A bidder does not acquire a vested right to a contract merely by being declared the lowest bidder (L-1); the employer retains the discretion to cancel the tender process in public interest prior to the issuance of a work order, provided the decision is not arbitrary or mala fide.

Order on Board

Per Ramesh Sinha, Chief Justice

1. The present writ petition has been filed under Article 226 of the Constitution of India by the petitioner–firm calling in question the decision dated 04.02.2026 contained in the noting sheet whereby the respondent authorities have resolved to cancel the earlier tender process initiated pursuant to Notice Inviting Tender dated 25.03.2025 for construction of Cement Concrete Road with toe wall and side drain around the coal stock yard at Gayatri UG Mine under Bishrampur Area, and have further assailed the subsequent fresh Notice Inviting Tender dated 19.02.2026 issued by the respondents. The petitioner, having been declared L-1 in the earlier tender process, seeks quashment of the cancellation decision as well as the fresh NIT and further prays for issuance of a direction to the respondents to award the work in its favour. The grievance of the petitioner is essentially founded on alleged arbitrariness, mala fides, violation of the terms and conditions of the NIT, and breach of principles of natural justice in cancelling the earlier tender and proceeding for re-tendering.

2. The present petition has been filed by the petitioner seeking the following reliefs:-

“10.1. The Hon'ble Court may kindly be pleased to call for the entire record pertaining to the case of the petitioner.

10.2. The Hon'ble Court may kindly be pleased to quash the impugned decision dated 04/02/2026 contained in noting sheet (Annexure P-10) with regard to cancellation of tender and retendering.

10.3. The Hon'ble Court may kindly be pleased to quash the impugned NIT dated 19/02/2026 (Annexure P-2) issued by respondent authorities.

10.4. The Hon'ble Court may kindly pleased to direct the respondent no. 2 to 4 to issue the work order in favour of petitioner with respect to NIT bearing No. GM/BSPR/Civil/e-tender/2024-25/65 dated 25.03.2025 for which the petitioner was declared L-1.

10.5. The Hon'ble Court may kindly be pleased to direct the respondent no.1 to make enquiry and take appropriate legal departmental action against the authorities acting arbitrarily.

10.6. Any other relief, which this Hon'ble Court may deem fit and proper may also be awarded to the petitioner including the cost of the petition.”

3. The facts of the case as emerges from the pleadings of the petition are that, the petitioner is a registered partnership firm carrying on civil construction works and is duly registered under the relevant statutory provisions, including GST registration. The firm participated in an e-tender process initiated by respondent No.1 South Eastern Coalfields Limited (hereinafter referred to as “SECL”) pursuant to Notice Inviting Tender dated 25.03.2025 for construction of Cement Concrete Road with toe wall and side drain around the coal stock yard at Gayatri UG Mine under RGK Sub Area, Bishrampur Area, for an estimated cost of Rs. 2,28,92,655/- with a stipulated completion period of 240 days.

******* The tender was invited under a two-bid system (technical and price bid) through the online portal. The petitioner submitted its bid within the prescribed time along with requisite documents relating to experience, turnover, and other eligibility criteria as stipulated in the NIT. Upon opening of the technical bids on 14.04.2025, the petitioner was found eligible along with other bidders, and the Tender Committee recommended opening of the price bid. Thereafter, the price bid was opened and the petitioner was declared L-1 (lowest bidder) as reflected in the BOQ summary uploaded by th