Government is not bound to accept tender of person who offers highest amount.

( 1 ) IT is the case of the writ petitioner that like previous occasions the respondent 1 Bharat Coking Coal Ltd. in or about March, 1987 issued tender notice whereby sealed tenders were invited from intending buyers for the sale and disposal of various iron and steel scrap materials from various places of Central Coal Washeries Organisations situate at Dugda, Bhojudih and Patherdih. The terms and conditions for the said tender were inter alia as follows.- (a) All items as mentioned in the Schedule of disposal would be sold on "as IS, WHERE IS" basis. (b) The intending tenderers should quote their prices against the items in which they are interested on the body of the Schedule only. Quotations given on plain paper would not be accepted. (c) The earnest money as indicated against each item quoted must accompany the tender in full, otherwise quotation will not be considered at all. Such deposit should only be in the form of Bank Draft drawn on State Bank of India, Dhanbad in favour of "bharat Coking Coal Ltd. " A/c Central Coal Washeries Organisation Dhanbad". No cheque will be accepted towards earnest money. The tender would be rejected outright unless accompanied with the earnest money as prescribed in the tender. This earnest money would be adjusted against the security deposit to be furnished by the successful tenderer. If the tenderer fails to deposit the security money on acceptance of this rate by CCWO as required in clause 4 (b) the earnest money would be forfeited. (d) The tenders shall remain open and valid for acceptance by CCWO for a period of 6 months from the date of opening of tender. On or about 6th April, 1997 the petitioner purchased one tender notice and/or conditions of sale which were sold in cyclostyled form against payment of Rs. 100/ -. Such tender forms were sold at various places including Dhanbad and 6 Lyons Range, Calcutta. On or about 1oth April, 1987 petitioner 1 duly submitted tender for purchase and lifting the various scrap and rejected iron and steel materials, conveyor belt scrap lying at Dugda, Bhojudih and Patherdih coal washeries. Petitioner duly quoted rate for purchase of individual items of scrap materials and the said rates were highest rate in respect of different such items. Petitioner 1 in terms of the said tender conditions on or about 10th April, 1987 duly deposited a sum of Rs. 67, 000/- being an aggregate amount of earnest money with respondent 1 at the office of the respondent 3. On 10th April, 1987 the tender of the petitioner 1 along with other tenders submitted by other intending buyers was opened and it was found and declared that the petitioner 1 was the highest bidder/offerer in respect of several items of material lying at Dugda and Bhojudih. The particulars of the materials with prices in respect of which the petitioner I was declared highest bidder/ offerer are mentioned hereunder :-

( 2 ) IT is the case of the petitioner that on the date of opening of the tenders the respondent 2 and/or his representatives and/or subordinates duly assured petitioners and/or their representative that the formal acceptance of the said tender in respect of the said tender will be issued in due course. In terms of the said conditions of sale the tender was to be kept open and valid for six months for acceptance by the respondents. It has been alleged that the respondent 2, did not take any step whatsoever for issue of acceptance letter until 27th October, 1987 when the respondent 3 by his letter dated October 27, 1987 addressed and received at 83, Madan Mohan Burman Street, Calcutta asked the petitioner 1 to extend the validity of the tender till 30th November, 1987 within seven days. It has been alleged that by issuing the said letter the respondents evinced an unequivocal intention to issue letter of acceptance in respect of the petitioners' highest offer though not within the originally stupulated time but within the mutually extended period. Petitioners by a letter dated