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DELHI HIGH COURT
SATISH CHANDRA SHARMA, SUBRAMONIUM PRASAD
Harshidhi Security Services – Appellant
Versus
Delhi Development Authority – Respondent
| Table of Content |
|---|
| 1. overview of tender cancellation and petition (Para 1 , 2) |
| 2. details surrounding the tender process and cancellation (Para 3 , 4 , 5 , 7 , 8) |
| 3. arguments against the arbitrary cancellation of tender (Para 6 , 12) |
| 4. contradictions in tender categorization by respondent (Para 14 , 15 , 29) |
| 5. judicial review principles in tendering process (Para 18 , 19 , 20 , 21 , 22) |
| 6. final ruling on tender cancellation (Para 30 , 31 , 32 , 33) |
JUDGMENT
1. The instant writ petition under Article 226 of the Constitution of India has been filed challenging the Order/Notification bearing No.F6(35)A/PD-4/DDA/2022/119 dated 21.04.2022 issued by the Respondent cancelling the Notice Inviting Tender (NIT) bearing No.12/EE/PD-4/DDA/2021-22 dated 26.02.2022.
2. Shorn of details, the facts leading to the instant writ petition are as under:
a) The Petitioner is a partnership firm registered under the provisions of the Indian Partnership Act, 1932 and is engaged in carrying out the business of providing security guards, security supervisors, Gunmen, labour supplies placement, labour contractor, mechanized housekeeping, cleaning services and manpower Consultant and Consultancy Services etc.
Judicial review in tender matters is limited to cases of arbitrariness or fundamental legal errors; ambiguity in tender specifications justifies cancellation.
Tender disqualification must be reasonable and justified; arbitrary rejections violate principles of fair competition.
The authority's interpretation of tender conditions is paramount, and non-compliance with explicit requirements justifies cancellation of bids.
Lowest bidder has no vested right to contract; authority may cancel tender for valid reasons like cartel without malice; tender conditions not judicially reviewable unless arbitrary.
The tender inviting authority has the right to accept or reject any bid and to annul the bidding process at any time prior to the award of contract without assigning any reason.
The tendering authority's decision should not be interfered with unless it is mala fide, arbitrary, or irrational.
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