Court Orders Rajasthan Housing Board to Honor Compliant Highest Bid Despite "Lack of Competition" Argument
In a significant ruling, the Rajasthan High Court has directed the Rajasthan Housing Board to finalize the allotment of a prime commercial plot in Udaipur in favor of petitioner Smt. Kamla Jain, dismissing the cancellation of her bid due to "lack of competition". The judgment underscores the absence of any policy mandating rejection of single bids in e-auctions when the bid meets all stipulated conditions.
The case arose when Smt. Kamla Jain, the sole highest bidder in an e-auction for a commercial plot notified by the Rajasthan Housing Board, had her bid canceled citing "lack of competition" and "non-realization of full potential value". Despite her bid exceeding the reserve price and meeting all conditions including timely deposit of earnest money and additional percentages, the cancellation was issued based solely on the fact that it was a single bid.
The petitioner argued that the Rajasthan Housing Board's own policy dated September 3, 2020, does not permit cancellation of bids for reasons other than non-deposit of specified percentages, which was not the case here. Moreover, a prior auction for the same plot had received zero bids, highlighting the plot's lack of market interest.
Relying on a precedent judgment in the case of Smt. Kamal Jeet Kaur v. State of Rajasthan, the petitioner's counsel emphasized that the issue was squarely covered by the earlier ruling, which was upheld by both the Division Bench and the Supreme Court. The Rajasthan High Court agreed, noting that the respondents could not refute the applicability of the precedent.
The court has directed the Rajasthan Housing Board to proceed with the allotment of the plot to the petitioner and execute necessary deeds without demanding interest on delayed payments caused by the litigation. This order emphasizes the unjustified nature of the cancellation and the need to adhere to established policies in e-auction processes.
This judgment is likely to have broader implications for e-auction policies and practices, particularly in clarifying the conditions under which bids can be rejected, and ensuring fair treatment of compliant bidders in government auctions.
Bottom Line:
In the absence of specific policy mandating rejection of single bids in an e-auction, cancellation of a compliant highest bid citing "lack of competition" is unjustified.
Statutory provision(s): Rajasthan Housing Board's E-Auction Policy, Policy dated 03.09.2020
Smt. Kamla Jain v. State of Rajasthan, (Rajasthan) : Law Finder Doc Id # 2825956
