HON'BLE SRI JUSTICE C.V. NAGARJUNA REDDY W.P.Nos.14604, 14605, 14606, 14607 and 14608 of 2008 Date : 11-7-2011 W.P.Nos.14604 of 2008 Between : S.Srinivasulu Reddy s/o.S.Jaya Chandra Reddy .. Petitioner And The Vice Chairman & Housing Commissioner, A.P. Housing Board, Hyderabad and others .. Respondents Counsel for petitioners : Sri V.Manohar Rao Counsel for respondents : Sri D.Ranganatha Kumar The Court made the following: COMMON ORDER: At the Interlocutory stage, the Writ Petitions are taken up for hearing and disposal with the consent of the learned counsel for the parties. These Writ Petitions are filed for issuance of mandamus to set-aside proceedings of the respondents whereby they have cancelled the public auction held in pursuance of auction notification dated 28-03-2008 and published on 4-4-2008 in the newspapers. The respondents have issued the above mentioned auction notification for sale of four plots of MIG-II, six plots of MIG-I and eight plots of LIG situated in Tada Khandriga village, Nellore District. The petitioners have submitted their offers who emerged as the highest bidders. Before the auction was confirmed, the auction proceedings were cancelled challenging which the present Writ Petitions are filed. In the counter-affidavit filed by the Executive Engineer (Housing), A.P. Housing Board (for short “the Board”), it is inter alia stated that the petitioners who are the local residents, have participated in the auction proceedings while others were prevented from the competitive bidding, that even on previous occasions also the proposed auction of plots was dropped as the people of the locality attacked the officials of the Board and prevented them from conducting the auction. On receipt of complaints that there was collusion and forming of syndicate, the Vice-Chairman and Housing Commissioner has deputed the Estate Officer of the Board from the head office at Hyderabad as Observer and that the said Observer has filed a report before the Vice- Chairman and Housing Commissioner confirming the ring formed by the local people and preventing others from participating in the competitive bidding. The counter-affidavit has thus explained the circumstances leading to cancellation of the auction proceedings as the price reflecting the market value of the plots was not offered on account of prevention of competitive bidding by the local people. In my opinion, the highest bidder does not have indefeasible right to claim acceptance of his offer merely on account of the fact that he emerged as the highest bidder. Under Clause 9 of the bid conditions, the Vice-Chairman and Housing Commissioner of the Board is vested with the power to accept or reject any offer even without assigning reasons. However, this power needs to be exercised in a fair and proper manner and for proper reasons. In my opinion, the reasons submitted by the respondents in the counter-affidavit, justify such exercise of power by the Vice-Chairman and Housing Commissioner for cancellation of the auction proceedings on the basis of the report of the Observer confirming forming of the ring by the local people and preventing the competitive bidding. In the light of these facts, I do not find any reason to interfere with the impugned action of the respondents. For all the above mentioned reasons, these Writ Petitions are dismissed. As a sequel, interim orders dated 18-9-2008, as extended until further orders by order dated 13-10-2008, are vacated and all the pending Interlocutory Applications are disposed of as infructuous. ________________________ Justice C.V. Nagarjuna Reddy Date : 11-7-2011 AM