Searching Case Laws & Precedent on Legal Query!
Scanned Judgements…!
Searching Case Laws & Precedent on Legal Query!
Scanned Judgements…!
Tender Cancellation Due to Non-Compliance and Single Bidders - The authorities have canceled tenders when legal or procedural requirements, such as compliance with tender conditions or the presence of only a single bidder, were not met. For example, in source 2024 0 Supreme(Cal) 1074, the tender was canceled because of non-compliance with Section X and due to only one bidder participating, as per Clause 24 of the NIT. Similarly, in 2023 0 Supreme(Jhk) 1496, the tender was re-tendered after cancellation, and in 2025 0 Supreme(Ker) 1656, the tender was canceled and re-notified following procedural requirements. 2024 0 Supreme(Cal) 1074, 2023 0 Supreme(Jhk) 1496, 2025 0 Supreme(Ker) 1656
Cancellation Despite Work Completion or Partial Work - Courts have held that tenders can be canceled even if contractors have completed part of the work, provided procedural fairness is maintained. In 2023 0 Supreme(Gau) 1446, the court emphasized that cancellation without reasons is invalid, and the contractor's valid registration was acknowledged. However, in 2024 0 Supreme(Kar) 18, the contract was terminated, and a new tender was called for, indicating that completion or partial work does not preclude cancellation if justified. 2023 0 Supreme(Gau) 1446, 2024 0 Supreme(Kar) 18
Legal and Judicial Perspectives - Courts have intervened when tenders were canceled arbitrarily or without proper reasons, especially where there was a suspicion of favoritism or procedural lapses. For instance, in 2023 0 Supreme(Jhk) 1496, the court found that canceling the tender to favor a particular contractor was illegal. In
Harshidhi Security Services vs Delhi Development Authority - Delhi
, the court observed that the petitioner’s tender was canceled due to ambiguity, and the petitioner was free to participate in subsequent tenders. 2023 0 Supreme(Jhk) 1496,Harshidhi Security Services vs Delhi Development Authority - Delhi
General Principles - The overarching principle is that tenders can be canceled if there are valid procedural reasons, non-compliance, or legal violations. Cancellation after partial work completion is permissible if done fairly and transparently, but arbitrary cancellations without clear grounds are subject to judicial review. Multiple sources
Analysis and Conclusion:Based on the sources, a tender can be canceled even after a contractor has completed half of the work, provided the cancellation is justified by valid procedural or legal reasons. Arbitrary or unfair cancellations, especially those motivated by favoritism or without proper grounds, are liable to judicial scrutiny. Courts have upheld cancellations where procedural lapses or non-compliance are evident, but have invalidated cancellations lacking transparency or proper justification.
In the world of construction and , tenders form the backbone of project execution. But what happens when a contractor has already completed half the work? Can the issuing authority still pull the plug? The question, Can the Tender be Cancelled when the Contractor has Completed Half of the Work? arises frequently in disputes between authorities and contractors. This blog post dives into the legal principles, court precedents, and practical considerations governing such scenarios. Note: This is general information based on case law and not specific legal advice. Consult a qualified attorney for your situation.
Tender processes are governed by , rules, and principles of fairness and transparency. Authorities typically retain discretion to cancel tenders, but this power is not absolute—especially after work has commenced. Cancellation after partial completion, such as half the work, hinges on contractual clauses, performance diligence, and justifiable reasons.
Generally, tenders can be cancelled pre-award for administrative reasons, like insufficient bidders or procedural lapses. Post-award, when work is underway, cancellation requires stronger grounds to avoid claims of arbitrariness. Courts scrutinize such actions to ensure they align with and contract terms. 2018 0 Supreme(Ori) 621
Authorities have the discretion to cancel if contractors fail to meet stipulated conditions. For instance, in a notable case, a tender was cancelled because the contractor did not satisfy and quoted an unreasonably low price. The court upheld this, stating the authority acted justifiably by issuing a fresh tender. 2018 0 Supreme(Ori) 621
Even with half the work done, lack of diligence or non-compliance can justify cancellation. If a contractor completes only half but lags on timelines or quality, authorities may invoke . Courts have supported this where progress is not diligent. 2018 0 Supreme(HP) 1612 2015 0 Supreme(Del) 2569
Tender agreements often mandate adherence to timelines and standards. Failure here provides grounds for cancellation. As seen in cases where contractors defied directions, re-tenders were issued for remaining work: After re-tender, the remaining work has been completed by another contractor. 2019 0 Supreme(Jhk) 964
Non-submission of (PG) also triggers termination: In case the contractor fails to submit the requisite PG even after 60 days from the date of issue of LOA, the contract shall be terminated duly forfeiting EMD and other dues... The failed contractor shall be debarred from participating in re-tender for that work. 2019 0 Supreme(Mad) 1552 2017 0 Supreme(Ori) 390
Cancellation must not be arbitrary. Authorities need documented reasons, emphasizing transparency. Courts stress this: reasons must be provided to withstand scrutiny. 2022 0 Supreme(Ori) 154
In one instance, a tender was cancelled during : The respondents cancelled the tender during stating that none of the participants succeeded in the technical bid. 2024 0 Supreme(Mad) 373
Completion Status and Standards: Half completion doesn't bar cancellation if work falls short on quality, timelines, or compliance. Authorities monitor progress to identify issues early. 2018 0 Supreme(HP) 1612
Diligence and Performance: Lack of diligent progress is critical. Courts have allowed termination where contractors failed despite partial execution, leading to re-tenders. 2019 0 Supreme(Jhk) 964
Single Bidder or Procedural Issues: Tenders are often cancelled for only one qualified bidder: The tender had been cancelled because of only one contractor being qualified for .
