confirmed by the competent authority (Sales Commissioner) and not being accepted after recording its due satisfaction by an order dated 2nd July, 1993 and the decision of the authority in passing the order of cancellation of the auction bid was scrutinized/examined by the appellate/revisional authority and the discretion exercised by the competent authority in taking decision of cancellation was upheld at later stages. 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 : 10:00 A.M Khasra No. : Area 185//22/2 : 7-0 191 : 7-10 12/2min : 3-12 169//23/3/1 : 4-17 Kitte 4 22-17 Total Kitte 4 22-17 Sd/- Tehsildar Revenue-cum-M.O. Malerkotla 4. It has not been pleaded that the auction notice was given its wide publicity and affixed at the conspicuous place in the locality where the property is situated. 5. The Tehsildar Sales, Malerkotla conducted public auction on 4th June, 1993 and this fact is not disputed that only three bidders had participated in the bidding process and bid of the Respondent, Mehar Din was the highest bid of Rs. 3,90,000/-, which was provisionally accepted by the Tehsildar. Pursuant thereto, 1/5th of the bid amount, i.e., Rs. 78,000/- was deposited by the Respondent at the spot subject to its confirmation by the Sales Commissioner in terms of the procedure for sale by public auction provided Under Rule 8(1)(h) of Chapter III of the Rules 1976. 6. On perusal of records, the competent authority (Sales Commissioner) was of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e persons. Collusion between the Sales Agency and the possible vendors is likely. Thirdly, this being sub-urban land as the State (Tehsildar Sales) mentions, the land could have fetched Rs. 8-10 lakhs. Even basically, the Sales Commissioner is not bound to accept the price settled in the auction because he is to always strive for a better price. 5. Therefore, 1 accept the appeal and set aside the orders dated 17.09.2003 of the Commissioner, Patiala Division. The land is to be re-auctioned after proper munadi. 10. The order passed by the Financial Commissioner dated 24th August, 2006 became the subject matter of challenge at the instance of the Respondent by filing writ petition before the High Court Under Articles 226 and 227 of the Constitution. 11. The High Court proceeded on the premise that the reasons adopted by the Financial Commissioner were based on conjectures and surmises and once the auction purchaser's bid was higher than the reserved price which was notified at site and more than the price of the last auction and in the absence of any irregularity or illegality being committed in the auction proceedings, there is no reason for vitiating the auction process and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le and every such notice shall indicate the date, time and place of the proposed sale, the description of the urban property to be sold, its location and boundaries, where possible the terms and conditions of the sale and any other particulars which the Tehsildar (Sales) or Naib-Tehsildar (Sales) considers material. One copy of the notice shall be affixed at a conspicuous place in the locality where the property is situate. The notice of the intended sale shall also be given by beat of drum in the locality, where such property is situate. (d) Where the Tehsildar (Sales) or Naib-Tehsildar (Sales) thinks it desirable that the notice of the intended sale of an urban property should also be published in the daily newspapers, he may get such notice published accordingly before putting it to auction. (e) The Tehsildar (Sales) or Naib-Tehsildar (Sales) may by an order in writing and after recording reasons for so doing withhold sale of any urban property notified for sale. (f) An urban property put to auction shall be sold subject to a reserve price fixed in respect thereof, but such reserve price shall not be disclosed. (g) The Tehsildar (Sales) or Naib-Tehsildar (Sales) may, for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... auction sale, directed to initiate the process of re-auction and further observed that he should be informed in advance and intended to remain present at the time of auction by order dated 2nd July, 1993. That apart, it is not disputed that total applicants were fourteen but only three bidders had participated in the bidding process. 16. Proceeding on the said premise, the appellate authority, after due appraisal of record, confirmed the action of the Sales Commissioner in cancelling the auction and was finally confirmed by the Financial Commissioner (the revisional authority), under its order dated 24th August, 2006, of which reference has been made. 17. From the Scheme of Chapter III of Rules 1976, it is apparent and explicit that even if the public auction has been completed to the highest bidder, no right is accrued till the confirmation letter is issued to him as the acceptance of the highest bid is provisional, subject to its confirmation by the competent authority. Undisputedly, the competent authority (Sales Commissioner) has failed to confirm the bidding process and after recording its satisfaction cancelled the auction bid under its order dated 2nd July, 1993. 18. Thi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he joints is a necessary concomitant for an administrative body functioning in an administrative sphere or quasi-administrative sphere. However, the decision must not only be tested by the application of Wednesbury principle of reasonableness (including its other facts pointed out above) but must be free from arbitrariness not affected by bias or actuated by mala fides. (6) Quashing decisions may impose heavy administrative burden on the administration and lead to increased and unbudgeted expenditure. (emphasis in original) 21. The exposition of law on the subject has been consistently followed by this Court even in the later decisions holding that superior Courts should not interfere in the matters of tenders, unless substantial public interest was involved or the transaction was malafide. It was consistently stressed by this Court that the need for overwhelming public interest should always be kept in mind to justify judicial intervention in contracts involving the State and its instrumentalities and while exercising power of judicial review in relation to contracts, the Courts should consider primarily the question whether there has been any infirmity in the decision-making ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... best judge of its requirements and, therefore, the court's interference should be minimal. The authority which floats the contract or tender, and has authored the tender documents is the best judge as to how the documents have to be interpreted. If two interpretations are possible then the interpretation of the author must be accepted. The courts will only interfere to prevent arbitrariness, irrationality, bias, mala fides or perversity. With this approach in mind we shall deal with the present case. 24. The law on the subject is settled that the Courts being the custodian of fundamental rights are under an obligation to interfere where there is arbitrariness, irrationality, unreasonableness, malafides and bias, if any, but at the same time, the Courts should exercise the power of judicial review with a lot of restraint, particularly in contractual and commercial matters. 25. Undisputedly, the provisional bid, in the instant case, was not confirmed by the competent authority (Sales Commissioner) and not being accepted after recording its due satisfaction by an order dated 2nd July, 1993 and the decision of the authority in passing the order of cancellation of the auction bid ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
