IN THE GAUHATI HIGH COURT (HIGH COURT OF ASSAM, NAGALAND, MIZORAM AND ARUNACHAL PRADESH)
MANISH CHOUDHURY, J.
Abdus Samad S/o. Lt. Babar Ali – Appellant
Versus
The State Of Assam And Ors. – Respondents
WP(C) 6902 of 2021
Decided on : 17-05-2022
Constitution of India, 1950 – Article 226, 14 –Assam Panchayat Act, 1994 – Section 109[6], 81 –Assam Panchayat [Financial] Rules, 2002 – Rule 47 – Direction to respondent authorities to grant settlement of Market in favour of petitioner. a Court before interfering in tender or contractual matters in exercise of power of judicial review, should pose to itself two questions :-[i] whether the process adopted or decision made by the authority is malafide or intended to favour someone; or whether the process adopted or decision made is so arbitrary and irrational that the Court can say : “the decision is such that no reasonable authority acting reasonably and in accordance with relevant law could have reached”; and [ii] whether public interest is affected. If the answers to the two questions are in the negative, then there should be no interference under Article 226 of the Constitution of India. Para 23.
Finding of the court:
When the aspect of a higher bid value offered by the petitioner which bid was non-complaint to the terms and conditions of the Tender Notice at the time of submission of bid is considered qua the decision of the General Standing Committee of the Zilla Parishad to accept the bid of the respondent no. 8 whose bid was compliant to the terms and conditions of the Tender Notice at the time of its submission, this Court is of the considered view that it is the decision of the General Standing Committee of the Zilla Parishad leading to the impugned order of settlement, which is to be respected for keeping the competitive bidding process initiated by the Tender Notice a fair, transparent and non-discriminatory one in public interest and as the said decision is found in conformity with the principles of equality engrafted in Article 14 of the Constitution of India. The General Standing Committee of the Zilla Parishad, that is, the competent authority under the Assam Panchayat Act, 1994 to settle the Market did not seek prior and formal approval of the State Government under Rule 47 [10] of the Rules, 2002 to settle the Market in favour of the petitioner also who was otherwise not the highest valid bidder and as such, no semblance of right is found accrued in the petitioner in any manner to seek the direction to settle the Market in his favour in the absence of any such recognition.
Results: Petitioner is dismissed.
JUDGMENT :
By this writ petition under Article 226 of the Constitution of India, the petitioner has assailed an order dated 04.12.2021 passed by the respondent no. 4 i.e. the Chief Executive Officer, Darrang Zilla Parishad, whereby, the settling authority had settled a market viz. ‘Alikash Daily Vegetable Market’ [‘the Market’, for short] in favour of the respondent no. 8 for the period from 05.12.2021 to 30.06.2022. While seeking setting aside of the impugned order dated 04.12.2021, 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 Dalgaon Shialmari Anchalik Panchayat, 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 District Judge, Darrang and the bidding process came to be stalled by virtue of an interim order dated 29.07.2021 passed by the learned Court. Later on, the Court of learned District Judge withdrew the interim order on 02.09.2021. Thereafter by a subsequent Notice dated 03.09.2021, the respondent no. 4 had intimated that the bidding process would recommence and the bids would be received up to 02-00 p.m., 18.09.2021 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 03.09.2021 was Alikash Daily Vegetable Market [‘the Market’].
2.1. In the Tender Notice dated 21.06.2021, the annual Government value fixed for the Market was Rs. 5,89,600/- and the earnest money required to be deposited was Rs. 58,960/-.
2.2. In response to the Tender Notice, 16 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 [the petitioner] | Rs.71,17,777/- |
| 2 | Bidder no. 2 | Rs. 65,52,000/- |
| 3 | Bidder no. 3 | Rs. 42,12,786/- |
| 4 | Bidder no. 4 | Rs. 35,77,777/- |
| 5 | Bidder no. 5 | Rs. 32,12,786/- |
| 6 | Bidder no. 6 | Rs. 27,77,777/- |
| 7 | Bidder no. 7 | Rs. 25,52,786/- |
| 8 | Bidder no. 8 | Rs. 21,77,777/- |
| 9 | Bidder no. 9 | Rs. 17,52,786/- |
| 10 | Bidder no. 10 | Rs. 16,70,777/- |
| 11 | Bidder no. 11 | Rs. 14,12,761/- |
| 12 | Bidder no. 12 | Rs. 12,12,756/- |
| 13 | Bidder no. 13 | Rs. 11,12,786/- |
| 14 | Bidder no. 14 [the respondent no. 8] | Rs. 9,12,786/- |
| 15 | Bidder no. 15 | Rs. 8,12,786/- |
| 16 | Bidder no. 16 | Rs. 6,12,786/- |
2.3. 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
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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....
Point of Law : When a bidder gets an order by suppression or concealment of material facts and the tendering authority despite having knowledge of the fact that the bidder has adopted a practice whic....
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