SURYA KANT, J. - (1.) The following questions of law have been referred by a Division Bench of this Court vide order dated 7th February, 1992 for adjudication by a larger Bench :- "(1) Is the State to be treated differently than an individual qua its rights to enter into contract in exercise of its Executive powers ? (2) Are the provisions of the Indian Contract Act applicable to the State as in case of an individual in addition to the additional safeguards provided by Article 299 of the Constitution of India, to protect the interest of the State particularly in view of the fact that the auction, subject to confirmation of the higher authorities is nothing more than inviting offers and it is only on confirmation or acceptance of auction that an enforceable agreement comes into being ? (3) Does a person who made only an offer without it being accepted acquire any enforceable right under the law ? (4) Does the petitioner, in the facts and circumstances of the case particularly the non-acceptance of the bid which was subject to the confirmation, has any locus standi to maintain the writ petition ? (5) Is the State in exercise of its executive powers bound to pass a reasoned speaking order and is bound to follow the principles of natural justice like granting an opportunity of hearing ? (6) Does a highest bidder in an auction whose bid the authorities refuse to accept acquire any right ? (7) Does the said refusal adversely affect any right of the highest bidder ? (8) Can the contractual rights be enforced in exercise of writ jurisdiction ?"
(2.) While referring these questions, the Division Bench has doubted the correctness of an earlier Full Bench judgment of this Court in the case of Surja Ram v. The State of Haryana, 1984 PLJ 282 : (AIR 1984 P & H 282) as according to it the view taken by the Full Bench that "non-acceptance of the highest bid amounts to taking away the Right to Property", runs contrary to the law laid down by the Apex Court in the case of M/s. Bombay Salt and Chemical Industries v. L. J. Johnson, AIR 1958 SC 289.
(3.) Before adverting to the questions under reference, the facts may be noticed briefly.;