Manikchand And Co. VS State of Manipur - Manipur
Sub-Contractor Implications: Even sub-contractors performing work may face indirect impacts if main tenders are cancelled. 2025 Supreme(Online)(Bom) 4102
Risks: Failed contractors risk exclusion: You are also debarred to participate in future tender for the subjected work. 2016 0 Supreme(Del) 256
Courts have addressed cancellations despite partial work. In scenarios with non-compliance or single bidders, cancellations were upheld: Tender Cancellation Due to Non-Compliance and Single Bidders. 2024 0 Supreme(Cal) 1074 2023 0 Supreme(Jhk) 1496 2025 0 Supreme(Ker) 1656
Partial work doesn't preclude action if justified: Cancellation Despite Work Completion or Partial Work. Courts invalidated arbitrary cancellations but permitted fair ones. 2023 0 Supreme(Gau) 1446 2024 0 Supreme(Kar) 18
Judicial intervention occurs for favoritism or lapses: Canceling to favor another bidder is illegal. 2023 0 Supreme(Jhk) 1496 Ambiguous cancellations allow re-participation.
Refunds of EMD post-cancellation are common: Courts direct refunds upon closure. 2024 0 Supreme(Mad) 373
Fresh tenders follow cancellations, even same-day: the said tender came to be cancelled... who issued a fresh tender for the work on the same day. 2022 Supreme(Online)(Chh) 1628
If cancelled without justification, contractors can challenge in court, particularly after significant progress. Courts may quash arbitrary decisions: If a tender is cancelled without proper justification, the contractor may challenge the decision in court. 2023 0 Supreme(HP) 327
However, proven non-compliance weakens claims. Authorities must communicate reasons clearly to mitigate challenges.
For Authorities:- Document all performance issues and communications.- Monitor progress regularly to justify actions.- Consult legal counsel pre-cancellation.
For Contractors:- Adhere strictly to timelines and standards.- Maintain records of diligence and compliance.- Seek clarifications early to avoid disputes.
Yes, a tender can generally be cancelled even after a contractor completes half the work, provided there are justifiable reasons like non-compliance, lack of diligence, or procedural needs. Courts uphold such actions when transparent and documented but strike down arbitrary ones. 2022 0 Supreme(Ori) 154 2023 0 Supreme(HP) 327
Key Takeaways:- Discretion exists but demands justification. 2018 0 Supreme(Ori) 621- Partial completion isn't a shield against termination for poor performance. 2018 0 Supreme(HP) 1612 2015 0 Supreme(Del) 2569- Transparency prevents judicial interference.- and are real risks. 2019 0 Supreme(Mad) 1552
By understanding these principles, stakeholders can navigate tender processes more effectively. Always prioritize compliance and documentation.
References:2018 0 Supreme(Ori) 621 2018 0 Supreme(HP) 1612 2015 0 Supreme(Del) 2569 2022 0 Supreme(Ori) 154 2023 0 Supreme(HP) 327 2024 0 Supreme(Mad) 373 2019 0 Supreme(Jhk) 964 2019 0 Supreme(Mad) 1552
Manikchand And Co. VS State of Manipur - Manipur
2017 0 Supreme(Ori) 390 2016 0 Supreme(Del) 256 2024 0 Supreme(Cal) 1074 2023 0 Supreme(Jhk) 1496 2025 0 Supreme(Ker) 1656 2023 0 Supreme(Gau) 1446 2024 0 Supreme(Kar) 182022 Supreme(Online)(Chh) 1628 2025 Supreme(Online)(Bom) 4102 #TenderCancellation, #ContractLaw, #LegalTenders
It is true that no contractor can continue to work without any income of his own. 9. The question is whether the authority rightly cancelled the said tender notice and went for a re-tender. Non-compliance of Section X resulted in the cancellation of the tender notice. ... Thus, it was within the jurisdiction of the authority to take a decision as to whether a contractor....
