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2025 Supreme(Gau) 937

IN THE HIGH COURT OF GAUHATI, ASSAM, NAGALAND, MIZORAM AND ARUNACHAL PRADESH 
SANJAY KUMAR MEDHI, J.
M/s D and G Construction - Appellant
Versus
The qers - Respondents 
W.P. (C) No. 48 of 2025
Decided On : 23-05-2025

Advocates:
Advocate Appeared:
For the Appellants : P.K. Tiwari, L. Sangtam, K. Kalita
For the Respondents: Lissing Perme, D. Das, Dicky Panging, Kirmar Ado, Doge Lona, Marge Doji, Daina Tamuk

The court emphasized adherence to procedural guidelines in tender processes, ruling that decisions must comply with established legal standards to prevent arbitrariness.

Headnote:(A) Constitution of India - Article 226 - Tender process - Challenge to allotment of electrification work - Petitioner contends allotment to respondent was illegal and arbitrary, contravening public interest. The memorandum dated 18.09.2023 was crucial in determining justified bid prices and was improperly disregarded. (Paras 1, 10, 27, 36)

(B) Administrative Law - Judicial Review - The power of judicial review in contractual matters assesses the lawfulness of actions, not their soundness, ensuring compliance with procedural norms. (Paras 22, 36)

Facts of the case:
The petitioner contested the legality of the tender decision where respondent No. 9's bid, initially rejected for being abnormally low, was later accepted after a Sub-Committee's review, raising issues of transparency and adherence to prior memorandum guidelines. (Paras 2, 5, 12)

Findings of Court:
The court found the actions of forming a Sub-Committee and accepting a previously rejected bid were unlawful, violating established guidelines. The impugned Letter of Intent was set aside. (Paras 38, 39)

Issues: Main issues included whether the formation of the Sub-Committee was legally justified and whether the Memorandum's guidelines were adhered to in the tender process. (Paras 31, 36)

Ratio Decidendi: The court ruled that legal compliance is paramount in administrative decisions regarding tender processes, emphasizing the binding nature of earlier guidelines. The court rejected the notion that the Sub-Committee's findings could override statutory requirements. (Paras 27, 34)

Result: Writ petition allowed; impugned order quashed and remanded for lawful action within 45 days.

Table of Content
1. jurisdiction invoked for illegal tender allotment. (Para 1 , 2)
2. whether the tender process adhered to the memorandum guidelines. (Para 3)
3. bidders' evaluations and re-evaluations. (Para 4 , 5 , 12 , 13)
4. details regarding the bids and process prior to acceptance of recommendations. (Para 6 , 28 , 30)
5. petitioner's arguments on strict adherence to guidelines. (Para 10 , 20 , 21)
6. judicial interpretation regarding the binding nature of procedural guidelines. (Para 14 , 15 , 29)
7. determination of the absence of legal basis for actions. (Para 26 , 27)
8. role of the sub-committee in the tender decision-making process. (Para 35)
9. court's judgment invalidates previous tender decisions. (Para 36 , 38)
10. final ruling regarding the quashing of the letter of intent. (Para 37)
11. order for prompt allotment of work as per law. (Para 39 , 40)

JUDGMENT :

SANJAY KUMAR MEDHI, J.

1. The extraordinary jurisdiction conferred to this Court under Article 226 of the Constitution of India is sought to be invoked by means of this petition, whereby, a challenge has been made to the decision to allot a particular work to the Respondent No. 9 in a tender process. The petitioner has alleged that such allotment, apart from being grossly illegal and arbitrary, is also wholly opposed to the interest of public service.

2. As per the facts projected in the petition, a Notice-Inviting Tender was floated by the Superintending Engineer, Electrical, Department of Power, Pasighat, for electrification work in East Siang District. The name of the work in the said NIT, dated 17.01.2024 was “Development of Distribution Infrastructure in East Siang District of Arunachal Pradesh under the Revamped Reforms-Based and Results-linked, Distribution Sector Scheme”. The petitioner, which claims itself to be eligible in all respects, had procured the Standard Bidding Document and had participated its bid. On 25.01.2024, a Pre-Bid meeting was held in the office chamber of the Superintending Engineer, Electrical, Department of Power, Pasighat, wherein, the representatives of all the prospective bidders were present. In the said meeting, it was decided to consider justified range as per the Memorandum, dated 18.09.2023, while evaluating price bids in conformity with Clause 36 of the Standard Bidding Document.

3. The petitioner has brought on record the Memorandum, dated 18.09.2023, issued by the Department of Power of the State, whereby, guidelines were laid down, which were to be followed by the said Department in the matter of tender, evaluation and award. For ready reference, the relevant clause of the said Memorandum is extracted herein below:

“4. Justified bid price ranges category-wise: To weed out unrealistically very low and excessively high and obstructive biddings, the justified ranges of bid prices of materials and works as determined for respective category-wise areas shall have to be adopted and adhered to in the bid evaluation processes of tenders, and the contract award thereof for execution in the Department of Power, as contained in the following respective annexures:

a. Category-I at Annexure-I

i. …

ii. …

….

v. Pasighat Electrical Division ….’

‘5. Validity of Justified Bid Price Ranges: The Justified Bid Price Ranges provided herein as above shall be valid for the bids of the tenders floated and processed for award during the Current Financial Year, i.e., 2023-24.’

….”

4. It is the case of the petitioner that 7 (seven) numbers of bidders had initially submitted their bids and 3 (three) could qualify in the Techno- Commercial Evaluation, including the petitioner and the respondent No. 9. It may be mentioned that one, M/s Techno Power Enterprises was the third bidder. The price bids of the technically responsive 3 (three) bidders were opened on 21.02.2024 and the price bid of the respondent No. 9 was rejected being abnormally low and the bid of M/s Techno Power Enterprises was declared as L-1. The Office of the Superintending Engineer had, thereafter,

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