IN THE HIGH COURT OF JUDICATURE, ANDHRA PRADESH AT HYDERABAD (Special Original Jurisdiction) TUESDAY, THE TWENTY SIXTH DAY OF FEBRUARY TWO THOUSAND AND EIGHT PRESENT THE HON'BLE MR JUSTICE V.ESWARAIAH WRIT PETITION No.4013 of 2008 Between: 1 S. Narsa Reddy, S/o. S. Chinnaiah, R/o. H.No. 1-6, Manthani Village, Armoor Mandal, Nizamabad District. 2 K. Pruthvi Raj, S/o. Vitta Goud, R/o. H.NO. 3-9-108, Big Bazar, Armoor Mandal, Nizamabad District. 3 K. Narsa Reddy, S/o. K. Bhojanna, R/o. H.No. 1-6/1, Manthani Village, Armoor Mandal, Nizamabad District. ..... PETITIONERS AND 1 A.P. Housing Board, Rep. byits Vice Chairman and Housing Commissioner, Gruhakalapa, Nampally, Hyderabad. 2 The Executive Engineer (Housing) A.P. Housing Board, Vinayak Nagar, Nizamabad. .....RESPONDENTS Petition under Article 226 of the constitution of India praying that in the circumstances stated in the Affidavit filed herein the High Court will be pleased to issue an appropriate Writ, Order or direction more particularly one in the nature of Writ of Mandamus, declaring the action of the respondents No.2 in not receiving the balance bid in respect of Plot No.s C1, C2 and C3 situated at A.P. Housing Board Colony, Armoor, NIzamabad District and executing the registered Saled Deeds in favour fo the petitioners and further issuing another notification dt. 7-2-2008k for conduct of the auction of the same plots on 27-2-2008 as arbitrary, illegal, unconstitutional and consequently set the notification dt. 7-2-2008 in so far as Sl.No. III is concerned, by directing the respondents herein to receive the balance bid amount and to execute the registered Sale Deed in favour fo the Petitioners in respect of above said plots, and to grant such other relief or orders. Counsel for the Petitioners:MR.BOOMAGANGADHAR Counsel for the Respondents: MR.D.RANGANATHA KUMAR The Court made the following : THE HON'BLE MR JUSTICE V.ESWARAIAH WRIT PETITION No.4013 of 2008 ORDER: It is the case of the petitioners that they are the highest bidders in the auction conducted by the 1st respondent on 05-10-2007, pursuant to the auction Notification, dated 18-09-2007, for sale of Plot Nos.C1, C2 and C3 situated at A.P.Housing Board Colony, Armoor, Nizamabad District. According to the terms and conditions of the Notification, dated 18- 09-2007, the petitioners deposited 25% of the bid amount and 1% towards auction expenses. It is stated that highest bids of the petitioners have not been accepted and after waiting for about three months, the 2nd respondent communicated rejection letter, dated 11-01-2008, stating that the auction proposals were forwarded to the 1st respondent for confirmation of the plots in favour of the petitioners/bidders, but the 1st respondent has not confirmed the bids on the ground that there was poor participation in the public auction. It is further stated that during the course of auction, it was clearly mentioned that the 1st respondent is empowered to confirm or reject the plots in favour of the highest bidders and accordingly, 25% of the bid amount and 1% of the auction expenses were returned. Learned counsel appearing for the petitioners submits that as per the auction Notification, dated 18-09-2007, no such condition has been imposed to reject highest bids and, therefore, the impugned orders rejecting the highest bids are illegal and unsustainable. On the other hand, learned counsel appearing for the respondents submits that as per auction Notification, dated 18-09-2007, it is the duty of the bidders to get complete information from the 2nd respondent as mentioned in Clause-3 of the said Notification and as per the information furnished by the 2nd respondent relating to the terms and conditions of the auction, condition No.5 clearly indicates that highest bidders do not have any legal right to claim the land till the auction is confirmed by the 1st respondent and till the land is registered in their favour. Further, condition No.12 clearly indicates that the 1st respondent is the final Authority either to accept or reject any of the bids and reserve right to cancel the auction without assigning any reasons. This Court as well as the Apex Court held that the highest bidders have no vested right seeking confirmation of the highest bids until the same is confirmed. Merely because the said condition has not been mentioned in the auction notification, it cannot be said that such a condition was not there in the terms and conditions of the auction, as it was mentioned in the Notification that full information has to be obtained from the 2nd respondent. It is stated that pursuant to the impugned orders, the plots in question were re-notified for auction vide auction Notification, dated 07-02- 2008. Learned counsel appearing for the petitioners submits that the present auction notification indicates that the respondents have reserved right to accept or reject, but such a condition was not mentioned in the earlier notification. Learned counsel appearing for the respondents submits that at the time of auction, it was informed that the bidders have no right to seek confirmation and the terms and conditions were available in the 2nd respondent office and therefore, it is the duty of the petitioners to obtain full particulars from the 2nd respondent and in fact, the terms and conditions were intimated at the time of auction itself. In view of the aforesaid facts and circumstances of the case, I am of the opinion that the petitioners have no right to seek confirmation of the said auction for the reason stated in the impugned order that due to poor participation in the public auction. If that be so, it cannot be said that non- confirmation is without any reason. In view of the aforesaid facts and circumstances of the case, I am not inclined to admit the writ petition and the same is liable to be dismissed. Accordingly, the writ petition is dismissed with a liberty to participate in the fresh auction. There shall be no order as to costs. ____________ 26-02-2008 Note: Issue C.C. in three days B/o) Prv ..... REGISTRAR // TRUE COPY // SECTION OFFICER To 1.2CCs to 2.2CD copies Form-NIC-OGS/WP{SPJS}