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2023 Supreme(Online)(AP) 11051

HIGH COURT OF ANDHRA PRADESH THURSDAY ,THE SIXTH DAY OF JULY TWO THOUSAND AND TWENTY THREE PRSENT THE HONOURABLE SRI JUSTICE RAVI CHEEMALAPATI WRIT PETITION NO: 36114 OF 2022 Between:

1. Ghanta Satya Sudheer, S/o Babu Rajendra Prasad, aged about 53 years, R/o Pavitra Residency, D.No. 3-63/FF1, Syndicate Bank Colony, Ramavarapadu, Vijayawada, Krishna District, Andhra Pradesh ...PETITIONER(S)

AND:

1. UNION OF INDIA Ministry of Finance, Rep. by its Secretary to Govt. of India, Finance Department (Banking Division), New Delhi.

2. Indian Bank, Rep. by its Managing Director and Chief Executive Officer, 66 Rajaji Salai P B No 1384, Chennai, Tamil Nadu.

3. The Sapthagiri Grameena Bank, Govt. undertaking, Sponsored by Indian Bank, Rep. by its General Manager, 19/565-11, 3rd Floor, Sai Yashus, Vellore road, Chittoor.

...RESPONDENTS Counsel for the Petitioner(s): A RAJENDRA BABU Counsel for the Respondents: HARINATH N (DEPUTY SOLICITOR GENERAL OF INDIA))

The Court made the following: ORDER THE HON’BLE SRI JUSTICE RAVI CHEEMALAPATI WRIT PETITION NO.36114 OF 2022

ORDER:

The present Writ Petition is filed seeking the following relief:

“....declaring the information furnished to the petitioner dt.08.09.2022 to cancel the entire process of tender on 16.08.2022 by returning the Tender Fee/ EMD amount and also the information dt.04.10.2022 that there is no requirement of issuing of assigning any reasons for cancellation of the tender and there after issuing fresh notification of tender dt.21.10.2022 by the 3rd respondent is arbitrary illegal colourable exercise of Power discriminatory apart from being biased and in violation of Article 14 of the Constitution of India and to quash or set aside the same and to issue a consequential direction to the 3rd respondent to proceed with the tender process held on 16.08.2022 by awarding contract to the petitioner being L1 and to pass....”

2. The short grievance of the petitioner is that the tender notification dated 23.07.2022 has been cancelled after declaring the petitioner as lowest bidder.

It is the case of the petitioner that he is class-I contractor, doing civil contract works in the State of Andhra Pradesh, Telangana and Karnataka and he has rich experience in execution of civil works and he has undertaken building construction works to the state government and could complete it successfully. It is further case that the 3rd respondent issued notification dated 23.07.2022, inviting the bids from the individuals and firms for execution of civil and electrical works i.e., renovation of existing regional office ground, first and terrace floors, pavers and exterior painting at Gudivada branch. Pursuant to the same, the petitioner participated in the tender for two works i.e, civil work and electrical work and as per the technical bid tender document the opening of the tender would be 16.08.2022 and completion period of work period is six months. The petitioner participated in the tender along with three other bidders out of which 2 bids are disqualified for non-production of relevant documents, and only 2 bids are qualified in the technical bid i.e, petitioner and another Sri M. Ratna Rao and later 3rd respondent opened financial bid in which the petitioner stood as lowest bidder. At this stage, 3rd respondent addressed a letter dated 08.09.2022, informing the petitioner that it was decided to cancel the entire process of tender dated 16.08.2022 by returning tender fee/EMD amount. The petitioner submitted a representation dated 26.09.2022 seeking information regarding the reasons of cancelling the tenders, for which, the third respondent by way of letter dated 04.10.2022, informed the petitioner that the bank reserves the right to accept/reject any tender or call for fresh tenders without assigning any reasons whatsoever as per point no.3(viii) of the conditions mentioned in the technical bid.

Questioning the same, the present writ petition is filed.

Opposing the same, the 3rd respondent filed his counter, and prayed to dismiss writ petition.

3. Heard Sri Rajendra Babu, learned counsel for petitioner and Sri Satyanarayana Dhara, learned standing counsel for the respondents.

4. Learned counsel for petitioner in elaboration to what has been stated in the affidavit contended that, having declared the petitioner as the lowest bidder pursuant to the tender notification dated 23.07.2022, the 3rd respondent decided to withdraw the tender and when the petitioner sought reasons for cancellation,the bank without assigning any reasons, has informed him that as per point no.3(viii), the bank reserves the right to accept/reject any tender or call for fresh tenders without assigning any reasons whatsoever. The said proceedings are placed on record and has drawn the attention of this Court to the same. He further contended that, the said action of the 3rd respondent in cancelling the tender without assigning any proper and justifiable reasons is highly arbitrary and unreasonable.

He further submitted that, though the scope of judicial review in tender matters is limited,

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