2016 Supreme(HP) 2005
IN THE HIGH COURT OF HIMACHAL PRADESH AT SHIMLA
Tarlok Singh Chauhan & Sandeep Sharma, JJ.
Krishna Sanitation Society Jatroon – Petitioner
Versus
State of Himachal Pradesh and Another – Respondents
CWP No. 2642 of 2016
Decided On : 09-12-2016
For the Petitioner: Mr. Nipun Sharma.
For the Respondents: Mr. Rupinder Singh Thakur, Mr. Varun Chandel and Mr. Anup Rattan.
The government has the right to cancel tenders without assigning reasons, and the court's power of judicial review in contractual matters is limited to cases of mala-fides, arbitrariness, or public interest impact.
Headnote:
TENDER CANCELLATION - SANITATION WORK - Societies Registration Act, 2006 - [Societies Registration Act, 2006] - [Article 226 of the Constitution of India] - [Short Tender Notice] - [Cleanliness of Town for 2016-17] - [State of Jharkhand vs. M/s. CWESOMA Consortium, AIR 2016 SCW 3366] - [Bakshi Security & Personnel Services Pvt. Ltd. vs. Devkishan Computed Pvt. Ltd., AIR 2016 SCW 3385] - [Central Coalfields Limited vs. SLL-SML (Joint Venture Consortium), AIR 2016 SCW 3814] - [Tata Cellular vs. Union of India, 1994) 6 SCC 651] - [Jagdish Mandal vs. State of Orissa and Others, 2007) 14 SCC 517]
Fact of the Case:
The petitioner-society applied for sanitation work and was found to be the lowest bidder. However, the respondents canceled the tender on administrative and technical grounds, leading to the petitioner's grievance and subsequent legal action.
Finding of the Court:
The court found that the cancellation of the tender was justified as the petitioner failed to submit the required experience certificate for sanitation work as per the tender notice. The court also emphasized the right of the government to cancel tenders without assigning reasons and upheld the decision as being in the larger public interest.
Issues: The main issue was the validity of the tender cancellation and the petitioner's claim for relief based on being the lowest bidder.
Ratio Decidendi: The court held that the cancellation of the tender was lawful and in the larger public interest, as none of the bidders, including the petitioner, fulfilled the tender conditions. The court also emphasized the right of the government to cancel tenders without assigning reasons and the limitations of judicial review in contractual matters.
Final Decision: The court dismissed the writ petition and pending applications, upholding the cancellation of the tender and emphasizing the larger public interest.
Sandeep Sharma, J.
1. Instant petition under Article 226 of the Constitution of India has been filed seeking following main reliefs:
"(i) That the impugned order dated 26.9.2016 may kindly be quashed and set-aside.
(ii) That the respondents may kindly be directed to issue award letter in favour of the petitioner within time bound period as he fulfill all the conditions including the experience certificate as one the condition.
(iii) That the respondents may kindly be restrained from inviting fresh tender in the matter."
2. Briefly stated the facts of the case are that the petitioner-society i.e. Krishna Sanitation Society Jatroon, which is registered under Societies Registration Act, 2006, pursuant to Short Tender Notice (Annexure P-2) issued by the Secretary, Nagar Panchayat, Chowari, submitted its tender for the following works:-
S. No.
Name of Work
Man Power Required
Earnest Money
Time Limits
1.
Cleanliness area Ward No-01 Sudali Chownk to Hanuman Chownk, Hanuman Chownk to Puran Chand Secretary House, Hanuman Chownk to Referral Hospital Chowari, Main Nazar alongwith All Drains and Roads.
Ward No-05:- Sadwan Raipur Road to Senior Secondary School.
Ward No-07:-Sh. Surnder Sharma Shop to Saran Dass Verma House, Vidya Sagar Shop to Mahila Mandal, Chharmari area. Ward No-06:-Complete Ward.
The Drains/Path and Street of above said wards alongwith Loading and unloading of Garbage.
Rehan Basera and Office Building
10 Nos. + 01 Supervisor
22000-00
One year
2.
Door to Door Garbage collection in Ward No-01 and Ward No-07
02 Nos.
5000-00
One year
3. Petitioner claimed that its tender being the lowest was accepted by the respondents on 29.6.2016 and as such it was expecting that award letter would be issued to it immediately, but when it was not issued, petitioner made inquiries from the respondents. On inquiry, petitioner was informed that one M/s J.S. Constructions had filed a complaint to the respondents (Annexure P- 4) alleging therein that the tender submitted by the, Krishan Pal Singh, President of the petitioner-Society was faulty because the experience certificate submitted by it prima facie appeared to be fictitious and as such work in terms of Short Tender Notice could not be awarded to the petitioner-Society. In the complaint, complainant alleged that Sulabh International had actually issued certificate of experience of work till 2008 but there is over-writing. Similarly, complainant alleged that there is contradiction in the PAN card and experience certificate having been furnished by the petitioner society. On the basis of aforesaid complaint, respondents decided not to award work in favour of the petitioner-society. Petitioner being aggrieved of the aforesaid action of not awarding tender in its favour, despite its being lowest bidder approached this Court by way of CWP No. 2492 of 2016, which came to be listed before this Court on 26.9.2016. This Court, on the basis of averments contained in the petition, directed the respondents to seek instructions on 27.9.2016. On 27.9.2016, this Court was informed that the respondents have already passed order dated 26.9.2016 (Annexure P-6), whereby decision has been taken to cancel the tenders on administrative and technical grounds. Perusal of letter dated 26.9.2016 further suggests that decision was taken to invite tender through e-tendering process in terms of instructions issued by the Government. In view of aforesaid, petitioner sought permission to withdraw the petition with liberty to file afresh laying therein challenge to order dated 26.9.2016. In the aforesaid background, present petitioner approached this Court by way of present petition, praying therein for the reliefs as reproduced above.
4. Mr. Nipun Shar