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Eva Agro Feeds Private Limited vs Punjab National Bank on 6 September, 2023

12. The appellant also submitted that the replies to his RTI applications establish that he had complied with all tender conditions 6 and had validly deposited the required earnest money. The cancellation of the appellant’s bid amounts to rewriting the tender after the bids were opened, which is not permitted in law. It is contrary to Article 14 of the Constitution of India as it is arbitrary, for a statutory authority to cancel a valid bid on grounds that were not mentioned in the auction brochure. That comparing the appellant’s bid with dissimilar plots (which were smaller) amounts to imposing new tender conditions after the auction. Our attention was drawn to the decision of this Court in Eva Agro Feeds (P) Ltd. vs. Punjab National Bank, (2023) 10 SCC 189 (“Eva Agro Feeds”) in which a two-judge bench of this Court (B.V. Nagarathna and Ujjal Bhuyan, JJ.) held that “…mere expectation of the Liquidator that a still higher price may be obtained can be no good ground to cancel an otherwise valid auction and go for another round of auction. Such a cause of action would not only lead to incurring of avoidable expenses but also erode the credibility of the auction process itself”. The appellant submitted that this principle applies in the present case, where the auction was cancelled arbitrarily because of a ground that was not provided in the brochure.
Supreme Court of India Cites 28 - Cited by 1 - B V Nagarathna - Full Document

Tata Motors Limited vs The Brihan Mumbai Electric Supply And ... on 19 May, 2023

In this regard, our attention was drawn to the decision of a three-Judge Bench of this Court in Tata Motors Ltd. vs. Brihan Mumbai Electric Supply & Transport Undertaking, (2023) 19 SCC 1, wherein it was observed that “courts should not use a magnifying glass while scanning the tenders and make every small mistake appear like a big blunder. In fact, the courts must give “fair play in the joints” to the government and public sector undertakings in matters of contract”.
Supreme Court of India Cites 16 - Cited by 32 - Full Document

K. Kumara Gupta vs Sri Markendaya And Sri Omkareswara ... on 18 February, 2022

In K. Kumara Gupta vs. Sri Markendaya & Sri Omkareswara Swamy Temple, (2022) 5 SCC 710, it was observed by this Court that unless and until it was found that there was any material irregularity and/or illegality in holding the public auction and/or the auction was vitiated by any fraud or collusion, it is not open to set aside the auction or sale in favour of the highest bidder on the basis of some representation made by a third party who did not even participate even in the auction proceedings and did not make any offer. If there is repeated interference in the auction process, the object and purpose of holding public auction and its sanctity would be frustrated. That unless there are allegations of fraud, collusion, etc., the highest offer received in the public offer 12 should be accepted as a fair value. Otherwise, there shall not be any sanctity of any public auction.
Supreme Court of India Cites 18 - Cited by 10 - M R Shah - Full Document

Rajasthan Housing Board And Another vs G.S. Investments And Another on 31 October, 2006

b) In Rajasthan Housing Board vs. G.S. Investments, (2007) 1 SCC 477, owing to a news item published in a newspaper that large scale bungling had taken place in the auction due to which the price fetched for the plots was much below the market rate, a direction was issued by this Court to hold a fresh auction. Such a situation did not arise in the instant case.
Supreme Court of India Cites 9 - Cited by 165 - G P Mathur - Full Document

State Of Orissa And Ors vs Harinarayan Jaiswal And Ors on 14 March, 1972

c) In State of Orissa vs. Harinarayan Jaiswal, (1972) 2 SCC 36, there was a direction to hold a re-auction as the power to accept or reject the bid was given to the highest authority in the State and the State Government was of the opinion that the price was inadequate. Possibly, in the facts of the said case, the said direction was issued by this Court.
Supreme Court of India Cites 14 - Cited by 202 - K S Hegde - Full Document

Meerut Devt.Authority vs Association Of Management Studies & Anr on 17 April, 2009

e) In Meerut Development Authority vs. Association of Management Studies, (2009) 6 SCC 171, the request of the respondent therein for allotment of remaining 20,000 square metres to them as they had acquired 37,000 square metres of land as per the reserve price, was rejected as the price quoted had been lower than the reserve price for the said remaining land and rightly so.
Supreme Court of India Cites 18 - Cited by 399 - B S Reddy - Full Document
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