Sole auction participant can’t be declared ‘winning’ bidder: High court | India News – Times of India

BENGALURU: A sole bidder in any auction defeats the exercise’s fundamental objective of securing the best competitive price, a division bench of Karnataka HC observed in a recent judgment that ordered a home finance firm to refund earnest money to a man who was the sole bidder but did not complete the deal.
“Declaring the sole participant as the successful bidder is a completely unjustifiable position,” the division bench said, rejecting an appeal by Can Fin Homes Ltd.
Court pointed out that the aim of a public auction, as enunciated by SC is to make the sale more competitive to get the highest possible returns. “Bidding cannot take place with only one person participating needs no legal support as it is logically impossible.”