D. Murugesan, J.

The substantial question raised in this writ appeal is as to whether the respondent-Tamil Nadu Electricity Board could reject the tender of the appellant without assigning any reason.

2. Bids were called for by tender notification dated 11. 2003 for sale of scraps and the appellant had submitted its tender for lot nos.5, 9, 13 & 14 and quoted a total rate of Rs.22,10,000/- and also remitted a sum of Rs.1,10,500/- towards earnest money deposit being 5% of the total value of the scrap. The tenders were opened on 12. 2003 and the appellant was the highest bidder, as it quoted Rs.40,000/- more than the next highest bidder. However, the said tender was not accepted and the same was communicated by the letter of the Chief Engineer (Distribution), Tamil Nadu Electricity Board, Madurai Region dated 22. 2004. The said letter reads as under:-

TAMIL NADU ELECTRICITY BOARD

From

The Chief Engineer (Distribution)

Tamil Nadu Electricity Board

Madurai Region, Madurai-7

To M/s Hasbi Traders No.17-A, Gopal Street Tiruvannamalai 606 601

Letter No.CE/D/MDU/Specn.7/2003-04/D.761/2004 dt.22. 2004

Dear Sirs,

Sub: Madurai Region-Specn.7/2003-04 – Dindigul EDC - Disposal of Scra