He submits that the respondents, by re-tendering the work, has impliedly cancelled the agreement of the petitioner, which is illegal. ... Whimsically on grounds, which are absolutely nonest, the contract of the petitioner has been cancelled and fresh tender for the same work was floated. 14. Considering what has been held above, we are inclined to allow this writ petition. ... Issuing fresh tend....
This Court vide a common order dated 03.08.2023 directed the 3rd respondent to refund the EMD money deposited in the cancelled tender. Upon refund of the EMD money in the cancelled tender to the petitioner, the said WP got closed by this Court. 9. ... The respondents cancelled the tender during June, 2023 stating that none of the participants succeeded in the technical bid. The #HL_START....
Subsequently, the tender was cancelled and Ext.P6 re-tender notification was issued. 3. The petitioner again submitted Ext.P7 bid. There were more bids this time. ... The petitioner responded to Ext.P1 notice of tender. Clause 8 of Appendix A to Ext.P1 mandated that Contractor shall be listed with MES in Class A and above. ... As the estimated cost of work is Rs.6,10,00,000/-, only Contr....
The petitioner claims to be registered Class-I (C) Contractor under the PHE Department. He had participated in a tender process in which his offer was found to be valid and accordingly issued a preliminary Work Order on 24.05.2023. ... This Court is unable to accept the submission made on behalf of the Department that the Work Order can be cancelled without assigning any reasons thereof. ... As per the sa....
Though, it has been contended by the learned counsel for the Petitioner that the tender was cancelled by the Respondent/DDA only to extend benefit to the existing contractor, the said argument does not cut any ice as there is nothing on record to substantiate the said argument. ... f) It is further stated that the Respondent had neither awarded the tender nor cancelled it. Aggrieved by the same, the Pet....
Petitioner is a sub-contractor, who was already performing work for the Respondent-Corporation. ... That the entity on whose behalf the Petitioner was performing work of sub-contractor has participated in the tender process and therefore Petitioner’s participation in the tender must also necessarily be inferred. ... Several bidders submitted their bids in pursuance of the Tende....
Pursuant to termination of contract, the Board has called for fresh tender and work order was about to be handed over to the successful tenderer for completing the work. Even that is not challenged, despite a tender notification is already issued for the same work. ... 50.2 Fundamental breaches of Contract include, but shall not be limited to the following: a. the Contractor stops #HL_S....
Since the same was not so given when the first tender notice came to be issued, the tender process was cancelled. ... However on 03.09.2019 the petitioner was informed by an E-mail that Tender No.82861 had been cancelled by the Department. According to the petitioner there was a direction to re-tender the work in question. ... The petitioner, a registered cont....
However, the said tender came to be cancelled by the Respondent - Bilaspur Smart City Ltd. on 25.07.2020 who issued a fresh tender for the work on the same day. The Petitioner - Raipur Construction Pvt. ... we have interdicted), there remained only one bidder whose rate was found to be Rs. 2.5 Crores above L1 and hence, the Second tender was cancelled leading to issuance of the Third #HL....
After re-tender, the remaining work has been completed by another contractor. Since the work allotted to the petitioner was not completed by it, the respondent- Corporation was compelled to issue re-tender for completion of the same. The petitioner failed to perform in terms with the stipulation made in the agreement by defying several directions issued by the competent authorities of the respondent Corporation. The work allotted to the petitioner was relating to the construc....
Extension of time for submission of PG beyond 30 days and upto 60 days from the date of issue of LoA, the contract shall be terminated duly forfeiting EMD and other dues, if any payable against that contract. The failed contractor shall be debarred from participating in re-tender for that work”
Firstly, the 1st NIT was issued by the Chief Engineer on 20-10-2014 in respect of the package No. MNO 555 and although two contractors participated in the tender process, only one was found to be eligible for financial bid when the technical bid was opened. The tender had been cancelled because of only one contractor being qualified for financial bid; Secondly, 2nd NIT was issued on 27-12-2014 by the Chief Engineer and three contractors participated in the tender process. The....
In case the contractor fails to submit the requisite PG even after 60 days from the date of issue of LOA, the contract shall be terminated duly forfeiting EMD and other dues, if any payable against that contract. The failed contractor shall be debarred from participating in re-tender for that work.”
You are also debarred to participate in future tender for the subjected work. In case the contractor fails to submit the requisite PG even after 60 days from the date of issue of LOA, the contract shall be terminated duly forfeiting EMD and other dues, if any payable against that contract. In case the contractor fails to submit the requisite PG even after 60 days from the date of issue of LOA, the contract shall be terminated duly forfeiting EMD and other dues, if any payable against that cont....
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