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Supreme Court of India 2019-09-17 allowed

MUNICIPAL COUNCIL NEEMUCH vs MAHADEO REAL ESTATE

Bench: 3 — Arun Mishra, M.R. Shah, B.R. Gavai

In Brief

A municipal council invited tenders for leasing commercial land without prior state government approval as required. After the highest bidder was selected and made a deposit, two council members objected. The Commissioner examined the tender and found inadequate publicity and possible cartel among bidders, rejecting it and directing re-tendering with wider publicity. The High Court quashed this decision. The Supreme Court held that the Commissioner and State Government correctly acted in the public interest. Judicial review is limited to examining legality, rationality, and procedure—not substituting the court's judgment. The decision to re-tender for better competition and revenue was neither arbitrary nor illegal.

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Administrative Law Judicial Review Municipal Law Public Procurement Property Disposal Constitutional Law Tender Process

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