The court upheld the State's authority to cancel and reissue NITs to ensure competitive bidding, as long as the decision-making process is not mala-fide or arbitrary.

JUDGMENT :

RAJESH SHANKAR, J.

1. Both these writ petitions have been filed for issuance of direction upon the State Government to proceed with the second round of auction in accordance with the Mineral (Auction) Rules, 2015 (hereinafter to be referred as ‘the Rules 2015’) as amended by Mineral (Auction) Amendment Rules, 2017 (hereinafter to be referred as ‘the Rules 2017’).

W.P. (C) No. 5069 of 2021:

2. The brief facts as stated in the writ petition is that the State of Jharkhand issued Notice Inviting Tender (in short ‘NIT’) on 30.10.2019 inviting bids in order to carry out e-auction for granting mining lease of Dudhapat Toli, Nathpur, Salgi and Chulhamati Bauxite Block having concession area of 322.859 acres in which the last date for sale of tender documents was fixed as 18.11.2019. Pursuant to the issuance of tender document a pre-bid conference of the bidders was held on 03.12.2019 wherein the queries were responded thereto and published by the Government on 10.12.2019. The petitioner no. 1 purchased the tender document on 08.11.2019 and submitted its bid on 13.12.2019, however, subsequent to the first round of auction, the State Government vide notice dated 27.01.2020 decided to annul the process of first attempt of auction for grant of mining lease of the aforesaid block. Thereafter, the State Government vide NIT dated 28.01.2020 invited offers for the said block in which the last of sale of tender documents was fixed as 12.02.2020. The petitioner no. 1 once again expressed its desire and purchased the tender document on 10.02.2020, which was duly submitted on 09.03.2020 along with bank guarantee of Rs. 7,42,32,182/- as bid security in favour of the State. In the meantime, pre-bid conference of the bidders was held on 27.02.2020. Thereafter, due to outbreak of Covid-19 pandemic, the State Government issued a corrigendum dated 25.03.2020 informing the bidders that the auction of the mineral block in question would be kept in abeyance until further notice. The State Government vide letter no. 669 dated 02.06.2020 informed MSTC to upload the corrigendum on its website enclosing revised time table of auction of mining lease of the said block, whereby the date of announcement of the technically qualified bidders was shifted from 07.04.2020 to 15.06.2020 and the date of opening of initial price offer was shifted from 13.04.2020 to 22.06.2020. The electronic auction for final price offer was to be conducted thereafter on 24.06.2020 as opposed to the original date of 16.04.2020. The preferred bidder was to be announced by 24.06.2020 and the subsequent stages were to be followed thereafter. In furtherance of the changed time table, the Director, Mines, Jharkhand, Ranchi vide letter dated 10.06.2020 informed all the concerned authorities that the declaration of the technically qualified bidders would be done on 15.06.2020 for which a meeting of the Tender Evaluation Committee was scheduled to be held on 11.06.2020. Though, as per the time lines provided under the tender document, the E-auction and submission of final price offer were to be conducted on 24.06.2020 however till filing of the writ petition, the said auction was not conducted without assigning any reason thereof.

During the pendency of the present writ petition, the Director Geology, Department of Mines and Geology, Government of Jharkhand vide letter dated 21.01.2022, notified the annulment of NIT dated 28.01.2020 (wrongly typed as 30.10.2019, as claimed by the respondents).

W.P. (C) No. 5152 of 2021:

3. Brief facts as stated in the writ petition is that the State of Jharkhand issued NIT on 25.10.2019 inviting bids in order to carry out e-auction for grant of mining lease of Lodhapat Jobhipat and Hethilodha Bauxite Block having concession area of 75.193 hectares in which the last date of sale of tender documents was 18.11.2019 and last date of opening of tender was fixed as 17.12.2019. Pursuant to issuance of the tender document, a pre-bid conference of the bidders was hel