Madan B. Lokur, C.J.

1. The issue that arises for consideration is whether the State of Tripura was entitled to cancel the tender process in respect of High Security Registration Plates on Motor Vehicles, and if so, whether the power was validly exercised. In my opinion, the answer to the first question is in the affirmative but in respect of the second question, the answer is in the negative. In view of the answer to the second question, the prayers in the writ petition must be granted.

The Facts

2. On or about 20th August, 2009 Respondent Nos. 1 to 5 (the State of Tripura and its officials - hereinafter referred to as the State or the Government) issued a notice inviting tender (NIT) for High Security Registration Plates for Motor Vehicles. The bidders were expected to submit their bid in two parts, the first part being a technical bid and the second part being a price bid or a financial bid.

3. Initially the last date for receiving the bids was 18th September, 2009 but this was eventually extended till 17th May, 2010. By that date, bids were tendered by five entities, namely:

(a) Promukh Hoffman International Ltd,

(b) M/S Hind Industries Ltd,

(c) Akruti Security Plates Pvt. Ltd. (Petitioner),

(d) Real Mazon, and

(e) Tonnejes Eastern Securities Ltd (Respondent No. 6).

4. Clause 2.2 of the NIT provides for the manner of submission of documents. This Clause specifically states that the offer shall be submitted in two separate envelopes numbered and marked on the cover as "Technical Qualification Bid" and "Financial Bid". Both the envelopes are required to be put inside a separate larger envelope marked as "BID FOR HIGH SECURITY REGISTRATION SYSTEM". Clause 2.2 of the NIT specifically provides that any deviation in the manner of submission of documents would lead to disqualification of the bid.

5. Insofar as Real Mazon and Tonnejes Eastern Securities Ltd (Respondent No. 6) are concerned, they submitted their bids in multiple packets, in violation of Clause 2.2 of the NIT. Consequently, their bids were not considered being "informal". Therefore, only three of the original five bids were considered by the State for award of the contract.

6. At this stage, it is important to state that neither Real Mazon nor Tonnejes Eastern Securities Ltd (Respondent No. 6) have challenged their disqualification.

7. Clause 2.23 of the NIT provides for the criteria for evaluation of the bids. Clause 2.23.2 provides that an Evaluation Committee would be constituted by the Government of Tripura in the Transport Department for a detailed scrutiny of the bids. Accordingly, the State constituted an Evaluation Committee to evaluate the bids given by the remaining three bidders.

8. On or about 26th August, 2010 the Evaluation Committee examined the technical bid and the financial bid of the three remaining bidders and submitted a rather detailed report, along with its recommendations.

9. The financial bids were to be submitted in Form I and Form II. Clause 2.7.1 of the NIT provides that in Financial Bid Form I the bidder should quote rates for supplying and fixing complete set of registration plates including 3rd registration plate (where required) and snap lock for each category of vehicle. This Clause further states that in Financial Bid Form II the bidder should give item-wise details of rates for the purpose of Individual Registration Plate. The Clause stipulates that the sum total of Financial Bid Form II should not be more than the rate quoted in Financial Bid Form I.

10. Keeping this in mind, the Evaluation Committee concluded, on an examination of Financial Bid Form I, that Hind Industries had quoted the lowest average price among all three bidders. However, on an examination of Financial Bid Form II, the Evaluation Committee found anomalies in the rate quoted by Hind Industries as well as by Promukh Hoffman International Ltd.

11. In its Report/Recommendations, the Evaluation Committee concluded that:

It is therefore imperative that both bidders M/s Promuk