LAHORE: The Lahore High Court (LHC) has held that mere declaration of a participant as the highest bidder does not confer any vested or enforceable right on a public property unless approved by a competent authority.
The court passed this order in a petition of Rai Sher Muhammad challenging the decision of a cabinet committee on privatisation directing for fresh auction of a public property in Sargodha despite the petitioner was the highest bidder.
In the absence of such approval, any financial commitment or preparatory arrangement allegedly made by the petitioner remains contingent upon completion of the statutory process and cannot override the discretion vested in the government with respect to disposal of public property, the court added.
The court dismissed the petition and observed, if the petitioner claims to have made any investment or incurred expenditure in anticipation of confirmation of the auction, the same was undertaken at his own cost and risk and cannot create any vested or enforceable right in his favour.
It finds no illegality or jurisdictional defect in the impugned order or in the actions of the respondents warranting interference in exercise of jurisdiction under Article 199 of the Constitution, the court added.
The petitioner has also failed to demonstrate any illegality, malafide, jurisdictional defect or violation of law in the actions of the respondents, the court added.
The court said the constitutional jurisdiction of this court cannot be invoked to compel the government to confirm an auction where the process admittedly remained subject to approval and had not culminated into a final and binding transaction.
The court said the statutory framework under Punjab Privatisation Board (Process/ Procedure for Auction of Government Properties) Regulations, 2013, governing the auction proceedings clearly demonstrates that the declaration of a participant as highest bidder does not confer any enforceable right unless the auction is approved by the competent authority.
The court said, under Rule 9(1.b) the auction proceedings conducted by the District Privatisation Committee are required to be placed before the Punjab Privatization Board for consideration and decision.
The rule authorises the privatisation board to reject or disapprove any bid before transfer of the property in favour of the bidder, the court added.
The regulatory framework, therefore, clearly shows that the auction process does not attain finality merely upon conclusion of the bidding proceedings, the court concluded.
Copyright Business Recorder, 2026
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