The authority has the discretion to cancel a tender without assigning reasons, provided it acts in good faith and in public interest, ensuring fairness and transparency in the process.

Headnote:(A) Constitution of India - Articles 14, 19(1)(g), and 21 - Tender Cancellation - The second respondent's cancellation of Tender Notification No.684/T2/MAF/TSSGDCFL/2021 was deemed legal due to the onerous conditions imposed, which limited competition and were found arbitrary - The petitioner, despite being technically qualified, had no accrued rights to the tender as no Letter of Intent was issued - The cancellation was justified to ensure adequate competition in the public interest. (Paras 8, 32, 46)

(B) Tender Process - The authority has the discretion to cancel a tender without assigning reasons, provided it acts in good faith and in the public interest - The court emphasized minimal interference in tender matters unless there is clear evidence of arbitrariness or mala fides. (Paras 12, 45)

(C) Judicial Review - The court reiterated that the tendering authority's interpretation of tender conditions should not be second-guessed unless there is a clear violation of principles of fairness and transparency. (Paras 38, 48)

Facts of the case:
The petitioner challenged the cancellation of a tender for the redevelopment of a Modern Abattoir Facility, citing arbitrary conditions that restricted participation. The tender was cancelled after only one bid was received, which the authorities deemed insufficient for competition.

Findings of Court:
The court found no arbitrariness in the cancellation and upheld the authority's right to revise tender conditions for better competition.

Issues: The main issues included the legality of the tender cancellation and the validity of the conditions imposed on bidders.

Ratio Decidendi: The court held that the authority acted within its rights to cancel the tender to ensure fair competition and that the petitioner had no enforceable rights as the tender process had not concluded.

Result: W.P.No.18543 of 2024 is dismissed; other writ petitions are disposed of.

Common Order :

W.P.No.18543 of 2024 is filed to declare the Order dated 08.07.2024 vide Proc.No.648/T2/MAF/2021 whereby the second respondent cancelled the Tender Notification No.684/T2/MAF/TSSGDCFL/2021 dated 01.09.2023 for the work of Redevelopment of Modern Abattoir Facility MAF, Chengicherla on “Redevelopment, Operate, Maintain and Transfer (ROMT) basis in PPP mode” after opening the price bid of the petitioner as illegal, contrary to law and to set aside the same and consequentially to award the tender for the work of “Redevelopment of Modern Abattoir Facility MAF Chengicherla on Redevelopment, Operate, Maintain and Transfer (ROMT) basis in PPP mode” to the petitioner.

Writ Petition Nos.25466, 27046, 27104 and 34350 of 2023 are filed to declare the Request for Proposal (RFP) issued by respondent No.2 vide Tender No.684/T2/MAF/TSSGDCFL/2021 dated 01.09.2023 to the extent of imposing onerous condition of Technical/Experience Criteria stipulated under Clause 4.5.8 wherein a bidder is required to have an “Operations and Management” experience for a minimum period of 12 years in the last 25 years on license/lease/O and M basis for any Integrated Modern Abattoir Facility for both Cattle and Sheep established by a Central/State/ Local Government Department/Authority/ Corporation / Government Cooperative Federation in India and also not permitting the Consortiums from participating in the bidding process in terms of the said tender as being arbitrary illegal, irrational, discriminatory and unreasonable apart from being malafide and in violation of Article 14, 19(1)(g) and 21 of the Constitution of India and consequently (i) Quash the term/condition stipulated under Clause 4.5.8 of the Request for Proposal issued vide tender dated 01.09.2023; and (ii) direct respondent No.2 to permit and allow even ‘Consortiums’ to participate in the bidding process.

Writ Petition Nos.27225 and 27226 of 2023 are filed to declare the action of respondent No.2 in insisting on the submission of the tender bid mandatorily by online upload to its e-portal/website as illegal and irrational and consider the tender bid of the petitioner sent by e-mail on 26.09.2023 to the e-mail ID of respondent No.2.

2. As the issue involved in all the writ petitions are related to tender condition in Notification No.684/T2/MAF/ TSSGDCFL/2021 dated 01.09.2023, all the writ petitions are being disposed of by way of this common order and W.P.No.18543 of 2024 is taken as the lead case.

3. The brief facts of the case as per the pleadings are that respondent No.2 has floated the tender on e-pronouncement platform for the work of “Redevelopment of Modern Abattoir Facility (MAF), Chengicherla on Redevelopment, Operate, Maintain and Transfer (ROMT) basis in PPP mode” with an estimated contract value of Rs.25.00 Crores for a License period of 30 years (15+15). As per the tender notification dated 01.09.2023, bids were to be submitted online and also by way of hard copies within the stipulated time as per the Request for Proposals (RFP) conditions. Respondent No.2 opened technical bid to evaluate the eligibility of the bidders meeting the criteria stipulated in the Bid notification. Thereafter, technical bids will be opened and after short listing, respondent No.2 would proceed to open the price bids only for short listed bidders and only the highest among them would be awarded with work.

4. The petitioner submits that it is an existing ‘O & M Agency’ and had the Right of First Refusal (ROFR) and as per earlier prevailing norms and tender notifications, no negotiation is permissible with any of the bidders at any stage of evaluation of bids. The petitioner had submitted bid through online as well as by hard copies offline. That upon opening of the tenders, the bid of another bidder M/s.Star Light, Hyderabad was found not to be technically qualified as such the same was rejected and the petitioner was found to be technically qualified and accordingly respondent No.2 informed the pe

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2024 Supreme(Online)(TEL) 22006

HIGH COURT OF TELANGANAN.V. SHRAVAN KUMAR, JM/s. Asian Foods – AppellantVersusThe State of Telangana – RespondentWP/25466/2023

The authority has the discretion to cancel a tender without assigning reasons, provided it acts in good faith and in public interest, ensuring fairness and transparency in the process.

Cases Referred (3)

HIGH COURT OF TELANGANA
N.V. SHRAVAN KUMAR, J
M/s. Asian Foods – Appellant
Versus
The State of Telangana – Respondent
WP/25466/2023