In Brief
Two companies competed for a Mumbai municipal plot auctioned in 2004. The highest bidder (Popcorn Properties) had its provisional acceptance cancelled, and MHADA (the land authority) negotiated with the second party (Jaykrishna Industries), which had not even bid. After 13 years of litigation, the permitted land use changed from commercial to residential, and property values tripled. The Supreme Court held that neither party deserved negotiated settlement; fresh public auction at market value was mandatory. The Court dismissed both appeals, finding the highest bidder had been wronged but partly to blame for delay, while the second party faced sanction—its deposit was refunded without interest, while the first received interest only until the cancellation date.
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