Procedure Compliance - Several sources emphasize that the allotment and tender processes must strictly follow prescribed procedures, including transparency, fairness, and adherence to rules. For instance, the court in Seven Seas Educational Society VS Haryana Urban Development Authority, Panchkula - Punjab and Haryana held that HUDA's allotments lacked uniform criteria and were based on favoritism, violating procedural norms. Similarly, LANCO CONSTRUCTION LTD. VS GOVT. OF A. P. , IRRIGATION DEPARTMENT - Andhra Pradesh highlighted that improper cancellation of tenders without following proper procedures renders the process arbitrary and unreasonable.
Fairness and Non-Favoritism - While detailed procedures are crucial, courts have recognized that when procedures are followed, allegations of favoritism or nepotism are generally unsubstantiated. In SAINIK TRANSPORTERS PVT. LIMITED VS TENUGHAT VIDYUT NIGAM LIMITED - Jharkhand, the court found no infirmity in the decision-making process after examining the adherence to tender conditions. Conversely, findings of favoritism and arbitrariness have led to cancellations, as in City Industrial Development Thr. its Managing Director VS Platinum Entertainment - Supreme Court, where allotments based on nepotism were deemed irrational.
Judicial Oversight and Limits - Judicial review is limited to ensuring procedural fairness rather than substituting judgment on merit. As noted in Sabre GLBL Inc. VS Air India Limited - Delhi, courts emphasize that technical evaluations are primarily within administrative domain, and interference is warranted only if procedures are flagrantly violated.
Obiter Dicta and Precedent - The Constitution of India Popcorn Entertainment Corporation, through is proprietor Shri Nilesh Gala VS City Industrial Development Corporation, Through its Managing Director - Bombay indicates that even obiter dicta of courts are expected to be followed, underscoring the importance of adhering to judicial principles regarding procedural fairness.
Analysis and Conclusion:
A detailed and transparent procedure is fundamental to prevent allegations of favoritism in tender allotments. When authorities strictly follow prescribed procedures—such as issuing tenders, evaluating bids based on merit, and adhering to rules—allegations of favoritism are generally unfounded. Courts tend to uphold the validity of allotments made through proper procedures and scrutinize allegations of favoritism with caution, intervening only when procedural lapses are evident. Therefore, a well-defined, consistently followed procedure in tender allotments effectively safeguards against claims of favoritism.
References: Popcorn Entertainment Corporation, through is proprietor Shri Nilesh Gala VS City Industrial Development Corporation, Through its Managing Director - Bombay, Seven Seas Educational Society VS Haryana Urban Development Authority, Panchkula - Punjab and Haryana, City Industrial Development Thr. its Managing Director VS Platinum Entertainment - Supreme Court, SAINIK TRANSPORTERS PVT. LIMITED VS TENUGHAT VIDYUT NIGAM LIMITED - Jharkhand, LANCO CONSTRUCTION LTD. VS GOVT. OF A. P. , IRRIGATION DEPARTMENT - Andhra Pradesh, Garhwal Region Contractor Welfare Association VS State of Uttarakhand - Uttarakhand, Somnath VS State of Maharashtra - Bombay, Sabre GLBL Inc. VS Air India Limited - Delhi, P.T.SREENIVASAN Vs STATE OF KERALA - Kerala, S. Pandu Ranga Reddy VS Government of Andhra Pradesh - Andhra Pradesh
) Constitution of India-Article 141-Precedent-Obiter dictum- Binding effect -Even an obiter dictum is expected to be obeyed and followed-General ... Generally, even an obiter dictum is expected to be obeyed and followed. Some times well considered obiter dicta of the Supreme Court is taken as precedent, but every passing expression of a judge cannot be treated as an authority [see Saiyada Mossarat v. ... In other words, if the authority under the statutory regulations for disposal of land has the right to consider individual applications ....
followed the prescribed procedure for making the allotments ... The Court found that the HUDA had not followed the prescribed procedure and had not adopted any uniform criterion for making the ... * The allotments were made on the basis of favoritism and arbitrariness. 2. ... Notwithstanding the fact that the respondents had raised constructions, their allotments cannot be permitted to be continued. We do not agree with the finding....
of plots arbitrary and favouritism based on nepotism and was irrational and unreasonable – Cancellation of all the allotments by ... – Section 23 – Land disposal policy mentioning disposal by fixed rate/competitive bidding – However no procedure ... for religious, educational, charitable etc. purposes – Instant allotments for commercial purpose – No consideration of merit of ... Show cause notice was issued mentioning three grounds, viz. favoritism, non-issuance of tender and loss caus....
The court emphasized the importance of fulfilling the conditions of the tender notice and the decision-making process followed by ... The court also examined the decision-making process and found no infirmity in the procedure adopted by the respondent-Nigam in finalizing ... criteria prescribed in the tender notice, the terms and conditions of the tender, and the rejection of the first part of the tender ... From the Minutes, it appears that the respondent-Nigam after following due #HL....
Whether the government had followed the proper procedure for cancelling the tender process? 4. ... arbitrary and unreasonable; (b) the government had not followed the proper procedure for cancelling the tender process. ... The court also held that the government had not followed the proper procedure for cancelling the tender process, as it had not allowed ... Technical Cell of the Commissionerate would scrutinise the tende....
The petitioners also raised concerns about favoritism and nepotism in the tender process. ... They claimed that the bidding documents did not provide detailed site plan, drawing, and other necessary information, making it impossible ... TENDER - E-PROCUREMENT - [Standard Bidding Document for Pradhan Mantri Gram Sadak Yojna (PMGSY) and Uttarakhand Procurement Rules ... The procedure regarding the bid has been mentioned in the standard bidding documents. He submitted that the process has been fo....
According to them, the prescribed procedure was followed for allotment of the plots. ... can be regularized and (2) plots of which allotment as well as locations cannot be regularized, as also the plots which have been ... can be regularized and (2) plots of which allotment as well as locations cannot be regularized, as also the plots which have been ... According to them, the prescribed procedure was followed for allotmen....
(A) Tender Evaluation Process - The petitioner sought the invalidation of the tender award, citing favoritism towards the successful ... found no substantial prejudice that warranted interference in the tender process (Paras 39-49/a ... ... ... (B) Judicial Review - The court emphasized the limited scope of judicial review in tender matters, stressing that the technical ... It has further been stated by the Respondent, that the Petitioner accepted the QCBS procedure and, now after ha....
, and whether the evaluation process followed by the respondents was in compliance with the tender notice and applicable government ... challenging the rejection of his bid for a Public Works Department project on grounds of irregularities in qualification assessment and favoritism ... Tender - Contractor - Public Works Department Manual - Legal provisions outline criteria for bidding qualifications, including ... The consideration of the tenders received and the procedure to be #HL_ST....
(Para 31) ... G) CONSTITUTION OF INDIA, Article 226:- Petitioners cannot ... A) CONSTITUTION OF INDIA, Article 14:- Where the Agricultural Marketing Committee had failed with the tender process in allotting ... the valuable property for installing electronic weigh bridge to the fifth respondent without the due process of the tender, Director ... the procedure in allotting shops-Cum-godowns, respondent No.2 has issued the said circular by laying down uniform terms and procedures to be followe....
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