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HIGH COURT OF JUDICATURE AT ALLAHABAD
SARAL SRIVASTAVA, AMITABH KUMAR RAI
Maha Shakti Traders – Appellant
Versus
State of U.P. – Respondent
| Table of Content |
|---|
| 1. background facts related to the tender process (Para 2 , 3 , 4 , 5 , 6 , 7 , 8 , 9 , 10 , 11 , 12) |
| 2. arguments regarding payment entitlement due to work completed (Para 13 , 14 , 15 , 16) |
| 3. court's reasoning on the denial of payment and arbitrariness (Para 17 , 18 , 19 , 20) |
| 4. final decision to allow the writ petition for payment (Para 21) |
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
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.
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.
Non-commencement of work allows for cancellation of administrative approvals under Article 226, ensuring public fund utilization.
Administrative decisions must be justified with reasons on record; arbitrary actions lacking justification violate principles of fairness and transparency.
Every decision of the State must be supported by reasons and cannot be arbitrary, whimsical, or capricious.
Condition of attending pre-bid meeting as prescribed in the public notice before the tender document was uploaded and was permitted to be downloaded, cannot be said to be arbitrary or mala fide.
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 ....
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