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2025 Supreme(Gau) 784

IN THE GAUHATI HIGH COURT (HIGH COURT OF ASSAM, NAGALAND, MIZORAM & ARUNACHAL PRADESH) 
KAUSHIK GOSWAMI, J.
Sri Ranjit Baruah, Son of Late Purendra Nath Baruah Proprietor of M/s Ranjit Baruah - Appellant 
Versus
The State of Assam
Writ Petition No.1597 of 2024
Decided on : 17-06-2025

Advocates:
Advocate Appeared:
For the Appellant : Mr. S. Sarma, learned Senior Counsel assisted by Mr. A. Gautam.
For the Respondent:Mr. B. Gogoi, learned Additional Advocate General, Assam.

The court emphasized the necessity for transparency in public procurement processes, ruling that arbitrary actions in tender decisions violate procedural fairness and statutory requirements.

Headnote:(A) Constitution of India - Article 226 - Assam Public Procurement Act, 2017 - Procurement Process - Writ petition challenging cancellation of tender and re-tendering for dietary services - Petitioner participated, qualified as lowest bidder but tender was cancelled for perceived lack of competition - Court noted that tender committee failed to provide reasons for decision and did not act transparently under applicable laws - Quashed the decision to issue fresh tender and directed completion of original tender process. (Paras 60 to 62)

(B) Administrate Actions - Judicial Review - Public authorities must ensure transparency and fairness in decision-making in tender processes - Actions failing to adhere to procedural norms can be challenged as arbitrary and unreasonable - The government’s right to refuse a tender is subject to adherence to provisions of law. (Paras 37 to 43)

Facts of the case:
The petitioner, a registered contractor, challenged the cancellation of a tender process for dietary services at a hospital after he was qualified as the lowest bidder. Despite being found qualified, the procurement authorities initiated a fresh tender citing insufficient competition. (Paras 2 to 6)

Findings of Court:
The court held the cancellation was arbitrary, highlighting a lack of communication of reasons and failure to comply with the Procurement Act’s requirements. It directed the completion of the initial tender process. (Paras 58 to 62)

Issues: Whether the fresh tender was justified given the petitioner was the lowest bidder and whether sufficient reasons were provided for the cancellation of the previous tenders. (Paras 36 and 46)

Ratio Decidendi: The court reiterated the importance of transparency and adherence to statutory requirements in public procurement decisions, emphasizing that the process must be fair and accountable. (Paras 37 to 43)

Result: Writ petition allowed; tender cancellation and fresh tender decision quashed. Authorities directed to finalize the third e-Tender process. (Paras 61 and 62)

Table of Content
1. factual background of tender process. (Para 2 , 3 , 4 , 5 , 6)
2. arguments regarding arbitrariness in tender process. (Para 7 , 8 , 9 , 10 , 11 , 12 , 13 , 14)
3. court's observations on the decision-making process. (Para 15 , 18 , 19 , 20 , 21 , 22 , 23 , 24 , 25 , 26 , 27 , 28 , 29 , 30 , 31 , 32 , 33 , 35 , 36 , 37 , 39 , 41 , 42 , 43 , 44 , 45 , 46 , 47 , 48 , 49 , 50 , 51 , 52 , 53 , 54 , 55 , 56 , 57 , 58)
4. conclusion directing finalization of third tender. (Para 60 , 61 , 62 , 63)

JUDGMENT :

Heard Mr. S. Sarma, learned senior counsel assisted by Mr. A. Gautam, learned counsel appearing for the petitioner. Also heard Mr. B. Gogoi, learned Additional Advocate General appearing for the State respondent.

2. By way of this petition under Article 226 of the Constitution of India, the petitioner is assailing the notice inviting for re-tender (e-Tender) No.MCH/2024/948 dated 09.01.2024 for providing annual job contract of Dietary Service to the patient admitted to Assam Medical College Hospital, Dibrugarh issued by the Superintendent, Assam Medical College Hospital, Dibrugarh.

3. The brief facts of the case are that pursuant to a notice inviting for e-Tender through the e-Procurement system for providing an annual job contract for dietary service to the patient admitted to Assam Medical College Hospital, Dibrugarh, bearing No. MCH/2023/25858 dated 03.10.2023 (hereinafter referred to as the first tender), issued by the respondent Nos. 4 and 5, the petitioner, who is a government-registered 1st Class Contractor and Supplier, along with two other bidders, participated in the said tender. Though, in the technical bid, the petitioner qualified; however, the financial bid of the petitioner was not opened.

4. It is the specific case of the petitioner that thereafter, by notice inviting for re-tender (e-tender) through the e-Procurement system for providing the same services as that of the first tender to the patient admitted to Assam Medical College Hospital, Dibrugarh, bearing No. MCH/2023/29988 dated 16.11.2023, was issued by the respondent Nos. 4 and 5 (hereinafter referred to as the second re-tender). In the said tender process, four bidders, including the petitioner and proforma respondent No.7, participated; however, the technical bids of all the bidders were rejected. Accordingly, for the third time, another notice inviting for a re-tender (e-tender) through the e- Procurement system for providing the same service as that the first tender and second re-tender were issued by the respondent Nos.4 and 5 vide No. MCH/2024/948 dated 09.01.2024 (hereinafter referred to as the impugned third tender).

5. It is the specific case of the petitioner that, having noted the aforesaid advertisement in the newspaper on 10.01.2024, the petitioner participated in the said tender process. The proforma respondent No.7 also participated along with the petitioner. Thereafter, the technical bids of the two bidders were opened, and upon being duly qualified, their financial bids were also opened. However, though the petitioner was found to be the lowest bidder, notice inviting tenders for the same services as that of the first tender, second re-tender, and the third impugned re-tenders were issued in the portal of Government e-Market (hereinafter referred to as the GeM) by Bid Document No. GEM/2024/B/4755482 dated 08.03.2024.

6. Aggrieved by the aforesaid issuance of a fresh tender against the same services for which the petitioner had been duly qualified as the lowest tenderer, the present writ petition has been filed.

7. Mr. S. Sarma, learned senior counsel appearing for the petitioner, submits that the manner in which the tender for the subject work has been re-tendered one after the other despite there being participants and qualified technical bids itself goes to show the arbitrariness involved in the decision making process. He further submits that though the petitioner in the third re-tender was the lowest tenderer, the authorities,
























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