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2022 Supreme(Pat) 126

IN THE HIGH COURT OF JUDICATURE AT PATNA
Sanjay Karol, S. Kumar, JJ.
The Bihar Offset Printers Association through its General Secretary namely Lok Prakash Singh, son of Late Atma Nand Singh - Appellant
Versus
The Union of India through its Secretary, Ministry of Education, Government of India, New Delhi - Respondent
Civil Writ Jurisdiction Case No.762 of 2022
Decided On : 25-03-2022

Advocates:
Advocate Appeared:
For the Appellant :Mr. P.K. Shahi, Sr. Advocate, Mr. Vikas Kumar, Mr. Mukesh Kumar, Advocate
For the Respondent:Dr. Krishna Nandan Singh (ASG), Mr. Tuhin Shankar, CGC, Ms. Prakritita Sharma, A.C. to ASG, Mr. Sriram Krishna, Advocate, Mr. Amarjeet, A.C. to ASG, Mr. Devansh S. Singh, A.C. to ASG, Mr. Ajay Kumar Rastogi, Senior Advocate AAG-10, Mr. Madhaw Prasad Yadav, GP-23, Mr. Arvind Kumar, AC to GP-23, Mr. Anjani Kumar, Senior Advocate (AAG-4), Mr. Alok Kumar Rahi, Advocate, Mr. Girijish Kumar, Advocate, Mr. Mukul Rohatgi, Sr. Advocate, Mr. Pawanjit Singh Bindra, Sr. Advocate, Mr. Rohitabh Das, Advocate, Mr. Vinayak Marwah, Advocate

Headnote:

Government Contract – Tender – Mere submission to a tender confers no right upon the party, save and except for its valid consideration in terms thereof – Mere deposit of bid amount would also not confer any right upon tenderer – Past record of tenderer; quality of goods or services offered would have been bearing on overall assessment in assigning suitability of successful bidder – There is no concluded contract till the time the bid is accepted – Also bid be not necessarily accepted, be it even that of highest bidder – No bidder is entitled as a matter of right to insist for further negotiation unless terms so provide – Bidder has got no right, save and except for a fair treatment in matter of evaluation of competent bids offered by interested parties – Mere deposit of money in terms of bid also does not confer any right on bidder – Tenderer has no right for negotiation after submission of bid – State has a right to accept or reject even highest or lowest bid – There exists no obligation on part of tender issuing authority to accept any of tenders or even lowest bidder – Such a decision has to be based on existence of good and sufficient reasons – On acceptance of bid, contract between parties becomes concluded and an agreement binding parties disentitling them to wriggle out of same – In absence of power of general relaxation, essential conditions of a tender must be adhered to. (Para 54.IX)

Government Contract – Tender – In complex economic matters, every decision is necessarily empiric and it is based on experimentation and its validity cannot be tested o any rigid 'a priori' considerations or on application of any strait-jacket formula – Court must while adjudicating constitutional validity of an executive decision relating to economic matters grant a certain measure of freedom or 'play in the joints' to executive – Same is required to be given unless such decision is patently, arbitrary, discriminatory and malafide – Unless decision is ex-facie contrary to a Statute or against public policy, Constitutional Court would exercise judicial restraint – Simply because tender is going to be benefitted commercially is not a ground to interfere – Unless overwhelming public interest requires it so – Intervention otherwise may lead to vast amounts unbudgeted expenditure – Government is a guardian of finances of State and expected to protect financial interest of State – Scope of judicial review is not reviewing decision, but decision making process itself – Judicial review is not an appeal, and under garb of such review, it must not be used as an instrumental for abusing power or usurping the same – There is presumption of requirement of reasonableness being satisfied in a Governmental action and it being in public interest – Reasonableness cannot be a mere ipse dixit – Private Interest would not prevail over public interest – There is need to maintain transparency in Governmental contracts. (Para 54.X)

(2022) 1 SCC 165; (2009) 6 SCC 171; (2015) 13 SCC 233; (2019) 14 SCC 81; (2016) 16 SCC 818; (2018) 11 SCC 508; (1994) 6 SCC 651; 2020 SCC OnLine SC 847; (2020) 16 SCC 489 ; (2007) 14 SCC 517; 2020 SCC OnLine SC 1035 – Referred.

