IN THE HIGH COURT OF GAUHATI, ASSAM, NAGALAND, MIZORAM AND ARUNACHAL PRADESH
SANJAY KUMAR MEDHI, J.
KHIROD DEKA S/O LATE BABULI DEKA – Petitioner
Versus
THE STATE OF ASSAM – Respondent
W.P. (C) No. 4585 of 2022
Decided On : 01-11-2022
Assam Panchayat (Financial) Rules, 2002 - Rule 47(10) - Constitution of India, 1950 - Article 226 - Tender - Higher Bid - Valid Bid - Whether respondent authorities are justified in allotting a market in favour of respondent no. 7 in spite of fact that bid of petitioner is higher than that of respondent no. 7 – To compete in financial aspect, a bid has to first be declared as a valid bid so that bidder enters into arena for financial evaluation. Para 12
Finding of the Court:
Petitioner does not fulfil tender conditions, his bid cannot be termed as a valid bid and therefore, financial aspect becomes otiose - It is a settled law that a challenge can be maintained only on behest of an eligible person which in this case has been held against petitioner - Nevertheless, even if ground of challenge against private respondent no. 7 is considered, same pertains to a confusion with regard to one of criteria namely, Certificate of Financial Soundness - Since there is a finding that such Certificate is submitted by Jamindar of respondent no. 7, contention of petitioner cannot be held to be correct and even if challenge is examined on merits, ground is without any basis - This Court in exercise of powers under Article 226 of Constitution of India is only to examine decision making process and not merits of decision - Records clearly show that conclusion arrived at in settling Market with respondent no. 7 is based on relevant consideration and is a plausible conclusion which appeals to a reasonable mind - Further, no mala-fide has been able to be made out.
Result: Petition dismissed.
JUDGMENT :
SANJAY KUMAR MEDHI, J.
1. Two numbers of issues have arisen for determination in the instant case. The principal issue is as to whether the respondent authorities are justified in allotting a market in favour of the respondent no. 7 in spite of the fact that the bid of the petitioner is higher than that of the respondent no. 7. However, before deciding the issue, the preliminary issue which requires determination is as to whether a bidder whose bid is defective is eligible to maintain such a challenge. It is needless to say that if the preliminary issue is decided against the petitioner, there would be no requirement to decide the second question which otherwise also is a settled position in law that it is the highest bidder in a tender pertaining to a settlement of a Mahal etc. who is generally offered the settlement and in case of deviation, the same has to be justified by cogent and reasonable grounds.
2. However, to decide the aforesaid issues, the bare minimum facts of the case is required to be put on record.
3. The matter pertains to settlement of the Khelmati Weekly Market (hereinafter called the Market) under the Sonitpur Zila Parishad. A NIT was published on 21.05.2022 for settlement of different markets under the Balipara Anchalik Panchayat within the Sonitpur Zila Parishad for the year 2022-23. It is the case of the petitioner that he had submitted his bid for the aforesaid Market on 20.06.2022. Though the petitioner has claimed to have submitted all the required documents along with the bid, he came to learn that his Jamabandi was removed from the set of papers and he had accordingly filed a complaint to the Chief Executive Officer, Sonitpur Zila Parishad. On the same date, the settlement of the Market was made with the respondent no. 7 which is the subject matter of challenge in this writ petition. The petitioner has further contended that the certified copy of the Comparative Statement was itself furnished to the petitioner belatedly.
4. It is the contention of the petitioner that the bid offered by the petitioner is higher than that of the respondent no. 7 and therefore, the impugned action is not sustainable in law and liable to be set aside and a further direction may be issued for settlement of the Market with the petitioner.
5. I have heard Shri M.H. Choudhury, learned Senior Counsel assisted by Shri M.K. Choudhury, learned counsel for the petitioner. I have also heard Shri NK Dev Nath, learned Standing Counsel, P&RD Department for the respondent nos. 1 to 6. None has appeared for the respondent no. 7 in spite of completion of service. The records placed before this Court have also been duly perused.
6. Shri Choudhury, the learned Senior Counsel has submitted that in a settlement which earns revenue, the amount involved is of paramount importance. By drawing the attention of this Court to the pleadings, more specifically, paragraph 4 of the writ petition, it is submitted that whereas the bid of the petitioner was Rs. 8,21,951/- that of the respondent no. 7 was Rs. 7,05,071/-. Thus, it is submitted that the difference is more than Rs. 1,00,000/- (Rupees One Lac) which is a substantial amount considering the bid in question. It is further submitted that the bid of the respondent no. 7 is defective inasmuch as, he did not meet certain criteria of the tender conditions and there were inconsistencies which is evident from the Comparative Statement. By referring to the said Statement, it is submitted that so far as financial soundness of the respondent no. 7 is concerned, there is a marked inconsistency.
7. Reference is also made to Rule 47(10) of the Assam Panchayat (Financial) Rules which prescribe for granting the settlement with the highest bidder. The learned Senior Counsel submits that being prima facie satisfied, this Court while issuing notice of motion vide order dated 08.07.2022 had passed an interim order staying the impugned order of settlement with a liberty to the Balipara Anchalik Panchayat to c
Rule 47(10) of Assam Panchayat (Financial) Rules which prescribe for granting settlement with the highest bidder.
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....
The decision to settle a market must be based on fair treatment of bidders and relevant commercial factors, and changing the goalpost during the bidding process is impermissible.
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....
In matters of tender settlement, the fulfillment of tender conditions and the reasonableness of the decision are crucial factors for judicial review.
Bid submission does not guarantee acceptance; judicial review is warranted only for arbitrary decisions in tender processes.
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....
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