The court held that cancellation of a tender cannot disrupt the obligation to pay for work completed, establishing principles of equity and promissory estoppel in administrative actions.

JUDGMENT :

AMITABH KUMAR RAI, J.

1. Heard Ms. Saumya Mandhyan, learned counsel for the petitioners and Sri Krishna Dutt Mishra, learned Additional Chief Standing Counsel for the State-respondents.

2. The instant writ petition has been preferred seeking the following reliefs:-

"(i) to issue a writ, order or direction in the nature of certiorari quashing the order and judgment dated 20.01.2016 passed by the Respondent No. 2 so far as it concerns the Petitioner No. 1, being arbitrary, whimsical and bad in law;

(ii) to issue a writ, order or direction in the nature of mandamus directing the respondents to release the amount of Rs. 59,62,135/- for the tender work of Sewer Construction (Nala Nirman) from Soron Gate Police Chowki to Allahnoor Saifi's Shop to the petitioners;

(iii) to issue a writ, order or direction in the nature of mandamus directing the respondents to release the amount of Rs. 2,22,000/- for the tender work of supply of clamps with nut bolt to the petitioners;"

3. The brief facts of the case are that tenders were invited by the Nagar Palika Parishad, Kasganj for 41 categories of works vide tender notification dated 4.8.2015. The petitioner’s firm in furtherance of the tender notification submitted bid for two tenders, one for construction of sewerage from Soron Gate Police Chowki to Allahnoor Saifi's Shop with bid amount of Rs.59,62,135/-. The bid of the petitioner’s firm was lowest, hence tender committee recommended for award of tender to the petitioner’s firm on 19.8.2015 which was accepted and the work order was issued. The petitioner’s firm also submitted bid for supply of clamps with nut bolts which was also accepted in favour of the petitioner’s firm. As per the tender invitation notice dated 4.8.2015, the work of sewerage construction was to be completed within two months and the supply of clamp was to be made within 15 days of the award of the tender. The supply order was issued by the Executive Officer, Nagar Palika Parishad, Kashganj for supply of the clamp along with nut bolts which is annexed at Page No. 47 of the writ petition and furtherance thereof petitioner’s firm supplied the quantity of clamps with nut bolts which was duly acknowledged and the receipt of such acknowledgment are collectively annexed as Annexure No.8 to the writ petition.

4. The acknowledgment indicates that the supply of the clamp along with nut bolts were made between the period 3.11.2015 to 24.11.2015. In the meantime, it seems that some complaint was made by one of the contractor which was inquired upon by the Additional District Magistrate, Kasganj who submitted its report dated 29.12.2015 and on the basis of the said inquiry report, order dated 20.1.2016 was passed by the District Magistrate, Kasganj cancelling the tender invitation notice dated 4.8.2015. In the meantime, the petitioner’s firm has already supplied the clamp along with nut bolts in reference to the tender invitation notice dated 4.8.2015 amounting to Rs.2,22,000/- and has also completed the construction of the sewerage up to 85 to 90 per cent.

5. It seems that thereafter a fresh tender notice was issued inviting tender with respect to the works which were also part of the notice inviting tender dated 4.8.2015, out of which many works already stood completed, hence a complaint was made and the Additional District Magistrate, Kasganj. In charge (Local Bodies) instituted inquiry vide letter dated 10.3.2016 by a team comprising of Tehsildar (Judicial), Kasganj, Executive Officer P.W.D., Kasganj, Executive Officer, Rural Engineering Department, Kasganj. The committee submitted its report on the basis of which the Additi