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SUJOY PAUL, SHAILENDRA SHUKLA
Piyush Kumar Sheth – Appellant
Versus
State of M. P. – Respondent
ORDER
Paul J:- 1. In this petition filed under Article 226 of the Constitution of India, the challenge is mounted to order dated 27.5.2011 (Annexure- Writ Petition No.9780/2021 2 P/9 and P/10), whereby the tender of petitioner has been cancelled. The challenge is also made to the new N.I.T. issued on 27.5.2021.
2. Shri Sethi, learned senior counsel urged that the pivotal question in the case is whether the respondents are justified in cancelling the tender of the petitioner when admittedly his bid was of more than 75 crores, whereas the reserve price was only 72.6 crores. His technical and financial bids were accepted. The reserve price fixed was much above the price to be fixed as per Collector guidelines. Petitioner's bid was shown to be accepted on 26.05.2021 on the portal of the Government. The decision of cancellation of bid could have been taken by Finance Committee and not by the Cabinet. The new N.I.T. again quotes the same reserve price of rupees 72.61 crores. Since the petitioner's bid was much above the reserve price aforesaid, there was no justification in cancelling the bid.
3. It is further submitted that although the petitioner was the single bidder, there is no justifi
Courts should exercise restraint in interfering with tender matters and should only do so in cases of gross arbitrariness, discrimination, malafides, or bias.
The court upheld the principle that tenders are to be evaluated based on rules prevailing at the time of issuance, and subsequent amendments do not apply retroactively.
The court clarified that no opportunity of hearing is required for the lowest bidder before cancellation of a tender notice, as no vested right exists until the bid is confirmed.
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