The decision of the Tender Evaluation Committee to proceed with the second attempt of auction process, as per Rule 9(12), should prevail over the decision for a de novo auction process, as it is in accordance with the statutory provision.

JUDGMENT :

Sujit Narayan Prasad, J.

The instant intra-court appeal, under Clause 10 of the Letters Patent, is directed against the order/judgment dated 22.04.2022, passed by learned Single Judge in W.P.(C) No. 5152 of 2021 whereby and whereunder the writ petition was dismissed refusing to pass any positive direction in favour of writ petition, wherein direction was sought for upon the State Government to proceed with the second round of auction in accordance with the Mineral (Auction) Rules, 2015 (hereinafter referred to as “Rules, 2015”) as amended by Mineral Auction Amendment Rules, 2017 (hereinafter referred to as “Rules, 2017”).

2. The brief facts of the case, as per pleadings made in the writ petition, which are required to be enumerated, read as hereunder:

The State of Jharkhand has come out with Notice Inviting Tender (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 Blocks having concession area of 75.193 hectares fixing the last date of sale of tender document on 18.11.2019 and date of opening of tender on 17.12.2019. The petitioner no. 1 purchased the tender document on 08.11.2019 at the cost of Rs.4,95,600/-.

It is the case of the writ petitioner that in terms of tender document, the upfront payment of Rs.8.16 crores was payable by the successful bidder as pre-bid security and further in terms of eligibility, the company had to have the net worth of more than Rs. 32.64 crores, which the petitioner no. 1 had duly met.

As per terms of the NIT, in particular Clause 8, which is akin to Rule 10 of the Rules, 2015, the auction was to take place in two rounds. The first round of E-auction, which consists of technical bid and initial price bid, was to be submitted on or before 16.12.2019. The second round of auction was thereafter to be conducted on 20.01.2020. Further, in terms of the said tender document, the reserve bid was fixed at 10% of the mineral dispatched. Subsequently, the petitioner-company submitted its bid letter on 13.12.2019 expressing its interest in the said blocks, which was duly acknowledged by MSTC Ltd, the auction conducting agency, through e-mail on 16.12.2019.

However, after first round of auction, the State Government vide notice dated 27.01.2020 decided to annul the first attempt of auction for granting of mining lease of the aforesaid Bauxite Block on the ground that there were less than three bidders, who had submitted their bid showing interest in the blocks in question, as such in terms of Rule 9 (9) of the Rules, 2015, which provides that in the first attempt of auction, the second round of auction commences only when the total number of technical qualified bidders is three or more.

The State Government thereafter started the second attempt of auction in terms of Rule 9(11)(b) of the Rules, 2015, whereby the State Government had the option to conduct the process de novo i.e. with fresh terms and conditions or try a second attempt with the same terms and conditions as the previous NIT had. The State opted for the second option under Rule 9(11) of the Rules, 2015.

Accordingly, the State Government issued Notice Inviting Tender dated 28.01.2020 inviting bid for grant of mining lease for the said block, for which, the petitioner-company again expressed its desire and once again purchased the tender documents on 10.02.2020. Thereafter, submitted the bid letter on 09.03.2020 alongwith required bank guarantee as bid security in favour of State, before due date i.e., 13.03.2020. However, due to break-out of Covid-19 pandemic in the country and consequential Lockdown orders passed by the Central Government, the State Government vide corrigendum dated 25.03.2020 informed the bidders that the auction of the mineral blocks in question is kept in abeyance till further orders. However, after some relaxation in Lockdown, the State Government came out with modified schedule, whereby announcement of technically qualified bidders was s