1978 Supreme(Raj) 62
High Court Of Rajasthan
Judgename : M.L.Shrimal
VIJAY GOODS TRANSPORT CO. - Appellant
Versus
STATE OF RAJASTHAN - Respondent
Civil Writ Petn. 342 Of 1978
Decided On : 05/26/1978
P.K.SHARMA
A tenderer does not acquire an absolute right to obtain a contract merely by filing a tender. The authority inviting tenders reserves the power to accept or reject any tender without assigning any reason.
Headnote:
TENDER - ACCEPTANCE - CONDITIONS - WAIVER - ARTICLE 14 OF THE CONSTITUTION - SCOPE - CONTRACTUAL FIELD - REMEDY - WRIT PETITION - MAINTAINABILITY - DEMAND OF JUSTICE.
Fact of the Case:
Petitioner, a transport company, submitted a tender for transporting stationery goods for the State Central Printing Press. The tender was accompanied by a deposit of Rs. 500/- as earnest money, as required by the tender conditions. However, the tender was rejected in favor of another tenderer, M/s. National Transport Corporation, whose tender was not accompanied by the requisite earnest money deposit.
Finding of the Court:
The court held that the petitioner's tender was not automatically entitled to acceptance simply because it was accompanied by the earnest money deposit. The tender conditions reserved the authority to accept or reject any tender without assigning any reason. The court further held that the alleged breach of the tender conditions did not indicate a violation of legal or public duties or statutory duties, and therefore, the petitioner could not claim a writ of mandamus.
Issues: 1. Whether the petitioner's tender was automatically entitled to acceptance because it was accompanied by the earnest money deposit? 2. Whether the alleged breach of the tender conditions constituted a violation of legal or public duties or statutory duties?
Ratio Decidendi: 1. The court held that the tender conditions reserved the authority to accept or reject any tender without assigning any reason. Therefore, the petitioner's tender was not automatically entitled to acceptance simply because it was accompanied by the earnest money deposit. 2. The court held that the alleged breach of the tender conditions did not indicate a violation of legal or public duties or statutory duties. Therefore, the petitioner could not claim a writ of mandamus.
Final Decision: The court dismissed the writ petition, holding that the petitioner had not established a legal right to enforce the acceptance of its tender.
P. D. KUDAL, J.
( 1 ) THIS is a writ petition filed under Article 226 of the Constitution, by Vijay goods Transport Company through its partner Gopi Chand, praying for issuance of a direction not to take into consideration the tender submitted by respondent no. 4 and to accept the tender of the petitioner authorising him to transport stationery goods from one place to the other.
( 2 ) FROM the petition it appears that tenders relating to transportation of stationery articles by respondent No. 3, were invited. The petitioner as well as other persons including respondent No. 4 submitted their respective tenders for the above purpose which were to be opened by respondent No. 3 on Jan. 13, 1978 at 11 a. m. in the presence of the interested parties. All the conditions under which tenders were to be accepted need not be mentioned except those having a bearing for the decision of this petition. One of the conditions was that no tender which was not accompanied by a deposit of earnest money of Rs. 500/- was to be considered and further another condition was that a tender could be accepted or rejected without assigning any reason and that full authority to do so would vest in the State Central Printing Press. On Jan. 13, 1978, at the schedule time the tenders so submitted were opened and scrutinised. The tender submitted by M/s. National Transport Corporation (respondent No. 4), was accepted as competitively it was the lowest in rate.
( 3 ) THE present petition has been filed to questioning the acceptance of the tender offered by respondent No. 4. The contention is that tenders, submitted by M/s. National Transport Corporation (respondent No. 4) and M/s. Jai Bharat trans port Company, were not in order, as both of them were not accompanied by the requisite deposit of Rs. 500/- each as earnest money, whereas the tenders, submitted by the petitioner M/s. Jaipur Golden Transport Co. (P.) Ltd. , m/s. Vijay Goods Transport Co. and Jai-Shanker Goods Transport Co. , were accompanied by a deposit of Rs. 500/- each as earnest money. The rate quoted by the petitioner was the lowest of all quoted in the valid tenders. Petitioner argues that thus the rate quoted by it was the lowest among the valid tenders. The petitioner further contends that the concern is entitled to a fair treatment equally before the law or the equal treatment of protection of law under Article 14 of the Constitution. He is, therefore, entitled to the grant of a contract for transporting stationery articles. Refusal to the acceptance of the tender of the petitioner infringes the fundamental right of the petitioner conferred by Article 14 of the Constitution. The discrimination or the arbitrariness is writ large on the face of it, justifying interference by this court. Learned counsel places reliance on State of Madhya Pradesh v. Thakur Bharat Singh, AIR 1967 SC 1170, as also on other cases relating to civil services in support of his contention.
( 4 ) I am afraid none of these above contentions is acceptable. No doubt the petitioner claims to have filed a valid tender. But by merely filing a tender, he had not acquired any absolute right to obtain the contract, because under clause 25 of the conditions of tender (Annexure 1) the authority reserved power to accept or reject a lender without assigning any reason. Whether the exercise of that power in the case in hand was correct or not is a matter which can appropriately be decided by a civil court, where evidence can be given and examined at length. Competitive claims in the field of contract are required to be thoroughly investigated and determined on the basis of evidence to be adduced by the parties in a civil suit and the same cannot be conveniently and satisfactorily decided in exercise of extraordinary and discretionary powers under Article 226 of the Constitution. In a summary proceeding it is not possible to record detailed evidence which appear to be necessary for considering the nature of the allegations