Law:

Section:

Punjab Local Government (Auctioning of Collection Rights) Rules, 2003 Rr. 10, 11, 12 & 13 Constitution of Pakistan (1973), Art. 185 (3) ¬ Auction of collection rights Highest bid, acceptance of Procedure ¬ Re auction Vested right Scope Parties took part in. auction proceedings and respondent was the highest bidder Nazim being dissatisfied with the auction neither accepted the bid nor the house confirmed it In re auction, the petitioner increased the bid and had become the highest bidder Respondent assailed the auction proceedings before High Court in Constitutional petition High Court allowed the petition and directed the Council to award contract in favour of respondent Validity Nazim of Local Government was not under obligation to automatically accept the highest bid and place it before the Council for its confirmation If there was scope of further enhancement of auction money, Nazim, might not accept the bid and might not place it before the House, under R.11 of Punjab Local Government (Auctioning of Collection Rights) Rules, 2003 As there was a scope of further enhancement over the bid of respondent, the concerned authorities correctly did not execute any agreement with the respondent and did not finalize the contract 'with him Neither Nazim accepted the bid of respondent nor the Council confirmed it, therefore, no agreement of awarding of contract was signed between the Council and the respondent No vested right, therefore, accrued in favour of the respondent to invoke the Constitutional jurisdiction Equity also did not lie in favour of respondent because the contract ultimately awarded in favour of the petitioner was of much higher amount as against the lesser amount offered by the respondent High Court if in doubt, in regard to the bona fide and genuineness of proceedings whereby the contract was awarded in favour of the petitioner, ought to have ordered re auction instead of directing awarding contract in favour of respondent for lesser amount Order passed by High Court had resulted in a, loss to public exchequer and superior Courts, in suitable cases had interfered to prevent such losses even in those cases where bids had been confirmed Order of…

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