IN THE HIGH COURT OF JUDICATURE AT BOMBAY NAGPUR BENCH, NAGPUR
A.S. CHANDURKAR, VRUSHALI V. JOSHI, JJ.
S.D.P.L. And C.C.C.P.L., A Joint Venture, Yavatmal – Appellant
Versus
Public Works Department, Mantralaya, Mumbai & Others – Respondent
Writ Petition No. 6356 of 2019
Decided on : 25-01-2023
Constitution of India, 1950 – Civil Application – Issuance of work order – Cancelling tender process – Held, Petitioner while submitting its financial bid in response to the first tender notice had quoted rate for said work while the respondent no.5 has been issued work order after quoting rate – Thus in effect there is a difference of almost Rupees Ten Crores in rate that was quoted by petitioner initially and rate at which work order has been issued to respondent no.5 – Court do not find it expedient in larger public interest to interfere with grant of work order to respondent no.5 especially when more than 75% of said work has been completed – In absence of any arbitrariness or favouritism being brought on record, Court do not find any reason to interfere in writ jurisdiction – Writ petition disposed of.
JUDGMENT :
The challenge raised in this writ petition is to the action on the part of the respondent nos.1 to 4 in cancelling Tender No. 82861 pursuant to the tender notice issued on 10.02.2019. Further prayer has been made by the petitioner seeking issuance of work order in its favour pursuant to the petitioner being the lowest bidder for the work in question.
2. The petitioner, a registered contractor firm which is functioning as a joint venture participated in the notice inviting tender dated 05.02.2019 whereby bids were invited for the work of improvement of State Highway No.315 from Kilometer 39/500 to 69/000 at Taluka Jhari, District Yavatmal. The last date for submission of bids was 20.02.2019 and the bids were to be opened on 25.02.2019. The technical bids of two bidders including the petitioner were found to be competent and thereafter the financial bids came to be opened. The financial bid submitted by the petitioner was found to be the lowest. Based on this, the respondent no.4 by communication dated 01.03.2019 sought approval from the respondent no.3 for issuance of the work order. It is the case of the petitioner that some complaints came to be made in the matter of the aforesaid tender notice and hence communication dated 14.05.2019 came to be issued to the respondent no.2 to look into the matter. The Chief Engineer on 01.06.2019 submitted his report to the Principal Secretary, Public Works Department, Mumbai that there was no substance in the complaints made by the complainant and that the tender process had been carried out in accordance with the tender notice. Thereafter the Chief Engineer on 03.08.2019 issued an order proposing acceptance of the bid of the petitioner. However on 03.09.2019 the petitioner was informed by an E-mail that Tender No.82861 had been cancelled by the Department. According to the petitioner there was a direction to re-tender the work in question. Being aggrieved the petitioner has challenged the aforesaid decision of the respondent no.1 cancelling the tender process.
The petitioner has also filed Civil Application (W) No. 2809 of 2019 praying therein that the Principal Secretary, Public Works Department, Mumbai be called upon to file a specific affidavit so as to bring on record the reasons for cancelling the tender in question since no substantial reason was indicated for cancelling the same and for issuing a fresh work order.
In the affidavit filed on behalf of the respondent nos.1 to 4 it was asserted that the tender notice in question was published in the concerned newspaper on 14.02.2019 and the last date for submission of online bids was 19.02.2019. In effect, publicity of about four to five days was given which was in violation of the instructions issued by the State Government vide its letter dated 10.01.2019. These directions were binding in the entire State and hence since there was breach of these directions a communication dated 28.08.2019 was issued by the State Government cancelling the work in question. Thereafter another E-Tender No.89698 dated 04.09.2019 for the same work came to be issued. It was denied that the cancellation of the tender work was arbitrary thus warranting interference by this Court. In that backdrop the communication dated 28.08.2019 came to be issued.
3. Pursuant to the fresh tender notice the bid of another bidder came to be accepted. Since the fresh tender process was permitted to be conducted subject to the outcome of the present writ petition by the order dated 17.09.2019 leave was granted to the petitioner to implead the successful bidder. Thereafter the respondent no.5 who is the said successful bidder has been impleaded. According to the said respondent as per Government Resolution dated 27.09.2018 it was necessary to give publicity of atleast eight days when the tender notice pertained to work exceeding Rupees Thirty Crores. Since the same was not so given when the first tender notice came to be issued, the tender process was cancelled. In the s
The decision to cancel a tender process based solely on the lowest bid and vague complaints against the bidder must be justified and evaluated in accordance with the law.
A tender inviting authority possesses the discretionary power to cancel a tender process prior to award, provided the decision is bona fide, not arbitrary, and is made in the interest of quality exec....
The cancellation of a tender by a public authority does not create a vested right, and decisions based on tender conditions are largely within the authority's discretion.
The tender process could not be recalled and cancelled for violation of a condition which was not part of NIT, and the subsequent recalling and cancellation of the tender process would prejudice the ....
The procuring entity has the discretion to cancel tenders and re-invite bids without prior communication of reasons; judicial review is limited to assessing arbitrariness or statutory violations in p....
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