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E-Auction Portal Arbitrariness: High Court Protects Highest Bidder from Illegal EMD Forfeiture and Portal Closure

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In this significant commercial matter delivered by a Division Bench comprising Hon’ble Mahesh Chandra Tripathi and Hon’ble Kunal Ravi Singh, JJ., the Allahabad High Court strongly deprecated the arbitrary closure of an e-auction portal by the Uttar Pradesh State Industrial Development Authority (UPSIDA). The petitioner, the highest (H1) bidder for an industrial plot designated for a garment industry in Ghaziabad, had deposited a substantial earnest money deposit (EMD) of over Rs. 73 Lakhs, with only a minor balance remaining. UPSIDA prematurely closed the deposit portal and subsequently forfeited the deposited EMD, alleging failure to pay by March 24, 2021. Harmonizing the conflicting timeframes within the auction catalogue—which mandated a 7-day payment window and excluded Saturdays and Sundays from computation—the court held that the deposit window actually extended until March 26, 2021. Ruling that the portal’s premature closure and the subsequent forfeiture order passed without affording an opportunity of hearing were illegal and arbitrary, the High Court allowed the writ petition, quashed the forfeiture, and directed UPSIDA to reopen the portal for the petitioner to pay the balance EMD.

  • Factual Matrix and Dispute:
    • Respondent No. 2 (UPSIDA) advertised an e-auction for industrial plot No. D-22, TDS City, Ghaziabad (measuring 5,146.40 sq. meters) reserved for non-polluting garment industries.
    • After initial rounds failed due to lack of competition, the petitioner participated in Rollover-2, was declared the highest (H1) bidder, and received an email intimation on March 20, 2021, directing payment of a balance EMD of Rs. 1,98,934.09/- (against an already deposited EMD of Rs. 73,22,040.60/-).
    • Although the email insisted on payment by March 24, 2021, the petitioner faced technical blocks when attempting to deposit on March 25 and 26 due to portal closure, despite sending multiple emails expressing readiness and citing medical exigencies.
    • UPSIDA’s Chief Executive Officer approved the forfeiture of the petitioner’s heavy EMD on April 7, 2021, without supplying a copy of the order or granting a hearing, prompting the filing of the writ petition.
  • Key Legal Issues and Findings by the Court:
    • Maintainability and Alternative Remedy: The court held that since pleadings had been exchanged and an interim order was operative since February 2021, the writ petition was fully entertainable and could not be dismissed on the ground of an unpressed arbitration clause.
    • Harmonious Construction of Auction Terms: By applying the doctrine of harmonious construction to the auction catalogue, the court noted that the date chart explicitly required excluding Saturdays and Sundays from computation. March 20 and 21, 2021, being Saturday and Sunday, had to be excluded, extending the deadline up to March 26, 2021—which aligned with the 7-day window prescribed in Post-Auction Condition 2(c)(iii).
    • Arbitrariness of Portal Closure: Consequently, shutting down the portal before March 26, 2021, was held to be illegal and arbitrary, invalidating any allegation that the petitioner failed to meet deadlines or lacked financial capacity.
    • Violation of Natural Justice: The forfeiture order dated April 7, 2021, was found to be legally infirm because administrative actions entailing civil consequences cannot be passed behind the back of a party without observing rules of natural justice.
  • Final Directions:
    • The writ petition was allowed.
    • The petitioner was granted entitlement to the remaining time period to deposit the balance EMD.
    • Upon production of a certified copy of the order along with contact details, UPSIDA was directed to issue a fresh email intimation stating the balance EMD amount, which the petitioner must deposit within two days from such intimation, failing which standard contractual consequences would ensue.

J.O. (Web) 2026 ALL 183

Chandra Fabrics Pvt. Ltd. v. State of U.P. and 2 others (D.O.J. 06.08.2026)

J.O. (Web) 2026 ALL 183 click here to view full text of judgment

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Settling Road Rage on Terms: High Court Quashes Cross-FIRs Subject to Deterrent Costs

August 9, 2026 No Comments

The petitioners in these two connected matters filed petitions under Section 528 of the BNSS (corresponding to Section 482 CrPC) seeking the quashing of cross-FIRs (No. 43/2026 and No. 24/2026) registered at Police Station Sarita Vihar for offences under Sections 115(2), 126(2), 351(2), and 3(5) of the BNS, based on an amicable compromise reached between the parties. During the proceedings, the respective parties affirmed their settlement before the court. While the High Court of Delhi agreed that continuing the prosecution would serve no fruitful purpose and accepted the settlement, it took strict note of the fact that the dispute stemmed from a dangerous road rage incident. Consequently, the court quashed both cross-FIRs and the consequential proceedings, but imposed a deterrent cost of Rs. 20,000 on each petitioner to be deposited online with www.bharatkeveer.gov.in within one week.

