State authorities have the right to cancel lease contracts and invite fresh tenders as per government resolutions, which govern existing contracts.

ORDER :

L.S. PIRZADA, J.

1. Learned advocate Mr.Saurabh M. Patel for the petitioner has tendered the draft amendment. The same is allowed in terms of the draft. To be carried out forthwith.

2. Heard learned advocate Mr.Saurabh M. Patel for the petitioner and learned Assistant Government Pleader Ms.Shruti Dhruve for the respondents.

3. By this petition under Article 226 of the Constitution of India, the petitioner has challenged the decision of the respondent – State Authorities vide order dated 29.07.2025, cancelling the lease tender contract for Thorali Water Reservoir situated at Village: Thorali, Taluka: Sihor, District: Bhavnagar de-hors the procedure mentioned in the notification of 2004.

4. It is not in dispute that the present petitioner was initially awarded the tender for five years from 01.07.2017 to 10.06.2022 in view of the Government Resolution dated 25.02.2004. Thereafter, on completion of the period of five years, the contract was extended for a further period of five years by the respondent - State Authorities i.e. from 01.08.2022 to 31.05.2027. However, before the said period could end, the respondent - State Authorities, by invoking the clauses of the Government Resolution dated 11.09.2019, cancelled the tender dated 29.07.2025 and decided to invite fresh tender for granting the Water Reservoirs under the Small Irrigation Scheme.

5. It is the case of the petitioner that the action of the State in inviting fresh tenders for the Water Reservoirs for which, the present petitioner was already holding a contract, is illegal. It was not open for the respondent - State authorities to invite fresh tenders for the very same Water Reservoirs, as the case of the petitioner is governed by the provisions of the Government Resolution dated 25.02.2004.

6. Learned advocate Mr.Saurabh M. Patel for the petitioner submitted that the State has erred in invoking deleted Clause 3(b)(4) of the Government Resolution dated 11.09.2019, which allowed granting of the contract for a period of five years and thereafter, extending the same till ten years. It is submitted that the contract of the present petitioner is required to be extended for a further period of five years and the impugned action of the respondents be quashed and set aside and the petitioner be allowed to continue with the contract. In the alternative, it is submitted that if the Court is not inclined to accept the submission, the petitioner may be permitted to participate in the fresh tender process.

7. In response to the aforesaid submissions, learned Assistant Government Pleader Ms.Shruti Dhruve for the respondent - State authorities submitted that the said issue is already covered by the Order dated 14.07.2025 passed by the Co-ordinate Bench in Special Civil Application No.9611 of 2025 with Special Civil Application No.9612 of 2025 with Special Civil Application No.9613 of 2025. It is submitted that, therefore, the present petition is required to be rejected.

7.1. Learned Assistant Government Pleader Ms.Shruti Dhruve further stated that after the impugned order dated 29.07.2025 came to be passed, a fresh tender process was initiated for Thorali Water Reservoir and the tender was awarded to the successful bidder.

8. Having considered the arguments advanced by the learned advocates appearing for the respective parties, it is profitable to peruse the Order dated 14.07.2025 passed by the Co-ordinate Bench in Special Civil Application No.9611 of 2025 and allied matters. By the said Order dated 14.07.2025, the Co-ordinate Bench has interpreted the conditions of the Government Resolution dated 11.09.2019, more particularly, Clause 3(b)(4) of the Government Resolution dated 25.02