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2025 Supreme(Jhk) 2308

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

Advocates Appeared:
For the Appellant :Mr. Deepak Kumar Sinha, Advocate Mr. Vikas Pandey, Advocate Mr. Janak Kumar Mishra, Advocate Ms. Diksha Dwivedi, Advocate
For the Respondent:Mr. Amritansh Vats, Advocate Mr. Amartya Choubey, Advocate Mr. Deepak Kumar Prasad, Advocate

Administrative orders must be evaluated solely on the reasons provided at the time of issuance, precluding retroactive justifications. Furthermore, public selection processes lack legal validity if they rely on criteria not explicitly disclosed in the original invitation, manifesting arbitrary state action.

Headnote:(A) Constitution of India - Article 14 - Administrative Law - Tender process - Arbitrary exercise of power - Public authorities must justify decisions based on reasons stated at the time of the order - When statutory functionaries make an order, its validity must be judged by the reasons mentioned therein and cannot be supplemented by fresh reasons in counter-affidavits later. (Paras 20, 21, 22)

(B) Administrative Law - Fairness in state action - Tender conditions - Adherence to stipulated criteria - Where multiple bidders quote identical financial terms, the selection process must follow criteria clearly specified in the tender document; absence of such specified criteria renders the final selection arbitrary and violative of the principle of fairness. (Paras 26, 28)

Facts of the case:
The petitioner participated in a procurement process and was initially informed of being the successful bidder. Subsequently, the authority awarded the contract to another participant. The authority later justified this decision by alleging that the petitioner’s bid failed to meet minimum wage requirements, a ground that was not cited when the bid was initially set aside. Evidence revealed that another selection criterion, which was not explicitly mentioned in the original tender documents, was used to favor the chosen participant over others who had quoted identical rates.

Findings of Court:
The court determined that the authority’s contention regarding the violation of wage requirements was an afterthought, raised for the first time before the court, and failed to reflect the actual reasons recorded by the committee. The court also observed that the decision-making process lacked a predetermined, documented methodology for breaking potential ties between candidates.

Issues: Whether the selection process of a successful candidate from among multiple equally positioned participants was arbitrary, and whether an administrative decision can be supported by reasons not mentioned in the original order during judicial review.

Ratio Decidendi: An administrative order must be evaluated solely based on the reasons recorded at the time of its issuance. Subsequent justifications provided in pleadings cannot validate an order that was deficient at its inception. Furthermore, awarding a contract based on unstated or vague criteria violates the mandate of transparency and fairness in public selection processes.

Result: Writ petition allowed; tender process cancelled.

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

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