(2012) 8 SCC 216; (2012) 10 SCC 1; 2022 SCC Online SC 111; (2016) 15 SCC 272; (1975) 1 SCC 737]; (2020) 3 SCC 525]; (2010) 8 SCC 263 – Relied.

JUDGMENT :

Sanjay Karol, J.

Following issues arise for consideration before this Court in this lis:

    (i) Whether the process adopted or decision made of procuring educational material through a centralized process and short-listing the lowest tenderer is so arbitrary and irrational that the Court can say: the decision is such that no responsible authority acting reasonably and following relevant law could have reached?

(ii) Whether by undertaking such a process public interest is affected?

(iii) Whether the acts of Additional Chief Secretary, Department of Education, Govt. of Bihar, as also the Director, Primary Education, Govt. of Bihar-cum-Nodal Officer, FLN, in finalizing the policy for implementing the Foundational Literacy and Numeracy (FL&N) scheme by calling a tender can be said to be illegal?

(iv) Are the conditions laid down in the Request for Proposal (RFP) tailor-made to either oust the petitioners or favour others? If so, can such an action be said to be mala fide?

(v) Can the terms and conditions mentioned in the tender be deemed manifestly unreasonable and arbitrary?

(vi) Whether procurement of educational materials, such as textbooks etc., to be developed and published is the procurement of goods or services under the Bihar Finance (Amendment) Rules, 2005?

(vii) Whether successful bidders failed to fulfill the essential terms and conditions of the tender?

(viii) Whether Respondent's actions of short-listing the tenderer can be said to be an act of malice and favouritism, thereby vitiating such process in the direction of award of the tender?

(ix) Whether the act of Respondent No.11, namely Telecommunications Consultants India Ltd. (TCIL) in simultaneously issuing a tender for procuring components of the tender in question can be termed a consortium/joint venture in the commercial parlance?

National Perspective; Need For Imparting Education To The Children At The Basic Level

2. Highlighting the need for providing nutritious food and digitizing the process of education, vis-à-vis the children in Bihar, during the time of current Pandemic Covid-19, this Court vide judgment dated 18 September 2020 in CWJC No.7124 of 2020, titled as Court on its own motion on the basis of news item titled “School Shut, No Mid-Day Meal, Children In Bihar Village Back To Work Selling Scrap” versus The State of Bihar & Ors. had, inter alia, issued the following directions:-

    “42. In light of the above, we direct for the State to consider, enforcing, to the extent possible:

a. Continue schemes like the Mid Day Meal Scheme and the Sarwa Shiksha Scheme to provide meals or ration as feasible along with textbooks and notebooks to government school students.

b. Ensure that statutory benefits under the Food Security Act are disbursed in a timely manner, and updated records are maintained for the same.

c. Monitor the nutritional health of children by leveraging the reach of Anganwadi workers, who can keep track of children's growth by recording the weight and height of children at regular intervals.

d. Work with the experts to procure and prepare digital lectures for students of all classes and age-groups.

e. Enhance the role of Anganwadi and NGO workers in every district, to help spread the message of the importance of continuing education via remote learning platforms. Parents to be educated, for ensuring the child's continuous engagement in education during the pandemic.

f. Install community-level television sets and distribution of radio sets, ensuring the increase of reach of remote learning platforms. Perhaps, at the community level, small batches of children can be shown lectures on televisions, while maintaining social distancing norms.

g. With mobile handset penetration and telephone penetration in the State of Bihar being greater than Television and radio set penetration, the concerned authorities to consider, devising and implementing an action plan t

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