The court held that arbitrary cancellation of a tender and issuance of a new one without valid grounds violates principles of natural justice, warranting judicial intervention.

ORDER :

Ananda Sen, J.

1. By filing this writ petition, petitioner has prayed for the following reliefs :

(a) For issuance of an appropriate writ, order or direction restraining the Respondent No.2 from cancelling the tender bearing no.E-Tender UDD/NPG/01/2022-23 (ANNEXURE 1) and the work orders bearing no. 867 and 868 dated 29.08.2022 issued to the Petitioner (ANNEXURE 3) pursuant to being selected as the successful bidder thereunder;

(b) For issuance of an appropriate writ, order or direction quashing and/or setting aside the tender bearing No.E-Tender UDD/NPG/12/2022-23 dated 18.10.2022 (ANNEXURE 7) and restraining the Respondent No.2 from taking any steps in furtherance of the same, including without limitation awarding the works earlier awarded to the Petitioner under the tender bearing No.E-Tender UDD/NPG/01/2022-23 (ANNEXURE 1);

(c) For issuance of an appropriate writ, order or direction directing the Respondent No.2 to keep in abeyance the new tendering process initiated by way of tender bearing No.E-Tender UDD/NPG/12/2022-23 dated 18.10.2022 (ANNEXURE 7);

2. On 06.09.2023, an interim order was passed to the effect that no third party interest will be created in the work, which is subject matter of this writ petition.

3. After hearing the counsel for the parties, we have also gone through the records.

4. The facts lie in a very narrow compass and are admitted by the parties. Tender was issued by the respondent No.2 on 26.04.2022. The work was in respect of construction of PCC Road and RCC Drain with pre-cast slabs and paver blocks. The petitioner, a proprietorship firm, participated in the tender process and submitted the technical and financial bid for construction of PCC Road and RCC Drain with pre-cast slabs in Ward Nos.8 and 9 and also in Ward Nos.5, 11 and 12. The work in relation to Ward Nos.8 and 9 were covered under Package 6 and the work in relation to Ward Nos.5, 11 and 12 were covered under Package 7. The Committee evaluated the bid submitted by various bidders and the petitioner and ultimately on 19.07.2022, technical bid and financial bid was approved. Petitioner and the respondent No.2 entered into two separate agreements, both dated 30.07.2022. For the two works, two separate work orders were issued in favour of the petitioner, being Work Order Nos. 867 and 868, both dated 29.08.2022. Petitioner was called upon to commence construction work and to complete the same within a period of six months. Work was for a short term. The works were inaugurated on 01.09.2022 and 02.09.2022. Be it noted that the security money was also deposited. Suddenly on 07.09.2022, respondent No.2 directed the petitioner to stop further construction work covered under the aforesaid tender. No grounds were mentioned as to why work was directed to be stopped. Petitioner along with others were called upon to appear before a Committee on 12.09.2022 at 03.00 PM for verification of the original documents submitted with their bid. Petitioner appeared and submitted all the documents. Suddenly on 18.10.2022, a separate tender was issued in respect of the same work, which was allotted to the petitioner. It is the case of the petitioner that the respondents, in a most arbitrary manner, issued fresh tender. Issuing fresh tender means and implies cancelling the work of the petitioner, in utter violation of the principles of natural justice as no ground as to why the work has been stopped and fresh tender has been issued was any where been intimated. On this background, the petitioner has challenged the action of the respondents by which the work of the petitioner was stopped and she also challenged issuance of fresh tender in respect of the same work, which was issued to the petitioner.

5. The State filed a counter affidavit. In the counter affidavit, they have annexed letter No. 1224/Ra. issued by the Additional Collector, Godda addressed to the Deputy Commissioner, Godda, wherein irregularities in respect of each of the tenderers were highlighted. A