  • Nature of Petitions & Background:
    • The petitions sought the quashing of cross-FIRs bearing No. 43/2026 and No. 24/2026 registered at PS Sarita Vihar for minor hurt, wrongful restraint, criminal intimidation, and common intention under the BNS.
    • The quashing was petitioned on the strength of a mutual compromise executed between the private parties.
  • Submissions of Parties and State:
    • The State prosecutor offered no objection to the quashing given the settlement, but suggested that a deterrent cost be imposed due to the nature of the offense.
    • Statements of the private parties were duly recorded by the concerned Joint Registrar, and the individuals confirmed in court that they had settled all disputes and no longer wished to pursue the criminal prosecution.
  • Court’s Rationale and Final Orders:
    • The court observed that pushing the parties through a full trial would not be in the interest of justice since a settlement had been reached.
    • However, emphasizing that road rage incidents can escalate dangerously and result in fatal outcomes, the court accepted the prosecution’s view that a deterrent measure was necessary to prevent future violence.
    • Both petitions were allowed and the subject FIRs were quashed, conditional upon each petitioner depositing a cost of Rs. 20,000 with www.bharatkeveer.gov.in within a week and filing the receipts before the trial court.

2026 DHC 6424

Ankur Rawat & Anr. vs. State of NCT of Delhi & Anr. (D.O.J. 07.08.2026)

2026 DHC 6424 click here to view full text of judgment

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High Court Denies Bail to Metro Security Guard Over Heinous Murder and Abduction

August 9, 2026 No Comments

The accused/applicant, Pankaj, filed a regular bail application in connection with FIR No. 538/2021 registered at Police Station Jahangir Puri for offences punishable under Sections 302, 365, 120B, and 34 of the IPC. The prosecution alleged that the applicant, along with other metro security staff, abducted a young boy named Ashit Das on suspicion of theft, took him to a metro construction site, killed him using rods and dandas, and disposed of his body in a drainage to destroy evidence. The applicant sought bail on the grounds of long incarceration since 2021 and the examination of material witnesses. However, the High Court of Delhi dismissed the application, emphasizing the extreme gravity of the offense, the lack of legal authority for security personnel to take the law into their own hands, and the fact that crucial recovery witnesses were yet to be examined.

  • Prosecution Allegations & Investigation:
    • On 01.06.2021, a missing person report for Ashit Das was lodged at PS Jahangir Puri.
    • CCTV footage revealed that the victim was abducted by four individuals on motorcycles—identified as metro security staff—and taken behind the Majlis Park metro station construction site, where he was killed and his body thrown into a drainage.
  • Arguments of the Applicant and State:
    • The applicant argued for bail based on his incarceration since 2021, the completion of testimony by material witnesses, and the allegation that the deceased was suspected of stealing iron rods from the site.
    • The State strongly opposed the application, citing the severe gravity of the crime and pointing out that critical recovery witnesses for the weapons used in the assault are yet to be examined by the trial court.
  • Court’s Rationale and Decision:
    • The court acknowledged that long incarceration is an important factor, but noted it cannot override the gravity of the offense.
    • The court strongly observed that even if the deceased was a suspected thief, the security staff had no legal right or authority to take the law into their own hands and brutally murder him.
    • Given that crucial recovery witnesses remain to be examined and considering the brutal nature of the crime, the court held that it was not a fit case for granting bail, consequently dismissing both the bail application and the accompanying application.

2026 DHC 6404

Pankaj vs. The State Govt NCT of Delhi(D.O.J. 07.08.2026)

2026 DHC 6404 click here to view full text of judgment

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No Evidence Beyond Custodial Confession: High Court Grants Regular Bail on Grounds of Parity

August 9, 2026 No Comments

The accused/applicant, Sagar @ Golu, sought regular bail in connection with FIR No. 487/2018 registered at Police Station Bawana for offences under Sections 302, 120B, and 34 of the IPC, along with Sections 25 and 27 of the Arms Act. The case originated from the discovery of an unidentified dead body with bullet injuries near the Bawana bus stand. Initially, no eyewitnesses were found at the scene, but subsequently, the deceased’s son stated that his father was shot dead by Ritik. The applicant was later implicated and arrested based solely on the custodial confessional statement made by co-accused Ritik. Finding no other incriminating evidence connecting the applicant to the crime other than his refusal to join a Test Identification Parade (TIP)—similar to co-accused Sandeep @ Bunty who had already been granted bail—the High Court of Delhi allowed the application and granted regular bail to the petitioner.

