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Tender

Golden Food Products India v. State of Uttar Pradesh 2026 INSC 22 - Auction - Expectation of Higher Bid

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Tender -Auction - An auction process has a sanctity attached to it and only for valid reasons that the highest bid can be discarded in an auction which is otherwise held in accordance with law. If a valid bid has been made which is above the reserve price, there should be a rationale or reason for not accepting it. Therefore, the decision to discard the highest bid must have a nexus to the rationale or the reason. Merely because the authority conducting the auction expected a higher bid than what the highest bidder had bid cannot be a reason to discard the highest bid. (Para 32) Expectation of a higher bid in a subsequent auction cannot be a reason to cancel an auction held in accordance with law. (Para 28)

Case Info



Case Name: Golden Food Products India v. State of Uttar Pradesh & Others. Neutral Citation: 2026 INSC 22.


Coram: B.V. Nagarathna, J.; R. Mahadevan, J.


Judgment Date: January 06, 2026.


Caselaws and Citations referred:

  • K. Kumara Gupta v. Sri Markendaya & Sri Omkareswara Swamy Temple, (2022) 5 SCC 710.
  • Eva Agro Feeds (P) Ltd. v. Punjab National Bank, (2023) 10 SCC 189.
  • Tata Motors Ltd. v. Brihan Mumbai Electric Supply & Transport Undertaking, (2023) 19 SCC 1.
  • Haryana Urban Development Authority v. Orchid Infrastructure Developers (P) Ltd., (2017) 4 SCC 243.
  • Rajasthan Housing Board v. G.S. Investments, (2007) 1 SCC 477.
  • State of Orissa v. Harinarayan Jaiswal, (1972) 2 SCC 36.
  • Uttar Pradesh Avas Evam Vikas Parishad v. Om Prakash Sharma, (2013) 5 SCC 182.
  • Meerut Development Authority v. Association of Management Studies, (2009) 6 SCC 171.
  • Indore Vikas Pradhikaran (IDA) v. Shri Humud Jain Samaj Trust, 2024 SCC OnLine SC 3511.
  • M.P. Power Management Co. Ltd. v. Sky Power Southeast Solar India (P) Ltd., (2023) 2 SCC 703.
  • Nagar Nigam, Meerut v. Al Faheem Meat Exports (P) Ltd., (2006) 13 SCC 382.
  • Subodh Kumar Singh Rathour v. Kolkata Metropolitan Development Authority, (2024) 15 SCC 461.

Statutes/Laws referred:

  • Article 14 of the Constitution of India.
  • Principles of natural justice (no specific statute cited; invoked as general administrative law principles).
  • Tender/auction terms of Ghaziabad Development Authority under Madhuban Bapudham Yojana (contractual tender conditions referenced, not a statute).