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2024 Supreme(Del) 969

IN THE HIGH COURT OF DELHI AT NEW DELHI
MANMOHAN, C.J., TUSHAR RAO GEDELA, J.
M/s Ravindra Nath – Petitioner
Versus
Municipal Corporation Of Delhi & Anr. - Respondents
W.P.(C) 14324 of 2024 and CM No.59943 of 2024
Decided on : 25-10-2024

Advocates Appeared:
For the Petitioner:Mr. Kamlesh Kr Mishra, Ms. Renu, Ms. Shivani Verma and Ms. Snigdha Anand, Advocates.
For the Respondents:Mr. Sanjay Vashishtha, Standing Counsel with Ms. Vasudha Saini and Ms. Harshita Rai, Advocates

The tendering authority can cancel a tender for a single bidder if it serves public interest by ensuring greater competition.

Headnote:(A) Constitution of India, 1950 - Article 226 - Writ Petition for setting aside cancellation of tender issued by Municipal Corporation - Cancellation upheld on grounds of public interest and need for competitive bidding - Authority has discretion to cancel tender even with single bidder in view of larger public interest - Impugned order justified. (Paras 12, 14, 15)

(B) Tendering process - Public interest considerations - Authority is not bound to accept a single bid if it serves public interest to invite fresh tenders - Past judgments confirm this discretion of tendering authority. (Paras 12, 14)

Facts of the case:
The petitioner filed a writ petition against the cancellation of a tender for parking site due to alleged flaws in the decision-making process by the Municipal Corporation after the tender received only one bid. The petitioner claimed the rejection was contrary to the tender conditions allowing acceptance of single bids.

Findings of Court:
The court upheld the cancellation of the tender, noting the authority acted within its prerogative for public interest.

Issues: Whether the tendering authority had the jurisdiction to cancel the tender based solely on the existence of a single bidder.

Ratio Decidendi: The court found that the tendering authority retains the discretion to cancel the process for public interest, supported by judicial precedent indicating that cancellation for lack of competition is lawful.

Result: Writ petition dismissed.

Table of Content
1. factual basis of the petition. (Para 1 , 2)
2. petitioner's arguments on tender cancellation. (Para 3 , 4 , 5 , 6 , 7 , 8)
3. court's reasoning on tender authority. (Para 10 , 11 , 13 , 15 , 16)
4. principle of public interest in tender processes. (Para 12 , 14)
5. writ petition dismissed with no merits. (Para 17)

JUDGMENT :

TUSHAR RAO GEDELA, J.

1. Present writ petition has been filed under Article 226 of the Constitution of India, 1950 seeking setting aside of order dated 24th September, 2024 having reference no. AC/RPC/MCD/2024/D-1700 passed by the Municipal Corporation of Delhi (hereinafter referred to as ‘MCD’) and the communication dated 22nd August, 2024 bearing reference no. AC/RPC/MCD/2024/D-1354 issued by the Assistant Commissioner, R.P. Cell/MCD whereby the tender has been withdrawn/cancelled. The petitioner further seeks setting aside of parking NIT no. AC/RPC/MCD/2024/D-1430 dated 30th August, 2024 to the extent whereby it invited Tender/Bid for the parking site namely Shamshan Ghat under boundary wall, Geeta Colony.

2. The facts germane to the issue at hand and culled out from the petition are as under:-

(i) Vide notification no.AC/RPC/MCD/2024/D-906 dated 11th July, 2024, respondent no.1/MCD opened a tender for allotment of authorized surface parking sites on a monthly license fee basis. E- Bids were invited for a period of three (3) years and further extendable to another period of two (2) years.

(ii) It is the case of the petitioner that the petitioner, on 18th July, 2024 had submitted a complete bid in response to the respondent no.1/MCD’s tender.

(iii) Petitioner claims that on 26th July, 2024, respondent no.1/MCD issued a communication regarding the status of the tender indicating that the technical evaluation of the submitted bid was in progress and requested the petitioner to submit clarification on certain documents by 30th July, 2024. Accordingly, on 27th July, 2024, the petitioner provided the necessary explanations and additional documents via email to respondent no.2/Assistant Commissioner, R.P. Cell.

(iv) On 21st August, 2024, the petitioner sent a formal letter to the respondent no.1/MCD requesting the opening of the financial bids related to E-tender no. AC/RPC/MCD/2024/D-906.

(v) Thereafter, the petitioner filed a writ petition bearing W.P.(C) 11811/2024 titled as ‘M/s. Ravindra Nath vs. Municipal Corporation of Delhi through its Commissioner & Anr.’ before this Court. However, the same was withdrawn by the petitioner with the liberty to challenge the decision of cancellation of E-tender vide notification no. AC/RPC/MCD/2024/D-1354 dated 22nd August, 2024. This had been communicated to the petitioner via an email dated 23rd August, 2024 informing him that he may visit the portal for further details.

(vi) Thereafter, the petitioner filed another writ petition bearing W.P.(C) 12099/2024 titled ‘Ravindra Nath vs. Municipal Corporation of Delhi through its Commissioner & Anr.’ seeking setting aside of the communication dated 22nd August, 2024 issued by the respondent no.2/Assistant Commissioner, R.P. Cell/MCD whereby the tender has been withdrawn/cancelled. This Court vide order dated 2nd September, 2024, directed the respondents to decide the representation dated 27th August, 2024 by way of a speaking order in accordance with law. However, the said representation was not disposed of by the respondents which led to the filing of contempt petition bearing CONT.CAS(C) 1493/2024 seeking compliance with the order dated 2nd September, 2024. Vide order dated 23rd September, 2024, the respondents were granted time to decide the representation of the petitioner.

(vii) In compliance with the directions of this Court, the respondents passed the impugned order dated 24th September, 2024 having reference no. AC/RPC/MCD/2024/D-1700. Vide the said order, the petitioner’s representation dated 27th August, 2024 was rejected, inter alia, on the following grounds:-

(i) Whenever bids are more than one, values are go

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