State Of Punjab vs M/S. Bandeep Singh & Ors

The Supreme Court held that the decision of the Punjab State Leather Development Corporation Ltd. to reject the highest bids for properties without providing reasons was arbitrary and violated principles of natural justice. The Court emphasized that administrative decisions must be transparent and reasoned, referencing the precedent in Mohinder Singh Gill v. The Chief Election Commissioner, which mandates that the validity of an order must be judged by the reasons stated at the time of the decision. The Court quashed the re-auction decision and directed acceptance of the original bids, thereby upholding the rights of the successful bidders.