IN THE GAUHATI HIGH COURT (HIGH COURT OF ASSAM, NAGALAND, MIZORAM AND ARUNACHAL PRADESH)
MANISH CHOUDHURY, J.
Sri Babul Das, S/o Late Gopal Das – Appellant
Versus
The State of Assam – Respondent
Writ Petition (Civil) no. 3941 of 2022
Decided on : 28-02-2023
Constitution of India, 1950 - Article 226 - Rules for Procedure for the Sale of Pounds and Markets by Municipal Boards and Town Committees in Assam - Rule 7 - Tender - Higher bid - Petition assailing part of respondent in settling Fish Market in favour of respondent no. 6 on ground that bid of petitioner was found to be a valid one; petitioner’s offered bid value was a higher one than that of respondent no. 6 – Held, Court is of unhesitant view that in accepting of bid of respondent no. 6 whose offered bid value was 3rd highest amongst 6 [six] participant bidders, by respondent Municipal Board authorities ignoring two higher bid values offered by other two bidders including petitioner, whose bids were also found responsive in nature, in settling Fish Market, respondent authorities were guided by irrelevant factors in decision-making process which also had a negative effect for State Exchequer - There was no public interest found involved in decision-making process in awarding settlement of Fish Market in favour of respondent no. 6 at a lesser settlement amount - Court is of view that order being arbitrary, is not sustainable in law and is liable to be set aside - Same are accordingly set aside - Petition allowed.
JUDGMENT :
This writ petition under Article 226 of the Constitution of India has been preferred by the petitioner assailing the action on the part of the respondent Mangaldoi Municipal Board authorities in settling the Fish Market in favour of the respondent no. 6 inter alia on the ground that the bid of the petitioner was found to be a valid one; the petitioner’s offered bid value was a higher one than that of the respondent no. 6 and there was infraction of Rule 7 of “the Rules for Procedure for the Sale of Pounds and Markets by Municipal Boards and Town Committees in Assam”, on the part of the respondent Mangaldoi Municipal Board authorities in granting the settlement.
2. The facts which are necessary for adjudication of the issue raised in this writ petition, can be delineated, in brief, as follows:-
2.1 A Tender Notice dated 27.04.2022 [‘the Tender Notice’] for settlement of markets/parking stands/fisheries, etc. was published by the Chairman, Mangaldoi Municipal Board inviting sealed bids from intending bidders for settlement of a number of markets. By the said Tender Notice, a number of markets/parking stands/fisheries, etc. were sought to be settled. One such market was ‘the Fish Market’ within the territorial jurisdiction of the respondent Mangaldoi Municipal Board for the year : 2022-2023. The last date of submission of bids was upto 01-00 p.m., 23.05.2022. As per the Tender Notice, the minimum value of the Fish Market was fixed @ Rs. 6,59,962/-and the successful bidder had to deposit 2% of Rs. 6,59,962/-as the earnest money deposit.
2.2 It is an admitted position, as revealed from the records of settlement, that in response to the Tender Notice for settlement of Fish Market, a total of 6 [six] nos. of bids were received from the bidders quoting different bid values. The bid values, in descending order, quoted by the 6 [six] nos. of bidders were as under :-
| Sl. No. | Bidder number | Bid value offered |
| 1 | Bidder no. 1 | Rs. 15,82,900/- |
| 2 | Bidder no. 2 [the petitioner] | Rs. 13,53,600/- |
| 3 | Bidder no. 3 [the respondent no. 6] | Rs. 12,25,000/- |
| 4 | Bidder no. 4 | Rs.12,01,111/- |
| 5 | Bidder no. 5 | Rs. 11,00,500/- |
| 6 | Bidder no. 6 | Rs. 9,10,111/- |
2.3 When the Chairman, Mangaldoi Municipal Board issued an order of settlement dated 30.05.2022 settling the Fish Market in favour of the respondent no. 6 at his offered bid value of Rs. 12,25,000/-, the petitioner has approached this Court by this writ petition challenging the said action of the respondent Municipal Board authorities in settling the Fish Market in favour of the respondent no. 6.
3. Heard Mr. B. Rahman, learned counsel for the petitioner; Mr. M. Chetia, learned Junior Government Advocate, Assam for the respondent nos. 1 – 5; and Mr. M. Nath, learned senior counsel assisted by Mr. A. Bhattacharya, learned counsel for the respondent no. 6
4. Mr. Rahman, learned counsel for the petitioner has submitted that the bid of the petitioner was found to be a valid one by the respondent Municipal Board authorities and the petitioner’s offered bid value was higher than the respondent no. 6. Mr. Rahman has further submitted that after passing of the order of settlement on 30.05.2022, the 1st highest bidder viz. Tarapad Das by writing a letter dated 04.06.2022, addressed to the Chairman, Mangaldoi Municipal Board, had sought refund of his earnest money deposit as he could not get the settlement of the Fish Market. But the petitioner has not sought refund of his earnest money deposit and challenged the arbitrary action on the part of the respondent Municipal Board authorities in settling the Fish Market in favour of the respondent no. 6, who had offered a lesser bid value than the petitioner. Mr. Rahman has further submitted that Rule 7 of ‘the Rules for Procedure for the Sale of Pounds and Markets by Municipal Boards and Town Committees
Point of Law : Process of settlement resulting into the order of settlement in favour of the respondent no. 9 is found to be arbitrary and irrational one.
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....
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....
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....
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....
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....
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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