VidhiSangh

Supreme Court of India · 17/09/2019

MUNICIPAL COUNCIL NEEMUCH versus MAHADEO REAL ESTATE AND ORS.

[2019] 12 S.C.R. 532 · 2019 INSC 1040

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Summary

A municipal land bidder challenged rejection of a lease proposal and an order for fresh tenders with wider publicity. The Court held that the High Court had overlooked subsequent State correspondence authorising the Commissioner to reconsider and reject the proposal. Concerns about inadequate competition and possible collusion supplied a rational public-interest basis for re-tendering. The bidder’s writ relief was set aside, with refund and interest directed.

Issues

  1. Whether the Commissioner was authorised to reject the municipal lease proposal.
  2. Whether directing a fresh tender process justified interference in judicial review.

Provisions considered

Held

Result

The appeals were allowed without costs. The High Court’s writ and review orders were set aside and the bidder’s writ petition dismissed. The Municipal Council was directed forthwith to refund the deposited amount with interest at six per cent per annum.

Judgment PDF: Supreme Court of India, [2019] 12 S.C.R. 532.