Rajasthan Housing Board And Another vs G.S. Investments And Another

3. The appellant No. 1 Rajasthan Housing Board published an auction notice on 3.2.2002 for auction of 50 commercial plots in the Mansarovar Scheme, which was followed by another auction notice dated 19.2.2002. The auction was conducted on 20.2.2002 in which M/s. G.S. Investments (respondent No. 1) made the highest bid @ Rs.5750/- per square meter. A news item was published in some newspaper that large scale bungling had been done in the auction due to which the price fetched for the plots in question was much below the market rate. The State Government issued a direction on 22.2.2002 summoning the records and staying all further proceeding relating to auction of the plots. Thereafter, an order was passed by the State Government on 20.3.2002 directing that the officers of the Rajasthan Housing Board, who were responsible for conducting the auction, be placed under suspension and in future no auction shall be conducted through the agency of Satish Auction House which had conducted the auction on 20.2.2002 or through any other auction agency. After a detailed consideration of the matter, including the report of the Financial Commissioner which showed that in the past plots in the said area had fetched a price of Rs.10,000/- per square meter, the State Government passed an order on 3.4.2002 disapproving the auction held on 20.2.2002 and a further direction was issued for holding a fresh auction. On 23.4.2002 the appellant No. 1 sent a communication to respondent No. 1 that the auction held on 20.2.2002 had been cancelled and it may produce the original receipt regarding deposit of the amount so that the same may be refunded to it. Feeling aggrieved by the aforesaid communication, the respondent No. 1 M/s. G.S. Investments filed a writ petition in the High Court which was admitted by a learned single Judge on 29.5.2002 and an interim order was passed that in the meanwhile no order prejudicial to the writ petitioner shall be passed. The writ petition was contested by the appellant on various grounds by filing a counter affidavit. The learned single Judge by a short order dated 4.8.2004 disposed of the writ petition and the relevant portion of the order is being reproduced below:

The appellant preferred a special appeal against the order of the learned single Judge before the Division Bench of the High Court which dismissed the same at the admission stage on 23.4.2004 observing as under: -

5. We have given our careful consideration to the submissions made by the learned counsel for the parties. As mentioned earlier, after getting report of the bungling done in the auction, the State Government had passed an order on 22.2.2002 staying all further proceedings in connection with the auction. On 20.3.2002 disciplinary proceedings had been initiated against the concerned officers and they were placed under suspension and a further direction was issued that in future no auction shall be held through any agency including Satish Auction House, which had conducted the auction in question. A specific order was passed on 3.4.2002 disapproving the auction held on 20.2.2002 and it was mentioned in the order that the same was being done in exercise of powers conferred by Section 60 of the Rajasthan Housing Board Act. Section 60 of the said Act reads as under: -

10. In the result the appeal is allowed with costs. The order dated 4.8.2004 passed by the learned single Judge and the order dated 23.9.2004 passed by the Division Bench of the High Court are set aside and the writ petition filed by the respondent is dismissed. The order dated 4.4.2005 passed by the learned single Judge in contempt proceedings is also set aside and the contempt petition filed by the respondent is dismissed. The money deposited by the respondent No. 1 shall be refunded to it forthwith.