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DELHI HIGH COURT
VIPIN SANGHI, JASMEET SINGH
Insituform Pipeline Rehabilitation Private Limited – Appellant
Versus
New Delhi Municipal Council – Respondent
JUDGMENT
1. The present petition has been filed by the petitioner seeking substantially the following reliefs:
"a. Issue a writ of mandamus and/or certiorari and/or any other appropriate writ/order/direction in the nature thereof, quashing the decision of Respondent taken on 04.06.2021 to cancel the tender pertaining to the Project and all acts/actions taken by the Respondent in furtherance thereto and also restrain the Respondent from re-tendering/inviting fresh bids and/or take any further steps/actions in relation to the Project in question against the Petitioner:
b. Issue a writ of mandamus and/or any other appropriate writ/order/direction in the nature thereof directing the Respondent to award the work contract in relation to the Project to the Petitioner in pursuance to the evaluation of Petitioner's bid on 10.09.2020....."
2. The petitioner is aggrieved by cancellation of tender pertaining to Rehabilitation of Existing 1100-1200 MM DIA Sewer Line along Ashoka Road from Nirwachan Sadan to C-Hexagon (hereinafter called the "Project") which, according to the petitioner, has been arbitrarily, whimsically and mala fidely cancelled.
3. Briefly stating the facts giving rise
A public authority's decision to cancel a tender must be reasoned and not arbitrary; failure to provide justifications exposes such decisions to judicial scrutiny.
The validity of administrative decisions must be judged on the basis of reasons existing on record, and the authority cannot provide new/additional reasons when the Court calls for them as they must ....
Every decision of the State must be supported by reasons and cannot be arbitrary, whimsical, or capricious.
The authority's interpretation of tender conditions is paramount, and non-compliance with explicit requirements justifies cancellation of bids.
The tender accepting authority may cancel bids without stated reasons and has discretion in evaluating tenders based on competitive pricing, as upheld by the court.
The public law remedy by way of a Writ Petition under Article 226 of the Constitution is not available to seek specific performance or damages.
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....
The cancellation of a tender by an authority after the bidding process is complete is arbitrary unless supported by clear, substantiated justifications, reaffirming the need for transparency and fair....
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