SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Audio Icon Pause Audio Icon
judgment-img

2026 Supreme(Mad) 352

IN THE HIGH COURT OF JUDICATURE AT MADRAS
P.T. ASHA, J.
M/s. URC Construction (P) Limited, Represented by its Authorised Signatory, Mr. K. Vijayakumar – Petitioner 
Versus
Chennai Metro Rail Limited, A Joint Venture of Government of India and Government of Tamil Nadu, Represented by its Chief General Manager – Respondent
W.P.Nos.47323 and 47327 of 2025 and W.M.P.Nos.52834, 52833, 52827 and 52830 of 2025
Decided On : 12-02-2026

Advocates Appeared:
For the Petitioner:Mr. A.L. Somayaji, Senior Advocate for Mr. J. Rishikesh.
For the Respondents: Mr. Raghavendra Ross Divakar.

The tender accepting authority may cancel bids without stated reasons and has discretion in evaluating tenders based on competitive pricing, as upheld by the court.

Headnote:(A) Constitution of India - Article 226 - Tamil Nadu Transparency in Tenders Act - Sections 10(3), 12(1) - Writ Petitions challenging discharge of tender and issuance of fresh tender - Petitioner calculated as lowest bidder, subsequently discharged without assigned reasons - Court finds discharge justified, upholding authority's discretion to maintain competitive bidding integrity. (Paras 3, 11, 12, 13)

(B) Tenders - Responsibilities and Rights - The tender accepting authority retains the right to reject any bid and annul the process without disclosing reasons, as confirmed by the petitioner’s acknowledgment. (Paras 4, 5, 6, 11)

Facts of the case:
The petitioner submitted a tender and was declared the lowest bidder at Rs.5.18 crores for a project but was informed of the discharge of the tender on 04.11.2025, following negotiations. Subsequently, a new tender was issued for a different scope on 05.11.2025. (Paras 3, 4)

Findings of Court:
The court held that the discharge was not arbitrary and noted the authority’s right to adjust procurement strategy based on tenders exceeding estimated costs. (Paras 11, 12, 13)

Issues: Whether the discharge of the tender was arbitrary and if the reasons provided for cancellation were justified. (Paras 11, 12)

Ratio Decidendi: The court ruled that the authority acted within its rights to discharge the tender due to the price exceeding the approved estimate and upheld that no prior reasons need to be assigned as per the tender's terms. (Para 12)

Result: Writ Petitions dismissed.

Table of Content
1. factual background of the case. (Para 1 , 2 , 3)
2. details of the petitioner's bid and cancellation. (Para 4)
3. petitioner's arguments against tender discharge. (Para 5 , 6)
4. respondents' defense regarding tender process. (Para 7 , 8)
5. court's analysis on tender cancellation. (Para 10)
6. court's dismissal of the writ petitions. (Para 12)

ORDER :

P.T. ASHA, J.

W.P.No.47323 of 2025 has been filed for the following relief :

“To issue a Writ of Certiorarified Mandamus, calling for the records of the 2nd respondent, relating to the notification dated 04.11.2025 bearing No.NIT CMAML/CP/TDR-50-CON/2025 discharging the tender related to “Design and construction of Civil, Structural, Architecture, MEP, HVAC, Lifts, Landscaping and all Associated Works for establishment of Integrated Bus Terminal Cum Commercial / Office development at Vadapalani Bus Depot and quash the same and consequently direct the 2nd respondent to accept the petitioner’s bid dated 30.07.2025 and award the contract for the “Design and Construction of Civil, Structural Architecture, MEP, HVAC, Lifts, Landscaping and all Associated Woks for establishment of Integrated Bus Terminal cum Commercial / office development at Vadapalani Bus Depot” to the petitioner herein.

W.P.No.47327 of 2025 has been filed for the following relief:

“To issue a Writ of Certiorari Mandamus, calling for the records of the 2nd respondent relating to the Tender Notice dated 05.11.2025 bearing no NIT No.CMAML/CP/ TDR- 10 -CS- DDC/ 2025 towards “Detailed Design of Integrated Bus Terminal cum Commercial/Office Development at Vadapalani Bus Depot” and quash the same.”

2. Considering the fact that the genesis for both the writ petitions are one and the same, a common order is being pronounced.

3. Factual Matrix The factual matrix giving rise to the above writ petitions are as follows:-

(i) On 29.05.2025, the 2nd respondent had invited tenders for a project which is titled “Design and Construction of Civil, Structural, Architecture, MEP, HVAC, Lifts, Landscaping and all Associated Works for the establishment of Integrated Bus Terminal Cum Commercial / Office development at Vadapalani Bus Depot”. The last date for submission of the bids was 30.07.2025. The contract in question was a “Turn-key” or in other words a “design and build” contract, placing the entire responsibility on the tenderer starting from the detailed investigation and design up to the construction and commissioning. Since this was a “lump-sum” tender, persons bidding were required to possess significant resources.

(ii) It is the case of the petitioner that they had submitted a bid on 30.07.2025. The petitioner qualified for the technical bid and after the opening of the price bid, they were declared the lowest bidder at a sum of Rs.5.18 crores, which was 6.95% lower than lowest bidder(L2). Thereafter, a series of four meetings were held between the petitioner and the respondents. On 14.10.2025 and 17.10.2025, the 1st respondent had called the petitioner for negotiations and to submit their important credentials. In the first of these meetings held on 16.10.2025, the respondents had requested the petitioner to offer discounts and the petitioner had offered a discount of 1.50% in total subject to the condition that a discount of 0.75% would be granted if land is provided for the workers’ inside the campus and the remaining 0.75% if land for a batching plant was provided within the campus. The 2nd negotiation was held on 22.10.2025, during which further reductions were discussed and the petitioner had informed the respondents that the contract value quoted by them was lower than the value based on CPWD DPAR and the petitioner's original estimate.

(iii) It is the case of the petitioner that during these negotiations, the respondents had repeatedly requested the petitioner to share commercially sensitive and proprietary data. Though these details were the petitioner’s exclusive Intellectual Property, the petitioner, on the belief

Click Here to Read the rest of this document
1
2
3
4
5
6
7
8
9
10
11
SupremeToday Portrait Ad
supreme today icon
logo-black

An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers

Please visit our Training & Support
Center or Contact Us for assistance

qr

Scan Me!

India’s Legal research and Law Firm App, Download now!

For Daily Legal Updates, Join us on :

whatsapp-icon Back to top