Cancellation of Auction / Bid : Supreme Court Explains the Legal Principles
Once the auction has been held in accordance with law and there had been no fraud, collusion or any other infirmity in the holding of the auction and the earnest money has been validly deposited, there could not have been any subsequent cancellation of the bid. Returning of the earnest money deposited by the highest bidder would not legitimize an arbitrary cancellation.
[ Golden Food Products India v. State of Uttar Pradesh [2026] GCtR 23 (SC) ]