Supreme Court allows Chandigarh to revisit auction to maximise public property price

The Supreme Court determined whether the public authority could revisit the auction to maximize the price of public property before a binding contract was fully concluded.

Who it concerns: Appellants: Satinder Pal Singh & Ors. (successful bidder in the re-auction) and Chandigarh Administration; Respondent: M/s Bedi Hospital & Ors. (original successful bidder). The judgment is reportable (2026 INSC 1142), but the specific bench composition (judges) is not stated in the provided text.

What the court decided

• Set aside the decision of the High Court of Punjab and Haryana.
• Directed the Chandigarh Administration to conduct a fresh e-auction for Site No. 4 within a period of three months.
• Granted leave to appeal.

Also in the document

• The Court noted that the Chandigarh Administration had already returned the entire bid amount to M/s Bedi Hospital following the initial cancellation.
• The Court observed that the adjacent site (Site No. 3) fetched Rs. 18.25 Crores, while the disputed site (Site No. 4) fetched only Rs. 12.58 Crores, creating a difference of Rs. 6 Crores.
• The Court referenced the Chandigarh Estate Rules, 2007, and General Terms and Conditions, which allow the Estate Officer to accept or reject bids or cancel auctions without assigning a reason.