IMPORTANT POINT
A reasonable, fair and transparent State action cannot be interfered with.

JUDGMENT

V. GOPALA GOWDA, J.

Leave granted.

2. This Civil Appeal is directed against the impugned judgment and order dated 14.02.2013 passed by the High Court of Delhi at New Delhi in Writ Petition (C) No. 7993/2012 whereby it has set aside the decision of the appellant-Corporation, dated 30.11.2012, regarding cancellation of the earlier tender notice whereunder both the respondents were declared successful and it has also quashed the appellant-Corporation’s subsequent e-tender process carried out in pursuance of tender notice No. 24 dated 13.12.2012. Further, the High Court has directed the appellant-Corporation to process the bids submitted by both the respondents in accordance with law in pursuance of the Notice Inviting Tender No. 21 dated 15.11.2012. The correctness of impugned judgment and order is challenged in this appeal as the appellant-Corporation is aggrieved of the said judgment and order of the High Court.

3. The necessary brief facts are stated hereunder to appreciate the rival legal contentions urged on behalf of the parties:

The appellant is South Delhi Municipal Corporation and respondents are registered civil contractors with the appellant authorities and stated to have executed several works of the Corporation in the past. The appellant-Corporation in its area invited tenders relating to 26 works to be executed against NIT No. 21/EE(MZ-WZ)-II/TC/2012-2013 dated 15.11.2012. The last date for bid preparation and its submission was 26.11.2012 upto 3.00 PM and the opening of the financial bids was scheduled on 28.11.2012, but the date was extended to 29.11.2012 as 28.11.2012 was declared holiday on account of ‘Guru Nanak Birthday’.

4. On 29.11.2012, when the financial bids were opened, both the respondents were declared successful being the lowest bidder in respect of 16 works. There were only five bidders who participated in the tender process. Both the respondents being successful bidders approached the appellant-Corporation for issuance of work order against the works for which they were declared successful. The Executive Engineer of the appellant-Corporation orally informed the respondents about the cancellation of entire tender due to non- submission of draft by some of the bidders (containing the tender cost and earnest money) required to be filed along with the tender. Dissatisfied with the oral information about the cancellation process the respondents insisted for written intimation regarding the same.

5. On respondents’ insistence the appellant-Corporation issued a corrigendum dated 30.11.2012 which stated that the tender was being cancelled due to Administrative Reasons.

6. The respondents then sent a legal notice dated 13.12.2012 to the appellant-Corporation but they did not receive any reply to the same. However, on the same day appellant-Corporation issued a fresh NIT No. 24 EE- (M-WZ)-U/TC/2012-2013 dated 13.12.2012 inviting fresh bids from the eligible persons.

7. Being aggrieved by the cancellation of earlier tender i.e., NIT No. 21 dated 15.11.2012 vide corrigendum dated 30.11.2012, both the respondents filed a writ petition before the High Court of Delhi.

8. The High Court allowed the respondents’ writ petition holding that the process adopted by the appellant- Corporation in coming to the conclusion that the rates offered were high was faulty. The High Court on that basis set aside and quashed the decision of the appellant-Corporation dated 30.11.2012, regarding cancellation of its earlier tender and directed the appellant-Corporation to process the bids submitted by both the respondents in accordance with law in pursuance of the NIT No. 21 dated 15.11.2012. It also quashed the subsequent tender process pursuant to NIT No. 24 dated 13.12.2012. Hence, this appeal is filed by the appellant-Corporation challenging the said order on several grounds.

9. Mr. Gaurang Kanth, learned counsel for the appellant- Corporation contended that the High Court has erred in quashing the decision of the appellant-Corpora