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2014 (4) TMI 1138 - SC - Indian LawsCancellation of tender process - discrepancies crept in the process of transfer of the land in favour of the respondent - Held that:- According to the material placed on record, the land concerned involves significant amount of public money. Therefore, its transfer in favour of the respondent attracts the greatest amount of responsibility and caution. The competent valuer had already determined the registered value of land at ₹ 4,24,72,124/-. Therefore, it was the responsibility of the concerned authority to ensure all steps which should have been undertaken to sell the land at a minimum cost of ₹ 4,24,72,124/- or above instead of its attempt to sell the same at a lower price merely on the pretext that no one would come up to purchase the land at the valuer’s price or that since the land is an encroached land, the lower price is justified cannot be accepted. The strong reliance placed by the learned senior counsel, Mr. Mehta on the report of the Joint Registrar of Co- operative Societies, is the basis for the High Court for grant of relief in favour of the respondent is wholly untenable in law and therefore, the same cannot be accepted by this Court. The High Court should have noticed the above relevant aspects of the case in passing the impugned order which would certainly affect the public interest. In the light of the legal principle laid down by this Court with regard to Public Trust Doctrine in Mahesh Chandra’s case (1992 (2) TMI 367 - SUPREME COURT) we are inclined to observe that the liquidator did not act fairly and reasonably in the best interest of the public of the State whose interest he is required to uphold. As per the material evidence put on record, the liquidator and the concerned authority did not take any step to improve the condition of the land and sell it at reasonable and standard price prevalent at the time of sale of the property in question. Hence, we hold that the tender process initiated by the appellants is not legal and is liable to be set aside. We direct the concerned authority to issue fresh notice of tender for selling the land. The notice shall be made available in government websites and other local and national newspapers so as to encourage and invite more bidders. In the meanwhile, the authority shall take all necessary steps to improve and restore the condition of the land so as to make the purchase of the land free from legal encumbrances. Since, the respondent had paid up the entire bid amount, it is entitled to refund of the entire amount. Further, since it is also proved that the amount paid by the respondent has been used to pay the arrears, the respondent is entitled to interest for the amount paid @7% p.a. from the date of payment till the date of refund.
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