ORDER R. A. Sharma, J.
1. A notice dated February 6, 1995, was published by Zila Parishad, Mau, notifying February 14, 1995 as date for holding auction for granting licence for collection of hides and bones of dead animals in Mohammadabad Gohana Block of district Mau. In the auction held on 14th February, 1995, the bid of the petitioner for a sum of Rs. 6,500/- being the highest was provisionally accepted and the petitioner in pursuance thereof deposited the bid money. However, the Chairman of the Zila Parishad did not approve it. Being aggrieved the petitioner has filed this writ petition.
2. Respondents Nos. 1, 2 and 3 have put in appearance through Sri S. P. Singh, Advocate, and have filed their counter-affidavits, petitioner has filed rejoinder-affidavit in reply thereto. The respondents Nos. 4 and 5, who are represented by learned Standing Counsel, have not filed any counter-affidavit. We have heard learned counsel for the parties.
3. In connection with grant of Theka for collection of hides and bones of dead animals the Government has issued orders from time to time, according to which contract has to be given to those registered Co-operative Societies which have been formed by the persons of traditional occupation and if there is no such Society in any Block or area the settlement has to be made by means of public auction, in which only persons of traditional occupation can take part. From perusal of the counter-affidavit it is clear that on 6-2-1995, when notice for holding the auction on 14-2-1995 was published and on 14-2-1995, when the auction was held, there was no registered Cooperative Society. The authorities were thus fully justified to settle the right by public auction.
4. Learned counsel for respondents has, however, made two submissions in this connection, viz. (i) provisional acceptance of bid at auction does not confer any right on the bidder unless it is finally approved by the Chairman, who has absolute right to accept or not to accept it; and (ii) in view of Government Order of March, 1995 (An-nexure-4 to the counter-affidavit) suggesting for granting licence for the year 1995-96 --between 25th and 31st March, 1995, it was not possible to accept the bid of the petitioner finally. These contentions cannot be accepted.
5. The validity of the auction has to be considered with reference to the date of notice of auction and/or the date on which auction was held, depending on the terms of notice. In the instant case there was no registered Society up to the date of auction. In para 6 of the counter-affidavit only this much has been stated that a registered Co-operative Society is now formed for carrying on the trade of collecting hides and bones. But what is the date of its registration has not been disclosed. It has, however, not been disputed that till the date of acution there was no registered Society in the area. Therefore, holding of auction was fully justified.
6. When order of an authority refusing to accept the bid is challenged, before the Court, it is its duty to disclose the reasons for not accepting the bid. In the instant case, although no specific reason for declining the petitioner's bid has been given in counter-affidavit, but from perusal of its paragraphs 5, 6 and 7 it appears that the petitioner's bid was refused on the ground of Government Order referred to hereinbefore.
7. Provisional acceptance of the bid at the fall of the hammer does not normally confer a right on the bidder unless it is accepted by the appropriate authority. Although appropriate authority has the power to accept or not to accept the bid, but it cannot refuse to accept it on extraneous and other unsustainable grounds. It is true that the concerned authority can refuse to accept the bid if the amount offered is not adequate, but it cannot reject it on the ground that some other person, who did not participate in the auction or was not eligible at that time is ready to take the contract. The rights of the parties are to be judged with reference to the date of auction unless the terms of the notice of auction provide otherwise.
8. Government Order (Annexure-4 to the counter-affidavit) has required fixing licencing for 1995-96, from 25th to 31st March, 1995, by which time registration of new Cooperative Society to be completed. This order is not retrospective in operation. By it the auction, already held, has not been cancelled. The Chairman, as such, cannot reject the bid of the petitioner on the basis of this order.
9. For there a sons given above, this writ petition is allowed. The respondent No. 1 is directed to consider afresh the question of accepting the bid of the petitioner offered at the auction held on 14-2-95 in accordance with law within two weeks from the date of presentation of certified copy of this order before him.
10. Petition allowed.