Auction of government land

2013 SCMR 1611 SUPREME-COURT Judicial Precedent

Art. 199Auction of government landBid, rejection ofCompetent authority exercising its discretion to reject a bidInterference in such discretion by the High Court in its constitutional jurisdictionExtentSuit property owned by Provincial Government was put to auctionPlaintiff offered a bid of Rs. 21,500 per marla for the suit property, which as per record was the highest bid

Concerned District Housing Committee ("the Housing Committee), however, decided that any bid below Rs. 22,000 shall not be accepted, whereafter plaintiff approached the District Khidmat Committee ("the Khidmat Committee")

Said Committee recommended that plaintiff be allowed to enhance the bid amount to Rs. 24,000 per marla and the same be accepted, however the Housing Committee did not agree with the recommendation of the Khidmat Committee and decided that suit property should be put to re-auction

Plaintiff challenged such decision of the Housing Committee by way of a civil suit before Trial Court, which was decreed in his favour

Appellate Court, however reversed findings of Trial Court

High Court reversed the findings of the Appellate Court

Validity

Terms and conditions of auction stipulated that the competent authority may during the course of proceedings reject any bid without assigning any reason and further that the acceptance of the highest bid shall be subject to the approval of the competent authority as specified in the auction notice

Auction notice mentioned that competent authority was the Housing Committee

High Court while reversing the judgment of the Appellate Court did not examine the effect of terms and conditions of the auction

Exercise of discretion by relevant authorities was not amenable to interference in writ jurisdiction (of High Court) unless the same was arbitrary, fanciful or violative of any of the fundamental rights

Impugned judgment of High Court was set aside in circumstances and Supreme Court directed that (bid) amount deposited by the plaintiff should be returned to him

Appeal was allowed accordingly.