1 hvn IN THE HIGH COURT OF JUDICATURE AT BOMBAY CIVIL APPELLATE JURISDICTION WRIT PETITION NO. 7063 OF 2009 Jagdish Mestry ... Petitioners Versus Union of India and Ors. ... Respondents Mr. S.P. Mathew with Mr. Ajay Singh and Mr. Sagar Kasar for Petitioners. Mr. R.V. Desai, Sr. Advocate with Ms. Rituja Ambekar and Mr. Rajinder Kumar and Mr. Rohit Pardeshi for Respondent Nos. 1 to 3. Mr. J.P. Cama, Sr. Counsel with Mr. J. Mitra and Mr. Bimal Bhabra for R. No. 4. CORAM : F.I. REBELLO & D.G. KARNIK, JJ. DATED : OCTOBER 15, 2009 P.C. Rule. By consent heard forthwith . It is the case of the Petitioners that they were successful bidders in an auction held. Inspite of complying with the terms, the respondents refused to release the goods in their favour and in the light of that present petition. A reply has been filed on behalf of the respondent Nos. 1, 2 and 3 by Vijay Singh, Deputy Commissioner S.I.I.B. (Import) J.N.P.T. Thereafter an additional affidavit was filed on 17.9.2009. It is pointed out that against the reserved price of Rs.6,90,000 of one container and Rs. 6 lacs. for another container, after finding 2 doubts in the matter of valuation, they did valuation and found that in respect of first container difference was Rs.28,40,867/- and in respect of the second container the difference in valuation was Rs.5,89,226/- and in these circumstances, they took steps to cancel the said auction and did not accept the Petitioners’ offer. It is true that once the auction has been held and the Petitioner was declared as successful bidder and had paid the initial amount, normally respondents are bound to comply with the terms and conditions of the bid subject to a condition that there was no fraud as the fraud would vitiate every action and or any other legal infirmity. In the instant case, from the records available before us, it is clear that the valuation done by the approved valuer is contrary to the market value and as such the respondents were within their rights to cancel the said auction and re-invite fresh bids. As we had found that there was under valuation, we had directed notice to be issued to CFS, namely M/s. Priti Logistics. They have filed an affidavit pointing out that they have gone by the valuation done by the approved valuers. In our opinion, considering the above facts, no relief can be granted to the Petitioner. However, considering the valuation now done by the Department and the report of Accurate Appraisal Services, the approved valuers, who prima facie had made the under valuation, Respondent Nos. 1 to 3 to serve notice on the said Accurate Appraisal Services and thereafter to take steps according to law including dropping them from the approved list of Valuers, if the explanation is not found 3 satisfactory. With the above observations, Petition is disposed of. The amount paid by the Petitioner be refunded to the Petitioner within 15 days from today. (D.G. KARNIK,J.) (F.I. REBELLO,J.)