CWP No.4743 of 2009 1 IN THE HIGH COURTOF PUNJAB AND HARYANA, CHANDIGARH. CWP No. 4743 of 2009 Date of decision: 27.4.2009 Kamal Kumar ....Petitioner. vs. State of Punjab and others. ..Respondents CORAM: HON'BLE MR.JUSTICE J.S.KHEHAR. HON'BLE MR.JUSTICE UMA NATH SINGH. --- Present: Mr.Amit Jhanji, Advocate, for the petitioner. Mr.R.S.Cheema, Advocate, for respondent Nos. 2 to 4. Mr.Navkesh Singh, Advocate, for respondent Nos.5&6. -- J.S.KHEHAR,J. The Market Committee,Samana, issued an advertisement dated 6.2.2009 (Annexure P1) intimating the public at large that it desires to hold an auction for collecting grain husk from the Market Committee, Samana. Open auction for the same was scheduled for 16.2.2009. For some reasons the aforestated auction was cancelled. On 29.2.2009, a fresh advertisement in the same terms, as the original advertisement, was issued by the respondents, inter alia, for the re- auction of grain husk. At this juncture the re-auction was actually conducted on 3.3.2009. The petitioner was the highest bidder at the aforesaid auction. He made a bid for Rs.4,05000/-. For participating in the auction, the petitioner had deposited earnest money of Rs.10,000/-. He CWP No.4743 of 2009 2 deposited the balance 25% of the bid in terms of the requirements. As a consequence of the deposit of aforesaid amount, it is the contention of the learned counsel for the petitioner, that the contract between the petitioner and the respondents in furtherance of the advertisement dated 29.2.2009, came to be finalised. The grievance of the petitioner is, that by an order dated 19.3.2009, issued by the Secretary, Market Committee, Samana, the contract assigned to the petitioner was revoked, and the petitioner was informed that a fresh auction process would be undertaken by the respondents. The operative part of the aforesaid communication dated 19.3.2009, is being extracted hereunder:- “ On the above said subject it is submitted that the contract of collecting of grain husk taken by you has been cancelled by Punjab Mandi Board. Date of reallotment of contract will be fixed latter on. It is sent for information.” The reason for extracting the aforesaid letter is to show, that the respondents themselves acknowledged that the contract under reference for lifting grain husk from Market Committee, Samana, had been finally assigned to the petitioner. On the basis of the factual position, noticed hereinabove, and based on the fact that an order had been passed against the petitioner having adverse civil consequences without following the rules of natural justice, this Court issued notice of motion on 25.3.2009. The respondents have entered appearance thereafter. The case of the respondents before this Court is that the police had prevented others desirous of making bids at the auction on 3.3.2009 from participating in the auction process, and as such, CWP No.4743 of 2009 3 even though on the date when the auction was held i.e.,on 3.3.2009, the auction process had been finalised in favour of the petitioner, yet in view of the allegations levelled against the police, it was in the interest of justice that a fresh auction process should be held. In this behalf, it is also the contention of the learned counsel for the respondents that others who desired to participate in the process of auction had forwarded drafts in the name of the Market Committee, so as to suggest that they were ready and willing to make much higher bids than the bid made by the petitioner. We have considered the totality of the facts and circumstances of this case, as have been recorded hereinabove. We are of the view, that after the auction process held on 3.3.2009, came to be finalised in favour of the petitioner certain rights came to be vested in the petitioner. Those rights could not be taken away by the respondents, even for a valid justification unless the petitioner was issued a show cause notice informing him the basis of such action. The aforesaid action could not be finalised till the petitioner was afforded an opportunity of hearing to repudiate the basis for cancelling the order. In other words, the order alloting the work of collecting grain husk from the Market Committee, Samanal, to the petitioner could not have been annulled without following the rules of natural justice. Neither the written statement nor the submissions during the course of hearing demonstrate that a notice in terms depicted hereinabove, or an opportunity of hearing was afforded to the petitioner. Thus viewed, we are satisfied that the impugned order dated 19.3.2009, issued by the Market Committee, Samana, cancelling the award of contract to the petitioner is liable to be set aside. The same is accordingly set aside. Liberty is however, granted to the respondents to pass a fresh order on the same cause of action CWP No.4743 of 2009 4 in accordance with law after following the rules of natural justice. Disposed of in the aforesaid terms. ( J.S.Khehar) Judge ( Uma Nath Singh ) Judge April 27, 2009 rk