IMPORTANT POINTS
Unless tendering process is concluded, no right accrues to the bidder.
If the tendering process was found not in conformity with Finance rules, its cancellation cannot be faulted with.

JUDGMENT :

A.K. Sikri, J.

Leave granted.

2) This appeal is directed against the final judgment and order dated July 26, 2011 passed by the High Court of Judicature at Allahabad in Civil Misc. Writ Petition No. 71568 of 2010. The High Court, vide the impugned judgment, was pleased to allow the writ petition preferred by respondent No.1 herein by quashing the decision dated November 22, 2010 of the Bid Evaluation Committee (for short, 'BEC') and directed that the bid of the appellant, as accepted by it on September 08, 2010, be dealt with in accordance with law from the stage of such acceptance.

3) The dispute pertains to the construction, maintenance and operation of a slaughter house in Meerut, Uttar Pradesh. The appellants are intending to construct a slaughter house with ultra modern technology. Origin of this plan of the Government can be traced to the directions which were given by this Court vide judgment dated December 07, 2006 in the case of Nagar Nigam, Meerut v. Al Faheem Meat Exports Pvt. Ltd. & Ors., (2006) 13 SCC 382 emphasizing the need for modernising the slaughter houses according to the prescribed standards. Pursuant to the aforesaid directions of this Court, the State Government vide its G.O. dated August 06, 2008, laid down Policy Guidelines for operation of animal slaughter houses owned by urban local bodies in the State on the basis of Private Public Participation (PPP) Model. It was provided that slaughter houses owned by urban local bodies can be given on PPP Model to private persons by public auction/tender process on the condition that the private participants will have to modernise slaughter houses according to the prescribed standards. Accordingly, the State Government vide its G.O. dated September 29, 2009 constituted BEC with regard to the operation of animal slaughter houses owned by urban local bodies in the State on the basis of PPP Model in accordance with G.O. dated August 06, 2008 and June 26, 2009. The BEC was required to follow the Guidelines as laid down vide G.O. dated June 29, 2007 for selection, contracting and monitoring of Consultants and Private Developers for PPP Projects in the State. As per the Guidelines, the selection of the Developer was to be made through two stage bidding process, i.e.: Stage I – Shortlisting of Developer through EOIs in the form of Request for Qualification (RFQs) Stage II – Selection of Developer from shortlisted, developer on the basis of Request for Proposal (RFPs) submitted by them containing two stage bids i.e. Technical and financial bids.

4) The Guidelines provide for a PPP. The BEC was empowered to examine all aspects and stages of developer selection, i.e. issuance of EOI, evaluation of EOI, shortlisting of Developers, deciding terms of reference, issuance of Request for Proposal (RFP), evaluation of technical and financial proposals, negotiations and final selection of Developer. After the requisite evaluations, the BEC was to recommend the name of a Bidder/Developer to the Competent Authority for award of contract and the final approval of the Developer for the PPP project was to be granted by the Competent Authority. As per the Guidelines, the Competent Authority was the Cabinet of Ministers of the Government of Uttar Pradesh.

5) The Nagar Nigam, Meerut, published a Notice dated May 26, 2010 inviting tenders of Request for Qualification (RFQ) for establishment of a new modern slaughter house at village Ghosipur, Meerut on Build-Operate and Transfer (BOT) basis. In the Notice, the estimated cost of the project was shown to be Rs.101.76 crores and the project was to be implemented within 24 months. Pursuant to the aforesaid Notice, financial and technical bids were received from three firms and the consultant had found all the three bids to be deficient and recommended for invitation of fresh bids. Accordingly, the Nagar Nigam again published a Notice dated June 29, 2010 inviting tenders of RFQ. Pursuant to the aforesaid Notice, five financial and technic