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
| 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
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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.
A public authority's decision to cancel a tender must be reasoned and not arbitrary; failure to provide justifications exposes such decisions to judicial scrutiny.
The procuring entity has the discretion to cancel tenders and re-invite bids without prior communication of reasons; judicial review is limited to assessing arbitrariness or statutory violations in p....
The validity of administrative decisions must be judged on the basis of reasons existing on record, and the authority cannot provide new/additional reasons when the Court calls for them as they must ....
The tender inviting authority has the right to accept or reject any bid and to annul the bidding process at any time prior to the award of contract without assigning any reason.
Cancellation of tender where L-1 bid within 5% limit, suspecting cartel without evidence, and inconsistent with prior awards exceeding limit, held arbitrary, violative of Article 14 warranting judici....
respondent authority has right to refuse the lowest or any other tender bid or bids submitted, provided its decision is neither arbitrary nor unreasonable.
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