AMRIT LAL MAHAJAN Vs. STATE OF PUNJAB

JUDGEMENT

(1.) IN this bunch of three petitions (details of which have been given in the footnote*) a short question of law has been raised as to whether the Improvement Trust, respondent No. 3 refused to confirm the auction of the site in question, on the ground that the price fetched by it is diminutive. It is appropriate to mention at the outset that when the matter came up for consideration, the Division Bench has confined issuance of notice of motion to prayer 'B' made in the writ petition. According to prayer 'B' quashing of resolution No. 43 dated 31.05.2006 (Annexure P-5) as also letters dated 28.09.2006 and 28.12.2006 (Annexures P-6 and P-7) have been sought. The Improvement Trust, respondent No. 3 has refused to accord approval to Shop-cum-Flats site No. 3, 4 and 5 on the ground that the price of these sites at Rajiv Gandhi Nagar, Bathinda is diminutive.

(2.) BRIEF facts of the case necessary for disposal of the instant petition are that Improvement Trust, Bathinda, respondent No. 3 (herein after to be referred as 'Trust') issued advertisement on 10.05.2006 for the sale of Shop- cum-Flats (SCFs) and booths by way of auction in the Rajiv Gandhi Nagar Scheme and Transport Nagar Scheme framed by the Trust. In Rajiv Gandhi Nagar Scheme, three SCFs site Nos. 3 to 5 measuring 120 sq. yards were advertised to be sold by way of auction at a reserve price of Rs. 5,40,000/- each. Likewise, five booths (site No. 11 to 15), each measuring 22.41 sq. yards were also advertised to be sold by an open auction at the reserve price of Rs. 1,01,000/- each. According to clause (iii) of the advertisement, it was expressly provided that the highest bid was to be subject to approval to be accorded by the Trust. The petitioner deposited Rs. 60,000/- as earnest money on 10.05.2006 to enable him to participate in the auction of SCF No. 3 vide receipt dated 10.05.2006 (Annexure P-3). The petitioner being the highest bidder at Rs. 6.5 lacs had deposited a sum of Rs. 1,62,500/- representing 25% of the total auction price was deposited by him on 11.05.2006 (Annexure P-4). It is appropriate to mention that the SCF Site No. 4 and 5 were auctioned for Rs. 7 lacs each. On 31.05.2006, the Trust passed a resolution No. 43 (Annexure P-5) rejecting the auction in respect of SCF Site Nos. 3 to 5 of Rajiv Gandhi Nagar on the ground that the price fetched was too less in comparison to the price fetched in the earlier auction.

(3.) THE petitioner has made an attempt to show that SCF Site No. 1 in Rajiv Gandhi Nagar, Gurukul Road, Bathinda had fetched over 16 lacs as against the reserve price of Rs. 5,40,000/-. Likewise, in respect of booth sites, the prices were quite high and it fetched Rs. 4 lacs as against the reserve price of 1,01,000/-.