BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT
G.R. Swaminathan, J.
M.A.S.E. Nasar – Petitioner
Versus
The District Collector, Sivagangai and Others – Respondents
W.P. (MD) No. 4315 of 2024
Decided On : 04-03-2024
Tender Process - Lowest Bidder - Court sets aside decision to cancel tender process and directs evaluation of offers
Fact of the Case:
The petitioner participated in a tender process for civil works but the tender process was cancelled after the petitioner emerged as the lowest bidder.
Finding of the Court:
The court found that the decision to cancel the tender process based on the lowest bid and vague complaints against the petitioner was not justified.
Issues: The issue was whether the decision to cancel the tender process based on the lowest bid and vague complaints against the petitioner was valid.
Ratio Decidendi: The court held that the decision to cancel the tender process based solely on the lowest bid and vague complaints was not justified and directed the evaluation of offers made by various applicants.
Final Decision: The court set aside the decision to cancel the tender process and directed the third respondent to evaluate the offers made by various applicants within three weeks.
JUDGMENT :
(Prayer: Writ petition filed under Article 226 of the Constitution of India, to issue a Writ of Certiorarified Mandamus, calling for the records pertaining to the impugned order passed by the 3rd respondent vide his proceedings dated 15.02.2024 and quash the same as illegal and further direct the 3rd respondent to issue work order as per Tender notification in Na.Ka.No.428/2023/A1 dated 27.10.2023 for digging of bore well and construction of Sintex Tank in ward No. 14, 13, 18 to the petitioner in a time bound manner.)
1. Heard both sides.
2. The local body/ third respondent herein issued tender notification dated 22.09.2023 calling for applications from the eligible contractors for carrying out certain civil works (ie.) installation of bore wells with syntax tank). The petitioner wanted to apply in response thereto. Since the tender schedule was not issued, the petitioner had to file W.P.(MD)No.24592 of 2023.
3. When the matter was taken up for hearing on 11.10.2023, the learned Additional Government Pleader submitted that the tender process itself had been cancelled. I directed that as and when the fresh tender notification is issued, the petitioner will be informed through e-mail.
4. The local body issued a fresh tender notification on 10.10.2023. The petitioner applied in response thereto. He turned out to be the lowest bidder. The tender process was also cancelled by citing technical issues. Thereafter, the local body issued tender notification on 27.10.2023. Totally three persons took part. The petitioner was also one of them and he turned out to be the lowest. Instead of confirming the petitioner's tender, the council passed the impugned resolution for cancelling the tender process. Challenging the same, the present writ petition came to be filed.
5. The learned counsel appearing for the petitioner reiterated all the contentions set out in the affidavit filed in support of the writ petition and called upon this Court to grant relief as prayed for.
6. The learned Special Government Pleader appearing for the respondents submitted that the impugned resolution does not warrant interference. He pointed out that it is open to the tender inviting authority to cancel the tender process and that no applicant has any vested right as such. At this stage, the petitioner's right is inchoate in character. He pointed out that the petitioner had quoted ridiculously low amount. The council came to the conclusion that it is not possible to carry out the impugned works with the sum quoted by the petitioner herein. The stand of the respondents is that if the authority comes to the conclusion that with the sum offered by the applicant it is not possible to fulfil the contract work, then the tender inviting authority is not obliged to confirm the tender by accepting the quotation offered by the lowest bidder. He called upon this Court to dismiss the writ petition.
7. I carefully considered the rival contentions and went through the materials on record.
8. The proposition of law sustained by the learned counsel for the third respondent is entirely correct. But the facts pertaining to this case cannot be lost sight of. It is not as if the tender process is being floated for the first time. In fact for the very same work, the local body issued the tender notification on 22.09.2023. It is not as if the tender process proceeded to its logical conclusion. Even the tender schedule was not given to the petitioner herein.
9. I take judicial notice of the fact that one way of interfering with the tender process is not by issuing tender schedule. The petitioner was constrained to come to this Court for getting tender schedule and he filed W.P.(MD)No.24592 of 2023.
10. When the matter was taken up for hearing, it was rendered infructuous in view of the stand taken by the respondents. The tender process itself had been cancelled. The second tender notification process was initiated vide notification dated 10.10.2023 also made the very same fate. The petit
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