Lawstreet Journal

Merely Being Highest Bidder In Auction Will Not Confer Any Legal Right: Supreme Court

Lawstreet Journal 5 Apr 2022 1:03am

Image courtesy: Lawstreet Journal Judiciary Merely Being Highest Bidder In Auction Will Not Confer Any Legal Right: Supreme Court

It was noted by the Court that the government authority is not bound to accept the highest bid in an auction and the acceptance of highest bid is always subject to conditions governing the public auction.

Recently, the Supreme Court reiterated that the highest bidder in an auction does not have any legal and equitable right to claim the auctioned property unless the same is approved by the State government or any other authority [Municipal Committee, Barwala, District Hissar, Haryana Through its Secretary/President v. Jai Narayan and Company and Another].

A Division Bench consisting of Justice Hemant Gupta and Justice V Ramasubramanian was hearing an appeal impugning the order of the Punjab and Haryana High Court which had affirmed claim of the title and possession of the respondent on an auctioned property of which he was the highest bidder.

The Sub-Divisional Officer auctioned the property, Hisar in which the respondent was the highest bidder and who later on claimed that he is a bonafide purchaser and was in the possession as owner of the suit land.

The Appellant-Municipal Committee had passed a resolution in order to get the sale deed of the auctioned property executed and registered, but the same was not executed.

The Appellant argued that the possession of the respondent was said to be an illegal possession because the same was not approved by the State government. It was argued by the appellant-committee the mere fact that the plaintiff was the highest bidder would not confer any equitable and legal right to… Continue Reading...

Tagged: Supreme Court of India  
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