KALU RAM AHUJA vs DELHI DEVELOPMENT AUTHORITY

The Supreme Court held that the rejection of the appellants' highest bid by the Vice-Chairman of the D.D.A. was arbitrary and lacked rational justification, violating principles of administrative fairness. The Court quashed the decision of the Vice-Chairman and directed the D.D.A. to complete the formalities of land transfer upon the appellants' payment of the bid amount with interest. The appeals were allowed, and the High Court's orders were set aside, establishing that decisions must be made in public interest and with tangible reasons.