Supreme Court says a public authority may revisit an auction to maximise the price before a binding contract

25 October 2026

In Satinder Pal Singh v. Bedi Hospital, the Supreme Court of India has held that a public authority can revisit an auction to maximise the price of public property so long as no enforceable contract has been concluded. The Court said the highest bidder in a public auction does not acquire an enforceable right merely by being the highest bidder, and that under the Chandigarh Estate Rules, 2007 an agreement to sell is not by itself an enforceable contract, which comes into existence only on execution of the conveyance deed. It said a substantially lower price fetched at the auction can be a relevant consideration for not finalising the contract with the highest bidder, and that the conduct of a public authority must be informed by fairness in action and in furtherance of public purpose. The Court allowed the appeals, set aside the Punjab and Haryana High Court order that had quashed the cancellation, and directed the Chandigarh Administration to hold a fresh e-auction of Site No. 4 in Sector 33C, Chandigarh, with the process to commence and conclude within three months.