IN THE HIGH COURT OF GAUHATI, ASSAM, NAGALAND, MIZORAM AND ARUNACHAL PRADESH
MANISH CHOUDHURY, J.
Hasmat Ali, S/o. Late Sanifuddin Seikh - Petitioner
Versus
The State of Assam, Represented by the Commissioner and Secretary to the Govt. of Assam, Panchayat and Rural Development Deptt. & Ors. - Respondents
W.P.(C) No. 45 of 2022
Decided On : 17-05-2022
Constitution of India, 1950 – Article 226 – Assam Panchayat Act, 1994 – Section 109[6], 52 –Contract/Tender - Whether or not the tenderer fulfils eligibility criteria and other terms and conditions –Whether its intervention is called for or not and it is only when it comes to a conclusion that overwhelming public interest requires interference, the Court should intervene. Court should always keep the larger public interest in mind in order to decide whether its intervention is called for or not and it is only when it comes to a conclusion that overwhelming public interest requires interference, the Court should intervene. Para 23.
Finding of the court:
It is settled that submission of a tender in response to a notice inviting such tenders is about making an offer which the State or its agencies/instrumentalities are under no obligation to accept – It is not open for the bidders participating in the bidding process to insist that their tenders should be accepted merely because a given tender is the highest or lowest depending upon nature of the bidding process, be it for sale of public property or for execution of works on behalf of the tendering authority – Facts and circumstances obtaining case in hand, when aspect of a higher bid value offered by petitioner which bid was non-complaint to terms and conditions of the Tender Notice at time of submission of bid is considered qua decision of General Standing Committee to accept bid of respondent no. 8 whose bid was compliant to terms and conditions Tender Notice at time of its submission, this Court is of considered view that it is decision of General Standing Committee leading to impugned order of settlement, which is to be respected for keeping competitive bidding process initiated by Tender Notice a fair, transparent and non-discriminatory one in public interest and as said decision is found in conformity with principles of equality engrafted in Article 14 of the Constitution of India
Results: Petitioner is dismissed.
JUDGMENT :
By this writ petition under Article 226 of the Constitution of India, the petitioner has assailed an order dated 18.12.2021 passed by the respondent no. 4 i.e. the Chief Executive Officer, Darrang Zilla Parishad, whereby, the settling authority had settled a market viz. ‘Tangni Weekly Open Market’ [‘the Market’, for short] in favour of the respondent no. 8 for the period from 25.12.2021 to 30.06.2022. While seeking setting aside of the impugned order dated 18.12.2021, the petitioner has also sought for a direction to the respondent authorities to grant settlement of the Market in favour of the petitioner.
2. By a Tender Notice dated 21.06.2021 published by the Pub Mangaldoi Anchalik Panchayat, Dhola, sealed bids were invited from interested bidders for settlement of a number of markets/ghats/fisheries falling within its jurisdiction for the Panchayat Financial Year : 2021-2022 and for the period from 01.07.2021 to 30.06.2022 as per the provisions of the Assam Panchayat Act, 1994, as amended. It was mentioned that the period of settlement would be effective from the date of finalization of the settlement of the bidding process. As per the Tender Notice, the last date of submission of bids was originally fixed up to 02-00 p.m., 05.08.2021. After publication of the Tender Notice on 21.06.2021, a litigation ensued before the Court of learned Munsiff no. II, Darrang and the bidding process came to be stalled by virtue of an interim order dated 03.08.2021 passed by the learned Court. Later on, the Court of learned Munsiff withdrew the interim order on 03.09.2021. Thereafter by a subsequent notice dated 04.09.2021, the respondent no. 4 had intimated that the bidding process would recommence and the bids would be received up to 02-00 p.m., 20.09.2021 and the terms and conditions of the bidding process would remain the same as had been incorporated in the Tender Notice dated 21.06.2021. One of the markets which was sought to be settled by the Tender Notice dated 21.06.2021 and the Notice dated 04.09.2021 was Tangni Weekly Open Market [‘the Market’].
2.1. In the Tender Notice dated 21.06.2021, the annual Government value fixed for the Market was Rs.5,90,422/- and the earnest money required to be deposited was Rs.59,043/-.
2.3. In response to the Tender Notice, 8 nos. of bidders including the petitioner and the respondent no. 8, had submitted their bids quoting different bid values. The names of the bidders including their bid values, in descending order, were as under :-
| Sl.No. | Bidder number | Bid value offered |
| 1. | Bidder no. 1 | Rs. 18,52,709/- |
| 2. | Bidder no. 2 [the petitioner] | Rs. 12,12,507/- |
| 3. | Bidder no. 3 | Rs. 11,51,101/- |
| 4. | Bidder no. 4 | Rs. 11,11,000/- |
| 5. | Bidder no. 5 | Rs. 8,57,809/- |
| 6. | Bidder no. 6 [the respondent no. 8] | Rs. 8,11,000/- |
| 7. | Bidder no. 7 | Rs. 7,53,919/- |
| 8. | Bidder no. 8 | Rs. 7,31,000/- |
2.4. After receipt of the bids from the participating bidders, the General Standing Committee of the Anchalik Panchayat opened the bids of all the bidders. Thereafter, the General Standing Committee of the Anchalik Panchayat examined the tender papers and recorded their comments in respect of the bids in a comparative statement prepared for the purpose. The office of the Anchalik Panchayat forwarded the bid documents along with the comparative statement recording their comments at relevant places therein to the office of the Darrang Zilla Parishad in terms of the provisions of Section 109[6] of the Assam Panchayat Act, 1994, as amended. After receipt of the tender papers along with the comparative statement, the General Standing Committee of the Zilla Parishad evaluated the bids and after such evaluation, the General Standing Committee of the Zilla Pa
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Point of Law : Court should always keep the larger public interest in mind in order to decide whether its intervention is called for or not and it is only when it comes to a conclusion that overwhelm....
The highest valid bidder should be considered for settlement, and acceptance of a tender other than the highest valid tenderer requires prior and formal approval of the government. The competitive bi....
Acceptance of a lesser bid may be permissible but in case of settlement of a market under the aegis of the Anchalik Panchayat and/or Zilla Parishad, the same is ordinarily required to be settled in f....
Process of settlement resulting into the order of settlement in favour of the respondent no. 6 is found to be vitiated one due to taking into account irrelevant factors in the decision making process....
Fairness demanded that the tendering authority should have disclosed to all the tenderers beforehand that the bid value above a particular amount or above a particular percentage of the scheduled rat....
Failure to challenge a clause in the tender notice during the selection process precludes a party from challenging it later.
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