No Vested Right of Highest Bidder in Auction: Allahabad HC

Vested Right of Highest Bidder in Auction-

In the instant petition, the petitioner prayed the Court

to direct the respondents to accept his bid and allot him a shop at Mandi Sthal Barauli Ameer, Agra.

The Court rejected the plea of the petitioner on the ground that the highest bidder does not acquire any vested right to get the auction concluded in his favour 

and the authority conducting the bid can reject the bid for good and sufficient reasons.

What made the petitioner approach the Court?

An advertisement was published by the respondents inviting bid for 43 shops in Mandi Sthal Barauli Ameer, Agra.

In the auction, seven shops were reserve for Scheduled Castes.

The petitioner submitted a bid of 16,50,000 for a shop under the Scheduled Tribe category.

But the petitioner’s bid was rejected because the amount offered was meager.

The District Magistrate passed a resolution approving the order of the Allotment Committee on 26.02.2020.

Subsequently, a fresh advertisement was also issued by the respondents.

Aggrieved by order of the respondent and new advertisement, the petitioner approached the Allahabad High Court.

The Allotment Committee had the power to grant approval: Consuel for the petitioner.

Learned counsel for the petitioner drew the Court’s attention to Clause 9 of the bye-laws of Avanton Viniyamawali­ 2016,

which states that even if one bid was received, the committee had the power to grant approval.

Vested Right of Highest Bidder in Auction

To arrive at a conclusion, the Hon’ble Court relied on judgements of various courts:-

Rajasthan Housing Board and another Vs. G.S.Investments and another

In this case, Hon’ble Court held that the highest bidder does not acquire rights to conclude the auction in its favour,

and it was subject to terms and conditions of auction proceedings.

Laxmikant v. Satyawan

The Court held that even if a person has put in the highest bid, no right is accru to him till he gets a confirmation letter.

Meerut Development Authority Vs. Association of Management Studies

In this case, the Hon’ble Court held

Bidder who has participated in the tender process has no other right except the right to equality and fair treatment when evaluation of bids is considered

In light of all the case laws and facts of the case, the Court consigns the Petition to record.

Case Details:-

Title: Babloo vs State of U.P & Ors

Case No.: WRIT ­ C No. ­ 11469 of 2020

Date of Order: 14.10.2020

Coram: Hon’ble Justice Surya Prakash Kesarwani and Hon’ble Justice Yogendra Kumar Srivastav

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