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2023 Supreme(Jhk) 1200

IN THE HIGH COURT OF JHARKHAND AT RANCHI
SHREE CHANDRASHEKHAR, RATNAKER BHENGRA, JJ.
M/s. Aastha Constructions, through its Proprietor K.K. Singh - Petitioner
Versus
The State of Jharkhand, through its Secretary, Water Resources and Ors. – Respondents
W.P.(C) No. 47 Of 2023
Decided On : 30-01-2023

Advocates Appeared:
For the Petitioner: Mr. Indrajit Sinha, Adv., Ms. Shruti Shrestha, Adv.
For the Respondents: Mr. Rajiv Ranjan, Mr. Piyush Chitresh, AC to AG, Mr. Ajit Kumar, Sr. Adv., Ms. Aprajita Bhardwaj.

IMPORTANT POINT
The main legal point established in the judgment is the requirement for fairness and reasonableness in administrative decisions, the need to prevent arbitrariness, and the importance of clear norms and standards in the decision-making process.

Headnote:

Tender Cancellation - Administrative Law - Jharkhand Water Resources Contractors Registration Rules, 2018, Rule 6.2 - The court quashed the decision to cancel the tender notices for W1 and W2 and directed the authority to issue a show-cause notice to the petitioner-construction company before proceeding with blacklisting.

Fact of the Case:

M/s Aastha Constructions filed a writ petition challenging the cancellation of tender notices for W1 and W2 and consequent 2nd Call notices. The petitioner was declared L-1 bidder for three works under W1 and both works under W2. The respondent no.6 made a complaint alleging false information by the petitioner-construction company.

Finding of the Court:

The court found serious flaws in the decision-making process leading to the cancellation of tender notices for W1 and W2. The complaint against the petitioner-construction company was found without substance. The court quashed the cancellation order and directed the authority to issue a show-cause notice before proceeding with blacklisting.

Issues: The issues included the validity of the decision to cancel the tender notices, the fairness of the decision-making process, and the compliance with the Jharkhand Water Resources Contractors Registration Rules, 2018, Rule 6.2.

Ratio Decidendi: The court held that the decision to cancel the tender notices was arbitrary and lacked a lawful foundation. It emphasized the importance of fairness in administrative decisions and the need to prevent arbitrariness. The court also highlighted the requirement for clear norms and standards in the decision-making process.

Final Decision: The court allowed the writ petition, quashed the cancellation order, and directed the authority to issue a show-cause notice to the petitioner-construction company before proceeding with blacklisting.

ORDER :

(Shree Chandrashekhar, J.) :

M/s Aastha Constructions has filed this writ petition under Article 226 of the Constitution of India with a set of prayers which primarily concern cancellation of tender notices vide MID/CHAIBASA/F2-07/2022-23 (in short, W1) and MID/CHAIBASA/F2-08/2022-23 (in short, W2) and consequent issuance of MID/CHAIBASA/F2-16/2022-23 (2nd Call) & MID/CHAIBASA/F2-17/2022-23 (2nd Call) dated 3rd January 2023 – no prayer for cancellation of 2nd Call tender notices has been made in the writ petition.

2. The following prayers have been made in the writ petition:

    “a. For quashing of Letter No. 1683/DMFT dated 24.12.2022 (Annexure-17) wherein and whereby the Respondent No.3 unilaterally and ex-parte without issuance of any show cause has directed Respondent No.5 to cancel the tenders MID/CHAIBASA/F2-07/2022-23 & MID/CHAIBASA/F2-08/2022-23 and further directing to blacklist the name of the Petitioner for swearing false affidavit and to register FIR against the Petitioner. AND/OR

b. For stay on the operation, execution and implementation of the Letter No. 1683/DMFT dated 24.12.2022 (Annexure-17) wherein and whereby the Respondent No.3 unilaterally and ex-parte without issuance of any show cause has directed to blacklist the name of the Petitioner for swearing false affidavit and to register FIR against the Petitioner.

AND/OR

c. For directing the Respondent to allow the Petitioner to participate in re-tender of the same set of work vide Tender Nos. MID/CHAIBASA/F2-16/2022-23 (2nd Call) & MID/CHAIBASA/F2-17/2022-23 (2nd Call) dated 03.01.2023 (Annexure-19) issued by Respondent No.5 since the Petitioner has been recommended to be blacklisted by Respondent No.3 on frivolous grounds by violating the principals of natural justice.

AND/OR

d. For stay on Tenders No. MID/CHAIBASA/F2-16/2022-23 (2nd Call) & MID/CHAIBASA/F2-17/2022-23 (2nd Call) dated 03.02.2023 till the pendency of the present writ application.

AND/OR

e. For directing the Respondents to bring on record the report of the enquiry committee constituted vide letter No. 1194/DMFT dated 01.11.2022 by Respondent No.3 for the complaint made M/s S.P Traders against the Petitioner.

AND/OR

f. Any other relief or reliefs as Your Lordships may deem fit and proper for which the petitioner is very much entitled under the facts and circumstances of the case.”

3. Upon this writ petition being mentioned by the learned counsel for the petitioner, the matter was listed on 16th January 2023. The next day, the following order was passed by this Court:

    “I.A. No. 237 of 2023

This writ petition has been filed by M/s Aastha Constructions which is aggrieved of the order dated 24th December 2022 by which the Deputy Commissioner, West Singhbhum has directed the Executive Engineer, Minor Irrigation Division, West Singhbhum, Chaibasa to cancel the award of tenders MID/CHAIBASA/F2-07/2022-23 and MID/CHAIBASA/F2-08/2022-23.

The grievance of the petitioner is that without affording an opportunity of hearing to it, the Deputy Commissioner which has no powers in the matter of award or cancellation of the subject tenders, has issued the aforesaid direction, though the petitioner has been declared L-1 bidder.

Mr. Indrajit Sinha, the learned counsel for the petitioner has referred to the impugned communication which has been issued taking cognizance of the letter dated 10th October 2022 written by M/s S.P. Traders to the Chief Engineer, Water Resources (Minor Irrigation), Ranchi to submit that the allegations of submitting false affidavit inasmuch as Rajnish Kumar Singh who is the younger brother of the proprietor of the petitioner-construction company is working in the capacity of correspondence clerk in the Minor Irrigation Division, Chaibasa, and the allegation against Krishnalya Construction with which the petitioner-construction company has some past association has been blacklisted, are i



































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