Judicial review in tender matters is limited to the decision-making process. A letter of intent does not constitute a concluded contract, and state authorities may validly cancel a tender process where bids exceed budgetary estimates, provided the decision is transparent and free from arbitrariness or bad faith.

JUDGMENT :

M.S. Sonak, C.J.

1. Heard Mr M.S. Mittal, learned senior counsel with Mrs Swati Shalini, learned counsel for the petitioner, Mr. Ashutosh Anand, learned AAG-III for the respondent Nos. 1 to 4, as also Dr (Mrs) Vandana Singh, learned counsel for 5th respondent.

2. At the request of and with the consent of the learned counsel for the parties, this petition was heard finally on 23.04.2026 and closed for ‘Orders’.

3. The petitioner, by invoking the extraordinary jurisdiction of this Court under Article 226 of the Constitution, has sought for the following substantive reliefs in this petition: -

“a. For issuance of appropriate writ(s)/ order(s)/direction(s), particularly in the nature of certiorari for quashing of the Intimation of Cancellation of Tender dated 21.08.2025 (Annexure-14), along with the Corrigendum for Cancellation, bearing PR Ref. No. 349383, (Annexure- 14/1), issued by the Respondent No. 4, whereby and whereunder, the respondent Authorities in a most mechanical and arbitrary manner, without assigning any cogent reasons have cancelled the NIT bearing Tender Ref.: JAPIT/HIGHCOURT-DMS/01/2025 for "Purchase, Installation, Configuration & Integration of two Server System (Live & Backup) & Other Equipment with 05 Years Comprehensive Warranty along with 24x7 Technical Manpower at Data Center of Hon'ble Jharkhand High Court, Ranchi" And,

b. For further issuance of appropriate writ(s)/ order(s)/direction(s), particularly in the nature of certiorari for quashing of the Letter No. 1719 dated 13.06.2025 (Annexure-10), issued under the sign and seal of the Respondent No. 4, whereby and whereunder despite issuance of LOI in favor of the Petitioner, the Respondent No. 4 in a most arbitrary and whimsical manner, at a belated stage, on the grounds of Budgetary Constraint has directed the Petitioner to reduce the quoted price from Rs. 30,52,16,321/- to Rs. 22,86,027,91.70/-. And,

c. For issuance of further appropriate writ(s)/ order(s)/direction(s) upon the Respondent authorities, directing them to execute the contract in furtherance of NIT bearing Tender Ref.: JAPIT/HIGHCOURT-DMS/01/2025 for "Purchase, Installation, Configuration & Integration of Two Server Systems (Live & Backup) and Other Equipment with 05 Years Comprehensive Warranty along with 24x7 Technical Manpower at the Data Center of the Hon'ble Jharkhand High Court, Ranchi," in favor of the Petitioner, inasmuch as the Petitioner has already been declared as the L-1 bidder and the Respondent authorities have issued the Letter of Intent (LOI) in its favor on 19.05.2025, pursuant to which the Petitioner has already furnished a Performance Bank Guarantee amounting to Rs. 1,52,60,816/- And,

d. During the pendency of this writ petition, Intimation of Cancellation of Tender dated 21.08.2025 (Annexure-14), and the Corrigendum for Cancellation, bearing PR Ref. No. 349383, (Annexure- 14/1), issued by the Respondent No. 4 may kindly be stayed; And,

e. (Amended vide order dated 09.03.2026) For issuance of further appropriate writ(s)/ order(s)/, direction(s) for quashing the bid No. GEM/2025/B/6984701 dated 10.12.2025 vide which the proposals for the same work that