SC rejects plea challenging Punjab and Haryana HC order on HSIIDC

"We are conscious of the limited power of judicial review. However, when it is seen that the decision of the authority is arbitrary, irrational, and disproportionate, having regard to complaints received only with regard to few plots and yet all 130 plots being put to manual auction after abandoning the e-auction process, the intervention by the High Court with the decision of the authority cannot, in our view, be faulted," the top court said.

The Supreme Court has rejected petition challenging Punjab and Haryana High Court order which struck down the decision by the Haryana State Industrial and Infrastructure Development Corporation Limited (HSIIDC) to conduct manual auction from the stage of end of e- auction. "We are conscious of the limited power of judicial review. However, when it is seen that the decision of the authority is arbitrary, irrational, and disproportionate, having regard to complaints received only with regard to few plots and yet all 130 plots being put to manual auction after abandoning the e-auction process, the intervention by the High Court with the decision of the authority cannot, in our view, be faulted," the top court said.

The order was passed by a bench comprising of Justice Hrishikesh Roy and Justice Pankaj Mithal recently. The Supreme Court has dismissed the bunch of appeals filed by HSIIDC, state-owned agency of Haryana Government, against order 13.02.2019 of High Court of Punjab & Haryana, whereby Writ Petitions filed by several auction purchasers were allowed, whereunder decision of HSIIDC to conduct Manual auction of industrial plots from the stage of end of E-auction was struck down by Division Bench of the High Court. HSIIDC  in Supreme Court has challenged order dated 13.02.2019 of the High Court of Punjab and Haryana whereby the writ petitions filed by the respective parties were allowed whereunder the decision by the Haryana State Industrial and Infrastructure Development Corporation Limited to conduct manual auction from the stage of end of e- auction, was struck down by the Division Bench of the High Court.

"Public interest need not remain exclusively limited to ensuring maximum revenue accrual for the government. Instead, public interest includes, without limiting itself to, a fair, transparent & stable process which any and all executive action must adhere to," the court said. "When the impugned decision of the authorities is tested on the anvil of the aforenoted legal principles, it has to be said that the decision is arbitrary and also irrational. When e-auction is opted for allotment of the industrial plots, the authority could not have departed from the notified procedure. The shift to manual auction would make the earlier process of e-auction an exercise in futility," the court said.

"It would also undermine the finality of the auction process where the bidding must conclude by the stipulated time and the winner is determined by the highest last bid. It would be irrational in a process like this to permit the participants to out-bid the final bid and that too without any limitation. For valuable real estates, it is possible and likely that higher revenue will be generated in the next auction process but that cannot by itself, support the decision of the HSIIDC to abandon the e-auction process and choose another mode," the court said. In July, 2018 advertisement was issued by HSIIDC for allotment of 1762 industrial plots of various sizes in different industrial estates across State of Haryana. On 25.09.2018 E-auction was conducted for 352 of offered plots.

Despite conclusion of E-auction, HSIIDC cancelled E-auction of 130 plots on the ground of technical glitch and on 29.11.2018 public notice was issued to conduct fresh manual auction of those pots. The said cancellation of E-auction was challenged by successful bidders through various Writ petitions filed before the High Court of Punjab and Haryana, wherein on 13.02.2019, the High Court held that HSIIDC went on cherry-picking by limiting it few plots and neither any justification was offered by HSIIDC for scuttling E-auction nor showed any snag or failure in the system and decision of HSIIDC to scrap E-auction was deeply flawed and High Court allowed all Writ petitions and struck down course adopted by HSIIDC being completely arbitrary and unfair.

Some of the successful highest bidders both in E-auction and Manual auctions filed Applications for impleadment and intervention in the above mentioned Appeals represented through Sumit Gehlot and T.S. Thakran Advocates of Fidelegal Advocates and Solicitors, on the ground that their constitutional right to property have been infringed and despite being successful bidder in both the auctions have not been allotted plots by HSIIDC despite passing of more than 5 years, which have been allowed by the Supreme Court.

Advocate Sumit Gehlot, appearing, who  represented successful highest bidders in the above appeals, has welcomed the decision by saying that this is a celebrated Judgment of the Supreme Court, which will help many successful highest bidders' writs pending before the Punjab & Haryana High Court and will stop the arbitrary, and discriminatory decisions of HSIIDC of cancelling the bids of successful highest bidders in Manesar, Sohna, Sonipat, Panipat, without assigning any reason as per their whims and fancies. (ANI)

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