  • Prosecution Case & Initial Investigation:
    • On 26.12.2018, police received information regarding an unidentified dead body lying in a pool of blood at the Bawana bus stand.
    • The medical examination confirmed death due to bullet injuries, leading to the registration of an FIR under Section 302 IPC and Sections 25/27 Arms Act.
    • The deceased’s son later claimed his father was shot by Ritik, and Ritik subsequently named the applicant as an accomplice while in police custody.
  • Arguments of the Parties:
    • The applicant sought parity with co-accused Sandeep @ Bunty, who was granted bail by the court earlier.
    • The State and the family of the deceased opposed the bail, highlighting the applicant’s alleged gang associations (Rajesh Bawania gang) and involvement in other cases, alongside his refusal to participate in the TIP.
    • However, the State fairly conceded that apart from the custodial confession of the co-accused Ritik, no other material evidence existed against the applicant.
  • Court’s Rationale and Decision:
    • The court noted that the deceased himself had a criminal record involving 15 heinous cases.
    • Emphasizing that there was no independent or incriminating evidence against the applicant aside from the inadmissible custodial confession of a co-accused, and recognizing the principle of parity with co-accused Sandeep @ Bunty, the court found no justification to prolong the applicant’s detention.
    • The bail application was allowed, directing the release of the accused upon furnishing a personal bond of Rs. 10,000 with one surety of the like amount.

2026 DHC 6403

Sagar @ Golu vs. The State (Govt. of NCT, Delhi) (D.O.J. 07.08.2026)

2026 DHC 6403 click here to view full text of judgment

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Environmental Accountability: Supreme Court Directions on River Pollution and Governance in Rajasthan

August 9, 2026 No Comments

In this ongoing suo motu/public interest matter addressing severe environmental degradation and riverine pollution across Rajasthan, the Supreme Court evaluated compliance reports and Special Investigation Team (SIT) findings regarding illegal industrial effluent discharges, water body contamination, and systemic regulatory failures. Expressing serious concerns over the ecological destruction of river systems like the Luni, Jojari, and Bandi, the Court issued comprehensive structural and preventive directives. These include establishing an Integrated Coordination Group and an independent River Commission/River Rejuvenation Authority headed by the Chief Secretary, mandating scientific demarcation of High Flood Lines and ecological buffer zones, accelerating criminal investigations into environmental offenses under the Bharatiya Nyaya Sanhita, 2023, and deploying a QR Code-based digital platform for confidential public reporting of environmental violations.

  • SIT Investigation and Criminal Enforcement:
    • The SIT reviewed 16 criminal cases concerning riverine pollution across Jodhpur, Pali, and Balotra, invoking graver penal provisions (including sections of the Bharatiya Nyaya Sanhita, 2023 and the Prevention of Damage to Public Property Act, 1984) where warranted.
    • Material collected prima facie reveals connivance between Common Effluent Treatment Plant (CETP) officials and member industrial units in bypassing treatment processes to discharge untreated effluents.
    • The Supreme Court advised the SIT to execute investigations with greater promptness and depth, covering the complete chain of events, financial trails, and potential public servant complicity without fear or favor.
  • State Action on Specific Environmental Concerns:
    • Regarding the pink coloration of the pond near the Jojari River at Tanawada, preliminary IIT Jodhpur studies attribute it to saline and organic contamination coupled with microbial activity; remedial measures recommended are to be implemented expeditiously.
    • Action against defaulting textile processing units in Sanganer includes closure directions under Section 33A of the Water Act, 1974, sealing drives, and environmental compensation.
    • Remediation efforts at the Khed HRTS/SEP site (including dismantling storage ponds and removing hazardous sludge) and in-situ treatment proposals for Nehda Dam (in technical collaboration with IIT Madras) are underway.
  • Institutional Mechanisms and Governance Directives:
    • Integrated Coordination Group: Ordered to be constituted within seven days to ensure inter-departmental coordination across Environment, Forest, Water Resources, Industries, and RSPCB, and to submit a Comprehensive Resolution Plan within three weeks.
    • River Commission/Rejuvenation Authority: Directed the creation of an independent, empowered River Commission/Authority under the chairmanship of the Chief Secretary to oversee integrated river basin management and catchment protection.
    • High Flood Line & Buffer Zones: Mandated a comprehensive scientific exercise to demarcate High Flood Lines and ecological buffer zones across all river systems, barring any fresh industrial, commercial, or residential permissions within these corridors until completion.
  • Industrial and Groundwater Policy Adjustments:
    • Encouraged the establishment of Captive Effluent Treatment Plants (ETPs) for industries generating 100 Kilos Litres per Day or more, alongside maximizing the capacity utilization of existing CETPs.
    • Ordered an inquiry by the Chief Secretary into land-use conversions and approvals concerning the Ambey Valley Industrial Park.
    • Imposed a strict prohibition on permitting water-intensive industries in over-exploited (“dark zone”) groundwater areas.
  • Technological Oversight and Public Reporting:
    • Directed the creation of a QR Code-based digital platform displayed prominently across public offices, industrial areas, and check posts, enabling citizens to confidentially report environmental violations, illegal groundwater extraction, or unauthorized effluent discharges.
    • The matter is listed for further consideration of the Comprehensive Resolution Plan on September 22, 2026.

2026 INSC 812

In Re: Environmental Concerns and River Pollution in the State of Rajasthan (D.O.J. 07.08.2026)

2026 INSC 812 click here to view full text of judgment

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