In Brief
The Supreme Court dismissed a suit by Orchid Infrastructure Developers seeking declaration that rejection of its highest auction bid (Rs. 111.75 crores) was illegal and seeking mandatory injunction for issuance of an allotment letter. The Court held that: (1) no vested right accrues to a bidder until formal acceptance and allotment letter issuance, so suit for mandatory injunction was not maintainable absent a concluded contract; (2) the Administrator had competent authority to reject the bid under delegation of powers and auction terms; (3) the rejection was not arbitrary—it was based on Auction Committee reports considering comparative market prices; and (4) the plaintiff should have paid ad valorem court fee on the bid amount. The appeal was allowed, the High Court's order was set aside, and the trial court's dismissal was restored.
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