Supreme Court: auction cannot be cancelled just because fresh bids are lower

The case concerns two appeals by M/s Dhanlaxmi Merchandise Pvt. Ltd. and Sahakar Global Ltd. against the cancellation of an e-tender-cum-auction for sand mining groups in Madhya Pradesh, which the appellants argue was improperly cancelled because their fresh bids were lower than their earlier offers.

Who it concerns: Appellants: M/s Dhanlaxmi Merchandise Pvt. Ltd. and Sahakar Global Ltd.; Respondents: State of Madhya Pradesh & Ors.; Bench: Justice Aravind Kumar.

What the court decided

• The Court noted that the High Court of Madhya Pradesh had passed a common judgment dated 18.03.2026 in the underlying writ petitions.
• The Court observed that the Madhya Pradesh Sand (Mining, Transportation, Storage and Trading) Rules, 2019, as they stood in 2025, did not prescribe a general disqualification preventing a surrendering Mine Developer-cum-Operator (MDO) from participating in a re-tender for the same group.
• The Court noted that the Rules did not stipulate that a surrendering MDO could participate only upon offering an amount equal to or greater than its earlier bid.
• The Court recorded that the tender conditions reserved powers to the Corporation to reject the highest bid and cancel the tender process, subject to the law governing public power.

Also in the document

• The judgment is marked as 'NON-REPORTABLE'.
• The Court noted that the statutory position regarding re-participation by surrendering MDOs was subsequently altered by an amendment dated 30.01.2026.
• The Court distinguished the factual positions of the two appellants, noting that Sahakar's earlier contract involved a dispute over statutory permissions, whereas Dhanlaxmi's did not.