IN THE HIGH COURT OF JHARKHAND AT RANCHI
Tarlok Singh Chauhan, C.J.RAJESH SHANKAR, J.
M/s Cobra Industrial Security Force (I) Ltd., having its registered office at Tiwari Mansion – Appellant
Versus
Birsa Agricultural University, Kanke, Ranchi – Respondent
W.P. (C) No. 2488 of 2025
Decided on : 09-09-2025
| Table of Content |
|---|
| 1. petitioner's grievance regarding arbitrary tender award and factual background. (Para 1 , 2 , 3 , 4 , 5) |
| 2. respondent's claim of bid rejection based on non-compliance with minimum wages and selection criteria. (Para 6 , 7 , 8 , 9 , 10 , 11) |
| 3. court oversight shows inconsistency in respondent's stated rationale versus tender proceedings. (Para 12 , 13 , 14 , 15 , 16 , 17 , 18 , 19 , 20) |
| 4. orders must be judged by original reasoning, not supplemented by later affidavits. (Para 21 , 22 , 23 , 24 , 25) |
| 5. arbitrary tender actions violate article 14, necessitating tender cancellation. (Para 26 , 27 , 28 , 29 , 30) |
JUDGMENT :
Rajesh Shankar, J.
1. The present writ petition has been preferred for quashing and setting aside the Letter of Award dated 03.04.2025 issued by the Purchase Officer, Birsa Agricultural University, Kanke, Ranchi (Respondent No.3) whereby the work related to E-Tender Ref. No. F-05/06/Security/Part-V with respect to providing security arrangement on contract basis at Birsa Agricultural University, Ranchi (hereinafter referred as the said Tender), has been awarded to M/s Shiva Protection Force Private Limited (Respondent No. 4). Further prayer has been made for award of the said tender in favour of the petitioner as it was declared L1 bidder and vide email dated 05.04.2025, it was informed that its bid was accepted by the duly constituted committee.
2. The learned counsel for the petitioner submits that the said tender was floated by the respondent-University in which the petitioner also participated. Thereafter, being declared technically qualified, the financial bids of all the bidders were opened on 05.04.2025 and the respondent-University communicated the petitioner vide e- mail 05.04.2025 that its financial bid was accepted by the duly Constituted Committee.
3. It is further submitted that on the same day i.e. on 05.04.2025, the BOQ Summary Details were uploaded in the e-procurement portal wherein the petitioner was shown as L-1 bidder in all respect. However, the respondent-University subsequently vide another e-mail dated 05.04.2025, informed the petitioner that its bid was not selected for award of contract by the duly Constituted Committee. The petitioner was further advised to visit the e-procurement portal for further details.
4. It is contended that the petitioner having visited the e-procurement portal found that a Letter of Award dated 03.04.2025 with respect to the said tender was issued by the respondent No. 3 in favour of the respondent no. 4.
5. It is also submitted that Tender Summary Reports relating to all the nine bidders were uploaded on the e-procurement portal on 07.04.2025 wherein the petitioner was capriciously shown as L-5 bidder. The action of the respondents is actuated with malafide and is also discriminatory in nature as well as against the express terms and conditions of the tender.
6. On the contrary, the learned counsel for the respondent-University submits that the financial bids of all the bidders were opened on 28.01.2025 and as per the computer generated ranking, the petitioner was declared L1 bidder on the basis of wages proposed for various categories of security personnel, however on close scrutiny, it was found that the petitioner had quoted wages much below the minimum wages notified under The Minimum Wages Act, 1948, which was not only unacceptable but was also illegal. Consequently, the petitioner’s bid as L1 was rejected by the Central Purchase Committee (CPC).
7. It is further submitted that the bids of all nine bidders were examined and it was found that 8 out of 9 bidders had quoted the commission rate as 3.85% except M/s Security and Intelligence Services (India) Ltd. (SIS), Ranchi, which had quoted 10% commission rate. As such, the bid of SIS was not considered due to high commission rate and the CPC thereafter examined the ‘Average Annual Turnover’ of rest eight bidders for last three financial years wherein it was found that the respondent no. 4 had t
Mohinder Singh Gill & Another Vs. Chief Election Commissioner and New Delhi & Others
AI
Ambiguity in tender terms and conditions led to the cancellation of the tender and disqualification of the lowest bidder. The court emphasized the importance of clear and unambiguous tender condition....
The court ruled that disqualification of a bidder without opportunity to respond violates principles of natural justice, and tender ambiguity necessitates careful clarifications to avoid unfair resul....
Tender conditions mandating compliance with minimum wage must strictly be followed; non-compliance voids bid eligibility.
Judicial review in tender matters is limited to cases of arbitrariness or fundamental legal errors; ambiguity in tender specifications justifies cancellation.
The tendering authority has the power to negotiate with the L-1 tenderer for the rates quoted considering the reasonability of the rates for different categories.
A bid not meeting the lowest statutory requirements due to material non-compliance does not invalidate the tender if the overall statutory obligations are met, allowing a degree of flexibility in com....
The decision-making process of the authority can be subject to judicial review, and interference is warranted if the decision is found to be palpably arbitrary and unreasonable.
The court established that significant deviations from tender guidelines and arbitrary evaluation criteria violate the principles of fairness and proportionality under Article 14 of the Constitution.
Lowest bidder has no vested right to contract; authority may cancel tender for valid reasons like cartel without malice; tender conditions not judicially reviewable unless arbitrary.
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