Point of Law: respondent authority has right to refuse the lowest or any other tender bid or bids submitted, provided its decision is neither arbitrary nor unreasonable.

ORDER :

(PER : HONOURABLE MR. JUSTICE R.M.CHHAYA)

1. Heard Mr. Jayesh Kotecha, learned advocate for the petitioner, Mr. Tirthraj Pandya, learned AGP for respondents no.1 and 2 and Mr. Jaimin Dave, learned advocate for respondent no.3.

2. By way of this petition under Article 226 of the Constitution of India, the petitioner has prayed for the following reliefs -

“(A) Your Lordships may be pleased to issue a writ of mandamus and or any other appropriate writ/order/direction by way of declaring the petitioner as successfully bidder of old tender “2020-2021” (ANNEXURE-A) and further be pleased to quashed and set aside the decision on the part of respondent no.2 to issued a new tender dated 01/07/2020 (ANNEXURED) as the same is illegal and arbitrary.

(B) That till the pendency of the present petition as well as the final hearing, your lordship may be pleased to stay the implementation and operation of the new tender dated 01/07/2020 (ANNEXURED), ion the interest of justice.”

3. The following facts emerge from the record of the petition -

3.1 It is the case of the petitioner that through e-tender notice dated 21.05.2020 issued by the respondent no.2, for providing vehicles for towing for the year 2020-2021, the petitioner applied for the same along with other bidders, one of it being respondent no.3 Rushiraj Travels and Giriraj Travels. When the petition was filed, it was alleged that respondents are in the verge of diluting the tender bid proceedings in favour of some third person due to the vested interest.

3.2 It is the case of the petitioner that on such apprehension, the petitioner addressed a letter to respondent no.2 on 24.06.2020 and without replying to the same, a new tender notice dated 01.07.2020 came to be issued by the respondent authorities. It is contended that such action of the respondent no.2 is arbitrary, illegal and beyond the authority of law.

3.3 It is also alleged that the respondent authorities have not bothered to reply to the communication dated 24.06.2020 which speaks volume of ill intention on the part of the respondent no.2. It is the case of the petitioner that in the first tender, every bidder had quoted their rates and the petitioner was the lowest bidder. The respondent no.3 had quoted nil (0) rates which suggests that respondent no.2 is trying to assist someone. It is the case of the petitioner that rates of the earlier bidding are open to access by the third party and prospective bidders and hence, there are all probable chances that the lowest bid may be overreached. It is contended that the action on the part of the respondent no.2 is ill-action and dehors the well settled principles of law. On the aforesaid grounds, the petition is preferred.

4. In response to the notice issued by this Court vide order dated 31.07.2020, the learned Government Pleader informed this Court on 18.08.2020 that respondent no.3 has been awarded the contract and hence, respondent no.3 was added as party respondent vide order dated 18.08.2020. In response to notice issued by this Court, the respondent no.2 has filed an affidavit. It is contended by respondent no.2 that the petitioner has no locus to file the present petition and that there is no privity of contract between the petitioner and the respondent authority. It is contended that in absence of any fundamental or legal right accrued in favour of the present petitioner, the present petition under Article 226 of the Constitution of India is not maintainable. It is contended that the contentions and allegations attributed by the petitioner are absolutely baseless, unsubstantiated and frivolous. Denying all the contentions, it is contended that the respondent no.2 floated tender dated 21.05.2020 and also published the said notice in local newspaper of 21.05.2020 and therefore, it is not an undated E-tender notice as alleged by the petitioner. The respondent no.2 has further contended that the last date of filing of the tender was scheduled on 22.06.2020 and the tenders were to