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2017 Supreme(Online)(Gau) 148

IN THE GAUHATI HIGH COURT
L.S JAMIR, S. SERTO, JJ
Nased J. Government registered Contractor & Supplier Nagaland v. North East Construction Government Registered Class - I Nagaland and Others
Writ Appeal | W.P.(C) No. 29(K) of 2015



Advocates:
For the Appellants/Petitioners: Mr. Imti Longchar
For the Respondents: Mr. K.Wotsa, Mr. Tongpok Pongener

Public interest and fairness must govern the tendering process, prohibiting judicial intervention in absence of mala fides or arbitrariness.

Headnote:(A) Constitution of India - Articles 14 and 21 - Tendering process - Dispute regarding acceptance and approval of tender - Court emphasizes on the need for public interest in award of contracts and that judicial interference should only occur in cases of mala fides, arbitrariness, or lack of public interest. (Paras 6, 8, 15, 21)

(B) Judicial Review - Scope and limits - A court should not intervene in award of contracts unless it finds elements of bad faith, nepotism, or arbitrariness, highlighting that competitive tendering requires judicial restraint. (Paras 10, 21)

Facts of the case:
Dispute arose over awarding a government contract for the construction of a tourist reception center in Nagaland. Initial approval given to appellant was later challenged by the opposite party based on changes made in tender approvals and accused of bias.

Findings of Court:
The High Court found that previous allegations of mala fides were unsupported, and that the government had acted within its rights in awarding the contract. The award process needed to be fair and transparent.

Issues: Whether there was any element of public interest and if the tender awarding process was tainted by any arbitrariness or discrimination against the opposite party.

Ratio Decidendi: The court reiterated that judicial restraint must be exercised in intervention of government contracts unless proven otherwise, elevating fair administrative action over private interests. The decision making was found to be proper, negating the allegations of unilateral negotiation and discrimination.

Result: Appeal allowed. The judgment and order impugned were set aside, directing the State to facilitate the contract proceeding for the appellant.

Table of Content
1. tender approval process led to dispute over fairness. (Para 1 , 2 , 3)
2. allegations of arbitrariness were made against government decisions. (Para 4 , 5 , 6)
3. judicial principles regarding intervention in administrative actions. (Para 7 , 8 , 9)
4. court emphasized public interest in the decision-making process. (Para 10 , 11 , 12)
5. final decision based on examination of evidence and existing laws. (Para 13 , 14)
6. appeal outcome reinforced due process in tendering. (Para 15)

1. Heard Mr. Imti Longchar, learned counsel who appeared for the appellant. Also heard Mr. K.Wotsa, learned Sr. Government Advocate, on behalf of the State respondents and also heard Mr. Tongpok Pongener, learned counsel who appeared on behalf of the opposite party / respondent No.1.

2. This is an appeal filed by the respondent No. 4 in W.P.(C) No. 29(K) of 2015 directed against the judgment and order dated 28.09.2015, passed by the learned Single Judge in the writ petition.

3. The brief facts which led to the filing of this appeal are as follows; The Directorate of Tourism, Government of Nagaland published a Tender Notice No. TOUR / ENGG - 637/2014-15, dated 04.09.2014, inviting tenders for construction of tourist reception centres in all the districts of Nagaland. The appellant / respondent No. 4 and also the opposite party / petitioner in the writ petition, W.P.(C) No. 29(K) of 2015 and M/s Lanu submitted their tenders in respect of the construction of tourist reception centre at Chuchuyimpang village in Mokokchung district which was given at Sl. No. 8 of the tender notice. The tenders were opened on 04.09.2014 in the presence of all the tenderers and it was found that the appellant and the opposite party No.1 quoted the lowest and same rate. A comparative statement prepared by the Committee was submitted to the Government of Nagaland for taking necessary decision and for issuing work order vide letter No. TOUR / ENGG - 637/2014-15/01, dated 18.11.2014, of the Director, Tourism department, Government of Nagaland.

Thereafter, the Additional Secretary to the Government of Nagaland, department of Tourism vide letter No. TSRM(C) - 6/66/2010, dated 09.12.2014, conveyed to the Director of Tourism, Government of Nagaland, the approval of the Government for accepting the tender of the appellant for construction of the tourist reception centre at Chuchuyimpang in Mokokchung district. However, the Under Secretary to the Government of Nagaland, department of Works & Housing issued a Corrigendum being No. TRSM(C) - 5/66/2010, dated 19.12.2014, wherein the approval of the Government conveyed earlier by Addl. Secretary to the Govt. of Nagaland, department of Tourism appeared to have been modified to the effect that instead of the appellant's tender that of the opposite party was accepted and approved.

Undeterred by the corrigendum, the Director of Tourism, Government of Nagaland in pursuance to the earlier Government approval issued the work order for construction of tourist reception centre at Chuchuyimpang at Mokokchung district vide his letter No. TOUR / ENGG - 637/2014-15/69, dated 20.01.2015, addressed to the appellant. Again on 28.01.2015, the same Under Secretary issued another Corrigendum being No. TRSM(C) No. 5/66/2010, dated 28.01.2015, by which the earlier approval of the Government approving the tender of the appellant was revalidated.

4. Thereafter, the opposite party No.1 / writ petitioner approached this High Court by filing the W.P. (C) No. 29(K) of 2015 alleging that on 19.12.2014, a Corrigendum being No. TRSM(C) - 5/66/2010, was issued by the Under Secretary to the Government of Nagaland, department of Works & Housing by which the approval of the Government accepting the tender of the appellant conveyed vide letter No. TRSM(C) - 5/55/2010, dated 09.12.2014, of the Additional Secretary to the Government of Nagaland, department of Tourism has been modified, therefore, the work order dated 20.01.2015, issued by the Director of Tourism i



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