IN THE HIGH COURT OF JUDICATURE AT PATNA
ASHUTOSH KUMAR, PARTHA SARTHY
JMD Services Private Limited – Appellant
Versus
State of Bihar – Respondent
| Table of Content |
|---|
| 1. issues regarding the tender cancellation. (Para 1 , 2 , 5) |
| 2. statutory compliance in the tender's clauses. (Para 3 , 4 , 21) |
| 3. arguments about public interest and the legality of the tender conditions. (Para 16 , 19 , 20) |
| 4. principles guiding judicial review in government contracts. (Para 27 , 28 , 30) |
| 5. conclusion affirming the dismissal of writ petitions. (Para 40 , 41) |
JUDGMENT :
Ashutosh Kumar, ACJ
The central issues in all the writ petitions are:(a) Whether the Government/ Government Agency is justified in cancelling the tender which was issued inviting bidders for empanelment of agencies only on the ground of one of the conditions in the tender being technically incorrect and not in conformity with the Private Securities Agencies (Regulation) Act, 2005 (hereinafter referred to as the 'Act of 2005')?; (b) Whether the contract with the successful bidders under the tender could be cancelled without issuing notice to them?; (c) Whether the faulty condition in the tender could be segregated and the already entered into contract could be saved?; (d) Whether the State has the authority to cancel the tender when the selection process has not been adversely commented u
Sterling Computers Limited vs. M/s M & N Publications Limited & Ors.
The court affirmed that compliance with statutory provisions in public tenders is essential, and arbitrary cancellation without notice is unjustified, upholding the tender cancellation based on legal....
(1) Cancellation of Tender – Sanctity of contracts is a fundamental principle that underpins stability and predictability of legal and commercial relationships – When public authorities enter into co....
The cancellation of a tender process before technical evaluation does not confer vested rights to bidders, and adherence to procurement laws is mandatory in future processes.
Public authorities must ensure transparency and fairness in tender processes, adhering to legitimate expectations and justifiable reasons for actions affecting bidders.
Tender – Government is protector of financial resources of State and it has every right to cancel and call for fresh tender if it is in nature of protecting financial interests of State.
The authority's interpretation of tender conditions is paramount, and non-compliance with explicit requirements justifies cancellation of bids.
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