IN THE HIGH COURT OF JAMMU AND KASHMIR AT SRINAGAR
ALI MOHAMMAD MAGREY, J.
Abdul Samad Wani & Ors. - Petitioners
Versus
Union Territory of Jammu and Kashmir & Ors. - Respondents
WP(C) No.1036 of 2021, CM Nos. 3415 of 2021 & 3416 of 2021
Decided On : 31-05-2021
Tendering Process - E-NIT No. 35/PHEQ of 2020-21 - [Tata Cellular v. Union of India (1994) 6 SCC 651, Sterling Computers Limited v. M&N Publications Ltd. (1993) 1 SCC 445, Directorate of Education & Ors. v. Educomp Datamatics Ltd. And Ors. (2004) 4 SCC 19, Jagdish Mandal v. State of Orissa (2007) 14 SCC 517] - The court upheld the decision of the Respondent-Department in allotting the works to the lowest bidder, Respondent No.5, as it found the decision to be rational and not intended to favor anyone. The court emphasized the need for judicial restraint in interfering with administrative actions, particularly in tender or contract matters, and highlighted the principles of administrative decision-making and the limited scope of judicial review in such cases.
Fact of the Case:
The Petitioners, registered Contractors with the Respondent Department, challenged the vires of the decision to allot works to Respondent No.5 through a Writ Petition under Article 226 of the Constitution of India. The Petitioners alleged that the decision was a result of a colorable exercise of power and smacked of illegalities and malafides.
Finding of the Court:
The court found that the decision of the Respondent-Department in allotting the works to Respondent No.5 was rational and not intended to favor anyone. It emphasized the need for judicial restraint in interfering with administrative actions, particularly in tender or contract matters.
Issues: The issues revolved around the legality and rationality of the decision to allot works to Respondent No.5, the scope of judicial review in tender or contract matters, and the principles governing administrative decision-making in such cases.
Ratio Decidendi: The court's decision was based on the principles of administrative decision-making, limited scope of judicial review in tender or contract matters, and the need for judicial restraint in interfering with administrative actions.
Final Decision: The Petition was dismissed as the court found no merit in the challenge to the decision of the Respondent-Department in allotting the works to Respondent No.5.
ORDER :
1. The Petitioners claim to be registered Contractors with the Respondent Department. In terms of e-NIT No. 35/PHEQ of 2020-21 dated 15th of February, 2021, the Respondent-Department invited e-enters for execution of various works detailed out in the tender notice. The tender notice, as stated, prescribed 2nd of March, 2021 as the last date for submission of bids and 3rd of March, 2021 as the time of opening of technical bids. In response to the aforesaid tender notice, the Petitioners, besides other eligible Contractors, are stated to have submitted their tenders/ bids along with all requisite documents before the Respondent-Department. It is pleaded that the tender documents of the Petitioners were complete in all respects and that the Petitioners were, thus expecting positive results therefrom. Thereafter, the technical bids were opened by the Respondent-Department, wherein, as stated, the tender documents of the Petitioners were found responsive and the process was initiated by the Respondent-Department for opening of financial bids. However, the Petitioner No.2 is stated to have filed a complaint before the Respondent No.4 with regard to the eligibility of the Respondent No.5, as a consequence whereof, a Committee was constituted vide Order dated 12th of April, 2021 and the process of allotment deferred. The Committee, on 26th of April, 2021, submitted report whereby the Respondent No.5 was held eligible to partake in the tendering process pursuant to the e-NIT in question. Subsequently, on 27th of April, 2021, the Respondent No.5 was, upon opening of financial bids, declared L1 and allotted the works put to tender in terms of e-NIT dated 15th of February, 2021. Feeling aggrieved of the report of the Committee constituted by the Respondent-Department qua eligibility of Respondent No.5 as well as the subsequent decision of the Respondent-Department to allot the works to Respondent No.5, the Petitioners have challenged the vires of the same through the medium of the instant Writ Petition before this Court under Article 226 of the Constitution of India.
2. Mr. Altaf Mehraj, the learned counsel for the Petitioners, submitted that the report/ decision of the Committee constituted by the Respondent-Department; whereby the Respondent No.4 has been found eligible to participate in the tendering process and the subsequent allotment of works in favour of the Respondent No.5 pursuant to E-tender notice No.35/PHEQ of 2020-21 is result of colorable exercise of power on part of the Respondent-Department. It is submitted that the Petitioner No.2 had raised an extremely important issue of ineligibility of Respondent No.5 qua non-submission of requisite documents by the Respondent No.5 in tune with the terms and conditions of the tender notice in question, however, the same was not taken into consideration by the Committee constituted by the Respondent-Department for the purpose. It is pleaded that the impugned action of the Respondent-Department smacks of illegalities and malafides and, thus same deserves to be set at naught.
3. Heard the learned counsel for the Petitioners, perused the pleadings on record and considered the matter.
4. Admittedly, on the complaint of the Petitioner No.2 qua non-submission of requisite documents by the Respondent No.5 along with his tender document, the Respondent-Department constituted a Committee for the purpose prior to issuance of the final allotment order(s). The Committee, in its report, was of the opinion that the Respondent No.5/ L1 has placed on record all the requisite/ main documents in support of his bids and that the same are responsive. It was on the basis of such position that the Committee recommended the allotment of works in favour of the Respondent No.5/ L1. Once the Committee so constituted by the Respondent-Department in the matter of ascertaining the veracity of the complaint filed by the Petitioner No.2 against the eligibility of Respondent No.5 reported that the Respondent No.5
Tata Cellular v. Union of India
Sterling Computers Limited v. M&N Publications Ltd.
Directorate of Education & Ors. v. Educomp Datamatics Ltd. And Ors.
The main legal point established in the judgment is the need for judicial restraint in interfering with administrative actions, particularly in tender or contract matters, and the limited scope of ju....
public authorities must be left with the same liberty as they have in framing the policies - Contracts are legally binding commitments and they commit the authority which may be held to be a State wi....
Point of Law : Tender - Non-completion of contract - Courts would interfere with administrative policy decision only if it is arbitrary, discriminatory, malafide or actuated by bias. It is entitled t....
The Court highlighted the importance of fair play, reasonableness, and public interest in awarding contracts, and cautioned against unnecessary interference in commercial matters.
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