Bench of Justice B.V. Nagarathna and Justice R. Mahadevan observed that “expectation of a higher bid in a subsequent auction cannot be a reason to cancel an auction held

Justice B.V. Nagarathna, Justice R. Mahadevan, Supreme Court The Supreme Court has held that an auction conducted in accordance with law cannot be cancelled merely on the ground that the auctioning authority expects to secure a higher bid in a subsequent auction, particularly when the highest bid received is above the reserve price, and there is no allegation of fraud, collusion or illegality in the auction process. The Court was hearing civil appeals arising out of judgments passed by the Allahabad High Court dismissing writ petitions filed by the appellant challenging the cancellation of its highest bid by the Ghaziabad Development Authority in respect of an industrial plot auction. A Bench of Justice B.V. Nagarathna and Justice R. Mahadevan observed that “expectation of a higher bid in a subsequent auction cannot be a reason to cancel an auction held in accordance with law,” and held that such cancellation on irrelevant considerations is arbitrary and unsustainable. Also Read - Exoneration In