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2025 Supreme(HP) 1106

IN THE HIGH COURT OF HIMACHAL PRADESH SHIMLA
TARLOK SINGH CHAUHAN, SUSHIL KUKREJA, JJ.
 
Pradeep Singh - Petitioner 
Versus 
State of Himachal Pradesh & ors. – Respondents
CWP No. 2236 of 2025
Decided On : 30-05-2025
 

Advocates Appeared:
For the Petitioner:Mr. Kush Sharma, Mr. Sunil Dutt Gautam & Mr. Ankit Dhiman, Advocates.
For the Respondents: Mr. Anup Rattan, A.G. with Mr. I. N. Mehta, Sr. Addl. A.G., Mr.Ramakant Sharma, Mr. Navlesh Verma, Ms. Sharmila Patial, Mr. Sushant Kaprate, Addl. A.Gs., Mr. J. S. Guleria and Mr. Raj Negi, Dy.A.Gs.

An administrative authority must provide reasons for decisions, particularly when reversing a prior decision, to ensure transparency and prevent arbitrariness, which constitutes a violation of judicial fairness.

Headnote:(A) Constitutional Law - Judicial Review - The Right to Reason - The cancellation of tender process and subsequent issuance of a fresh tender was quashed due to the failure of the authority to provide reasons for their decision, in violation of principles ensuring transparency and fairness in administrative actions - The court underscored that reasons are essential for just administration and must be provided to avoid arbitrary decisions (Paras 3, 6, 8, 10, 12, 14).

(B) Administrative Law - Tender Process - The action of the State Authorities in cancelling a tender without providing explicit reasons was found to be unsustainable as it impedes the right to judicial review and justice, reinforcing the principle that every decision must be justified and transparent (Paras 6, 8, 10, 18, 23).

Facts of the case:
The petitioner contended that the cancellation of the tender process for the construction of B.O. quarters and the introduction of a new tender was arbitrary and unjustified, as he was the lowest bidder in the previous process (Paras 3, 4).

Findings of Court:
The cancellation and new tender issuance lacked proper justification; therefore, the petitioner was entitled to have the original tender process reinstated and taken to completion (Paras 23).

Issues: Whether the cancellation of the tender process without reasons violates principles of administrative justice and the petitioner’s rights.

Ratio Decidendi: The court held that an authority must provide reasons for its decisions; failure to do so renders the order arbitrary and violates the principles of natural justice, as established in various Supreme Court precedents (Paras 6, 10, 12, 14).

Result: Petition allowed; the impugned office order and fresh tender quashed.

JUDGMENT :

Tarlok Singh Chauhan, J.

The instant petition has been filed for grant of the following substantive reliefs:

1) That a writ in the nature of certiorari may kindly be issued to quash and set-aside arbitrary cancellation of tender process vide impugned office order dated 31.01.2025 (Annexure P-4) and fresh tender for the same work vide impunged NIT dated 31.01.2025 published on 01.02.2025 (Annexure P-5) may also be quashed and set-aside.

(II) That a writ in nature of madamus may kindly be issued to the Respondents to restored the tender process initiated vide tender notice dated 16.07.2024 for "C/o BO Quarters at Wasni under Forest Division Rajgarh Tehsil Rajgarh, District Sirmour, H.P." bearing (Tender-ID: 2024_HPIPH_90417_1) and further to take the same to its logical end.

2 The instant petition came up for hearing on 14.2.2025 and the learned Vacation Judge passed the following order:-

CWP No.2236 of 2025 Heard.

Notice. Mr. Amandeep Sharma, Learned Additional Advocate General, appears and waives service of notice on behalf of respondent Nos.1 to 3. As prayed for by Learned Additional Advocate General, the reply be filed within four weeks.

CMP No.2108 of 2025 Heard. Notice in aforesaid terms.

2. Instant application has been filed for interim directions, for restraining the Respondents, from proceeding further with the Fresh Notice Inviting E-Tender dated 30.01.2025 [Annexure P-5].

3. Upon considering the material on record this Court is of the considered view, that the claim for seeking Fresh Notice Inviting E-Tender [NIET] dated 30.01.2025 [Annexure P-5], cannot be acceded to, for the reason, that firstly, in terms of Notice Inviting E-Tender, the Respondents invited Online bids w.e.f. 30.01.2025 [05:00 PM] up to 07.02.2025 [9:00 AM] and admittedly, in response to fresh tender notice the petitioner neither participated nor furnished his bid, for the reasons known to him; and secondly, in furtherance of Fresh Notice Inviting E-Tender dated 30.01.2025 [Annexure P-5] even the Technical Bids [for ensuring eligibility criteria] and Financial Bid, which was scheduled to be opened on 07.02.2025 stands opened [as disclosed by Learned State Counsel to this Court]; thirdly, once the petitioner has chosen not to participate in tendering process in pursuance to the Fresh Notices Inviting E Tender dated 30.01.2025 [Annexure P-5] and the fact that the petitioner has not revealed any arbitrariness, malafide, biasness or irrationality in inviting Fresh Bids coupled with the fact that restraining respondents shall cause unnecessary loss to State Exchequer and delay in execution of tendered work(s) therefore, the pray for interim is not tenable;

and fourthly; even the cancellation of Earlier Tendering Process dated 16.07.2024 on 30.1.2025 [Annexure P-4] due to technical reasons/grounds does not violate any right of the applicant-petitioner, as the right in commercial matters [Tenders-NIET] fructifies, after the proposal in NIT is accepted and such acceptance culminates into a contract either by Issuance of a Letter of Intent or Execution of an Agreement for Commencement of Work [as the case may be], which has not been fructified in favour of petitioner as on the date of cancellation of Earlier Tender on 30.01.2025 [Annexure P-4] and even on date of issuance of Fresh Notice Inviting E-Tender dated 30.01.2025 [Annexure P-5]; and fifthly, the action of State Authorities in rejecting the Earlier Tender dated 16.7.2024 on 30.1.2025 [Annexure P-4] is bonafide and in public interest therefore, in facts of this case, as available at this stage, no claim for staying Fresh Notice Inviting E Tender dated 30.01.2025 (Annexure P-5) is made out in view of the mandate of the Hon’ble Supreme Court in Jagdish Mandal versus State of Orissa and others (2007) 14 SCC 517, which stands affirmed by Hon’ble Three Judges in Tata Motors Ltd. versus The Brihan Mumbai Electric Supply and Transport Undertaking (BEST) and others, Civil Appeal No. 3897 of 2023, decided on

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