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2019 Supreme(HP) 1167

IN THE HIGH COURT OF HIMACHAL PRADESH AT SHIMLA
L. Narayana Swamy, Jyotsna Rewal Dua, JJ.
Shashi Dogra and others - Petitioners
Versus
Himachal Road Transport Corporation and others - Respondents
CWP No. 4286 of 2019
Decided On : 19-12-2019

Advocate Appeared:
For the Petitioner:Mr. Bhuvnesh Sharma and Mr. Dinesh K. Thakur, Advocates.
For the Respondent:Mr. Vikas Rajput, Advocate, Mr. Malay Kaushal, Advocate

Public interest prevails over private interest in matters of tender notification and auction processes.

Headnote:

Tender Notification - Possession of Shops - The court dismissed the writ petition seeking possession of shops as the respondents decided to cancel the tender notification for the shops at the first floor and go for a fresh tender-cum-open auction, prioritizing public interest over private interest.

Fact of the Case:

The petitioners participated in a tender/auction process for the allotment of shops at a bus stand, and their bid was accepted. However, the respondents did not hand over the possession of the shops to the petitioners as per the agreement.

Finding of the Court:

The court dismissed the writ petition and canceled the tender notification for the shops at the first floor, directing the respondents to return the amount paid by the petitioners towards the license fee.

Issues: Dispute over possession of shops and cancellation of tender notification.

Ratio Decidendi: Public interest prevails over private interest, and the cancellation of the tender notification for the shops at the first floor was justified.

Final Decision: The writ petition was dismissed, the tender notification for the shops at the first floor was canceled, and the respondents were directed to return the amount paid by the petitioners towards the license fee.

JUDGMENT :

L. Narayana Swamy, J.

The case of the petitioners is that in September, 2019, respondent No. 5 issued a tender notification (Annexure P1) for allotment of 14 shops/stalls at Bus Stand, Rohru for a period of 33 months. The petitioners, on fulfillment of the terms and conditions of the tender notification, participated in the tender/auction process. Petitioners being the highest bidders, their bid was accepted and they were directed to pay 11 months' license fee in advance, which has been paid by the petitioners, but, till date, the respondents have not handed over the possession of the shops to the petitioners in execution of the agreement. Hence, the instant writ petition has been filed seeking a direction to respondents No. 3 to 5 to hand over the possession of shops No. 4, 5, 6 and 7 to the petitioners as the same have been allotted to them pursuant to their participation as per the terms and conditions of the tender process dated 23rd September, 2019.

2. After issuance of notice, the respondents have entered appearance. Learned counsel appearing on behalf of respondents No. 4 and 5, though, admits floating of the tender notification by respondents No. 4 and 5 and also the submission of applications by the petitioners, but, on the basis of communication, dated 2nd November, 2019, made by General Manager, H.P. Bus Stand Management and Development Authority, Shimla to the Regional Manager, Himachal Road Transport Corporation, Rohru, submits that with a scope to get more tender offers in open public auction, a decision has been taken by the respondent-Authorities to go for a fresh tender-cum-open auction with respect to all the shops in the first floor as the tender auction pursuant to Annexure P1 could not fetch suitable price for the shops in the first floor.

3. We have heard learned counsel for the parties and have perused the record.

4. It is true that respondents No. 4 and 5 have floated the tender notification (Annexure P1), in pursuance whereof the petitioners participated in the tender auction process and being the highest bidders, after acceptance of their tender applications, they have paid 11 months' advance license fee to respondents No. 4 and 5. The same, though, has been acknowledged, but, that cannot exactly confer any right on the petitioners to seek execution of the agreement in their favour, that too, when, as is submitted by learned counsel for respondents No. 4 and 5, the said respondents had made efforts to return the license fee paid by the petitioners.

5. It would be profitable to extract the relevant portion of communication, dated 2nd November, 2019, made by General Manager, H.P. Bus Stand Management and Development Authority, Shimla to the Regional Manager, Himachal Road Transport Corporation, Rohru, herein:

“The matter has been examined by the competent authority and observed that sufficient bids have not been received in tender auction, there was a scope to get more rent offers in open public auction but the same could not be held due to scene created by the bidders as recommended by the committee. Hence, the recommendation of the committee for all the shops in first floor (Shop No. 2 to 8) is hereby rejected.

You are, therefore, advised to go for fresh tender-cum-open auction as soon as possible under intimation to this office.”

6. As is discernible from the communication quoted hereinabove, the respondents have decided to go for a fresh tender-cum-open auction in respect of all the shops in the first floor on the ground that the shops in the first floor can fetch more rent amount and what has been offered by the petitioners is at lower side. The object of cancellation of tender notification in respect of the shops at first floor appears to be genuine since the open public auction can prove more beneficial to respondents No. 4 and 5.

7. We may usefully call 'public interest' will prevail over 'private interest' on the principle of legal maxim "Salus Populi est Suprema lex" which means to say "Publ

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