Back
IN THE HIGH COURT OF JUDICATURE AT PATNA
Rajeev Ranjan Prasad, J.
M/s Cobra Industrial Security Forces (i) Ltd - Appellant
Versus
State of Bihar - Respondent
Civil Writ Jurisdiction Case No. 6237 of 2020
Decided On : 20-10-2020
Tender Process - Cancellation of Tender - Fresh Tender - Malafide - Public Interest - Judicial Review - Scope - Wednesbury Unreasonableness - Blacklisting of Petitioner - Suppression of Material Facts - Cost Imposed.
Fact of the Case:
Petitioner, a security agency, challenged the cancellation of a tender process for security services by the Bihar School Examination Board (BSEB) and the issuance of fresh tenders. The petitioner claimed that it was the lowest bidder in the original tender and that the cancellation and fresh tender process were malafide and arbitrary. The BSEB defended its actions, stating that the original tender was canceled due to a mistake in the tender notice and that the fresh tender process was conducted fairly and in accordance with the law.
Finding of the Court:
The court found that the petitioner had failed to demonstrate that the cancellation of the original tender and the issuance of fresh tenders were malafide or arbitrary. The court noted that the BSEB had a legitimate reason for canceling the original tender due to the mistake in the tender notice. The court also found that the fresh tender process was conducted fairly and in accordance with the law. The court further found that the petitioner had suppressed material facts in its writ petition by failing to disclose that it had been blacklisted by the BSEB prior to the issuance of the fresh tenders. The court held that the petitioner's suppression of material facts was a serious matter and that it warranted the imposition of costs against the petitioner.
Issues: 1. Whether the cancellation of the original tender and the issuance of fresh tenders were malafide or arbitrary? 2. Whether the fresh tender process was conducted fairly and in accordance with the law? 3. Whether the petitioner had suppressed material facts in its writ petition? 4. Whether the petitioner's suppression of material facts warranted the imposition of costs against the petitioner?
Ratio Decidendi: 1. The court held that the petitioner had failed to demonstrate that the cancellation of the original tender and the issuance of fresh tenders were malafide or arbitrary. The court noted that the BSEB had a legitimate reason for canceling the original tender due to the mistake in the tender notice. The court also found that the fresh tender process was conducted fairly and in accordance with the law. 2. The court held that the fresh tender process was conducted fairly and in accordance with the law. The court noted that the BSEB had followed the proper procedures for issuing the fresh tenders and that the petitioner had been given a fair opportunity to participate in the tender process. 3. The court held that the petitioner had suppressed material facts in its writ petition by failing to disclose that it had been blacklisted by the BSEB prior to the issuance of the fresh tenders. The court found that the petitioner's suppression of material facts was a serious matter and that it warranted the imposition of costs against the petitioner. 4. The court held that the petitioner's suppression of material facts warranted the imposition of costs against the petitioner. The court found that the petitioner's suppression of material facts had misled the court and that it had wasted the court's time and resources.
Final Decision: The court dismissed the petitioner's writ petition and imposed a cost of Rs.25,000/- against the petitioner for suppressing material facts in its writ petition.
JUDGMENT
Rajeev Ranjan Prasad, J. - Petitioner in the present case has moved this court for the reliefs mentioned in paragraph 1 of the writ application which reads as under:
"a. For quashing the entire tender process with respect to the notice Inviting Tender No.PR-115/2020 and the Notice Inviting Tender No.PR116/2020 (Annexure-6 Series) floated by the Respondent No.2 i.e. Bihar School Examination Board, on 29.04.2020, inviting tender for "providing Security Services to Bihar School Examination Board, Patna" and for "providing Housekeeping Services to Bihar School Examination Board, Patna", respectively as both the tenders has been floated by the Respondent no.2 without cancelling the earlier tenders notice No.PR490/2019 (Annexure-1), which was floated in the month of December 2019 for similar work i.e. "for Providing Housekeeping, security personnel and potable water supply with modern equipment and best quality manpower for building and campus at the office of Bihar State Examination Board (hereinafter referred as "BSEB") and 10 regional office of BSEB, wherein the petitioner was declared as L1, but in spite of several request made by the petitioner, the agreement was not executed nor the tender process was cancelled nor any action was taken by the respondent no.2.
Further, even without cancelling the aforesaid Tender notice No. PR 490/2019 (Annexure-1), again similar tenders being Tender No. PR-104/2020 (Annexure-4) for providing Housekeeping Services and Tender No.105/2020 (Annexure-5) for providing Security Services were floated by the Respondent BSEB on 16.03.2020 in which the petitioner also participated, but without cancelling the same, the Respondent BSEB once again on 29.04.2020 issued fresh Tenders i.e. Notice Inviting Tender No.PR-115/2020 and the Notice Inviting Tender No.PR116/2020 (Annexure-6 series) and thereafter in a quite illegal, arbitrary and malafide manner cancelled the aforesaid Tender Notice No.PR 490/2019 (Annexure-1) issued in the month of December, 2019, Tender No.PR-104/2020 (Annexure-4) and Tender No.105/2020 (Annexure-5) floated on 19.03.2020 were cancelled on 29.05.2020 (Annexure-7 series) i.e. after floating of tender dated 29.04.2020.
b. For a direction upon the concerned Respondent to immediately quash the intimation given by the respondent no.2 through e-mail on 29.05.2020 (Annexure-7 series) whereby and where under it was informed that the Tender Notice No.PR 490/2019 (Annexure-1) issued in the month of December, 2019 Tender No. PR-104/2020 (Annexure-4) and Tender No.105/2020 (Annexure-5) floated on 16.03.2020 has been cancelled, even without giving any opportunity of hearing to the petitioner.
c. For any other relief/reliefs for which the petitioner may be deemed fit and proper by this Hon''ble Court under the facts and circumstances of this case."
Case of the petitioner
2. It is the case of the petitioner that being one of the premier security agency engaged in providing security service and other allied services to various organizations of the central government, state government, public sector undertakings and private organizations in various States of the country, it is also engaged in providing security services to the respondent Bihar School Examination Board (hereinafter referred to as the "BSEB"). The petitioner was able to get the tender for security services floated by the BSEB in the year 2017, it was for a period of three years and as the said period was going to expire the BSEB floated a similar e-tender on 21.12.2019.
3. The e-tender bearing no. PR-490/2019 (Annexure ''1'') was floated inviting tender for providing house keeping, security personnel and portable water supply with modern equipment and best quality manpower for the building and in nine regional offices of the BSEB situated at Patna, Gaya, Bhagalpur, Muzaffarpur, Purnea, Kosi, Saran, Darbhanga and Munger.
4. It is not in dispute that petitioner and two other tenderers qualified at the technical bid stage and ther
An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers
Please visit our Training & Support
Center or Contact Us for assistance
Scan Me!
India’s Legal research and Law Firm App, Download now!
For Daily Legal Updates, Join us on :
Back to top
