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IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD
NAGESH BHEEMAPAKA
Kummari Sunitha – Appellant
Versus
Telangana State Road Transport Corporation, Rep. by its Managing Director, Hyderabad – Respondent
ORDER :
NAGESH BHEEMAPAKA, J.
Petitioner challenges the action of the 2nd respondent under proceedings dated 22.05.2025, by which, tender notification dated 19.07.2024 was cancelled and petitioner was directed to take refund of EMD. She requests that respondents be directed to grant license in her favour for Stall No. 29 in MGBS, Hyderabad.
1.1. Petitioner states that she submitted her tender offering a monthly licence fee of Rs. 2,61,000/-. The Corporation accepted her tender as the highest bidder. However, the license was not issued because the previous licensee filed Writ Petition No. 20948 of 2024 challenging the tender notification and seeking extension of his licence period. Due to this, the Corporation kept her case pending. She states that although the Corporation had decided to grant her licence, the interim order obtained in Writ Petition No. 20948 of 2024 caused the Corporation to ask her to wait for the disposal of that Writ Petition. The Corporation retained her earnest money deposit of Rs. 10,00,000/- for one year, stating that licence would be issued after Writ Petition was dismissed. Trusting this assurance, she waited for the outcome of the said Writ Petition.
1.2. Pet
A bidder has no enforceable rights until a tender is formally accepted, and authorities are entitled to issue fresh tenders after cancellation of previous notifications.
The tendering authority can cancel a tender for a single bidder if it serves public interest by ensuring greater competition.
respondent authority has right to refuse the lowest or any other tender bid or bids submitted, provided its decision is neither arbitrary nor unreasonable.
Lowest bidder has no vested right to contract; authority may cancel tender for valid reasons like cartel without malice; tender conditions not judicially reviewable unless arbitrary.
No vested right is established from bid submission; rejection of bid is valid when corporation ensures public interest and current market rates prevail.
The authority may cancel a tender without reason if lack of competition is evident; bidders have no enforceable rights without formal acceptance of their bids.
Court exercising powers under Article 226 of Constitution of India has jurisdiction to examine decision making process without even going into merits of such decision.
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