- (1.) M.Katju, V.N.Singh-The petitioner claims that it has bid in an auction for ferry rights and deposited some money but the Commissioner did not approve of the auction. His grievance is that he was not given opportunity of hearing by the Commissioner.
(2.) IT is well-known that there are two kinds of contracts given by public auction. The first is where the auction is not subject to approval by some authority. In such auctions, the contract is complete at the time of the auction on the fall of the hammer. The other kind of auction is where the auction is subject to approval by some authority. In such cases, the contract is not complete until approval is granted by the authority concerned. Under Section 8 of the Northern India Ferries Act, 1978, approval of the Commissioner is necessary. Since, admittedly, no approval was granted by the Commissioner, no auction has been settled in favour of the petitioner and hence, no right has accrued in its favour. Hence, there is no question of giving opportunity of hearing, because opportunity of hearing has to be given only in those cases where some right has accrued, and thereafter, it is sought to be cancelled. Since in this case no right has accrued in favour of the petitioner, hence there is no need to give opportunity of hearing. There is no force in the writ petition. It is, accordingly, dismissed. However, we direct that the amount deposited by the petitioner in connection with the auction in question should be refunded to it forthwith, and it can bid in the public auction along with others, if it is eligible.;