AI Overview...
- Second Lowest Tenderer - Main Points and Insights
- Courts have recognized that the administration possesses discretion to favor re-tendering or to award contracts to the second lowest tenderer, especially when the lowest tenderer is deemed unqualified or their bid is invalid due to issues like forged documents. For example, in ABDUL MUJEEB P vs FAISAL A K Advocate -SRI BABU S NAIR - Kerala, the court upheld the discretion of the authorities to prefer re-tendering over awarding to the second lowest tenderer if the lowest was disqualified.
- The validity of negotiations and award decisions involving the second lowest tenderer depend on whether the process was fair, transparent, and based on proper evaluation. In Saikhom Raghumani Singh VS Chief Engineer -I, P. W. D. and others - Gauhati, acceptance of the second lowest tenderer was deemed arbitrary and invalid, leading to cancellation.
- Awarding to the second lowest tenderer can be justified if the authority applies its mind properly and the decision is not arbitrary. In AJOYA KUMAR PRADHAN VS STATE OF ORISSA - Orissa, the court found that the authority's decision to award to the second lowest tenderer, who had reduced his bid, was well-founded and not faulted.
- Courts have also examined whether the second lowest tenderer had a legitimate expectation of award, but generally, the decision is upheld if the process was fair. In NU CALCUTTA CONSTRUCTION COMPANY VS NATIONAL ALUMINIUM COMPANY LTD. - Orissa, the court refused to interfere with the decision to award to the second lowest tenderer, despite the petitioner’s expectation.
- Challenges based on allegations of unfairness, nepotism, or corruption are scrutinized, but courts often uphold the award if the process was conducted properly. For instance, in Ferro Concrete Construction (India) Private Limited VS Rajasthan State Electricity Board - Rajasthan, the award to the second lowest tenderer was considered valid despite allegations of unfairness.
- Negotiations with the second lowest tenderer, bypassing the lowest, are permissible if justified and transparent. As seen in K. Veeraiah VS Food Corpn. of India, Hyderabad - Andhra Pradesh, such negotiations were deemed arbitrary and unjustified when conducted without proper basis.
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Situations where the second lowest tenderer declines to execute the contract or negotiate further are also considered, and courts typically uphold the authority's discretion if the process was transparent, as in Siba Prasad Padhi VS State of Orissa - Orissa.
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Analysis and Conclusion
- The second lowest tenderer can be awarded contracts if the lowest tenderer is disqualified or unqualified, and the decision is made following fair and transparent procedures.
- Courts generally support the authority’s discretion to choose the second lowest tenderer, provided the process is not arbitrary or biased.
- Proper evaluation, application of mind, and adherence to rules are critical in validating such awards.
- Challenges based on fairness or expectations are often dismissed if procedural fairness is maintained, emphasizing the importance of transparent tender processes.
References: - ABDUL MUJEEB P vs FAISAL A K Advocate -SRI BABU S NAIR - Kerala - J. P. Construction VS State Of Bihar - Patna - Saikhom Raghumani Singh VS Chief Engineer -I, P. W. D. and others - Gauhati - K. Veeraiah VS Food Corpn. of India, Hyderabad - Andhra Pradesh - AJOYA KUMAR PRADHAN VS STATE OF ORISSA - Orissa - AJOYA KUMAR PRADHAN VS STATE OF ORISSA - Orissa - NU CALCUTTA CONSTRUCTION COMPANY VS NATIONAL ALUMINIUM COMPANY LTD. - Orissa - Ferro Concrete Construction (India) Private Limited VS Rajasthan State Electricity Board - Rajasthan - Duryodhan Pradhan VS State - Orissa - Siba Prasad Padhi VS State of Orissa - Orissa
Search Results for "Second Lowest Tenderer"
2017 Supreme(Online)(KER) 31739 • India - High Court of Kerala
K VINOD CHANDRAN, J
Issues: Whether the second lowest tenderer had a right to the tender award despite the lowest tenderer being deemed unqualified ... lowest qualified tenderer, arguing that the lowest tenderer was unqualified. ... Ratio Decidendi: The administration has discretion to favor re-tendering over awarding to the second lowest tenderer, substantiated ... There can be no contention that....
2007 0 Supreme(Pat) 1121 • India - Patna
MRIDULA MISHRA
lowest tenderer. ... Issues: Direction for work order issuance based on petitioner's claim of being the second lowest tenderer Ratio Decidendi ... lowest tenderer after the lowest bidder's documents were found to be forged. ... The petitioner was not the lowest tenderer but he claims to be the second lowest tenderer. ... However, if the representation, as claim....
1998 0 Supreme(Gau) 141 • India - Gauhati
P.K.SARKAR
the second lowest tenderer. 2. ... lowest tenderer. ... Whether the negotiated rate with the second lowest tenderer was just, reasonable, and proper. Ratio Decidendi: 1. ... lowest tenderer. ... The acceptance of the second lowest tenderer is arbitrary and invalid and therefore, such acceptance of tender is liable to be cancelled. ... With the rejection of the t....
1989 0 Supreme(AP) 198 • India - Andhra Pradesh
SARDAR ALI KHAN
Whether the FCI's negotiations with the second lowest tenderer, bypassing the lowest tenderer, were valid and justified. 2. ... in the presence of the lowest and second lowest tenderers. ... The court held that the FCI's decision to overlook the lowest tenderer and negotiate with the second lowest tenderer was arbitrary ... , who is the #HL_STA....
1998 0 Supreme(Ori) 8 • India - Orissa
P.K.TRIPATHY, S.N.PHUKAN
However, the contract was awarded to the second lowest tenderer, who also reduced the amount. ... lowest tenderer. ... lowest tenderer and that it could not be faulted. ... ... The above would show that the authority applied its mind while awarding the contract to the second lowest tenderer and it cannot be faulted. ... 5. ... Therefore, it was decided to give the contract to the second #HL_STAR....
1998 0 Supreme(Ori) 9 • India - Orissa
S.N.PHUKAN, P.K.TRIPATHY
However, the contract was awarded to the second lowest tenderer on the grounds that the petitioner did not possess the necessary ... Issues: Whether the authority's decision to award the contract to the second lowest tenderer was arbitrary and unreasonable ... Finding of the Court: The court held that the decision of the authority to award the contract to the second lowest ... "the above would show that the authority applied its mind while awardin....
2000 0 Supreme(Ori) 126 • India - Orissa
P.K.MOHANTY, P.K.MISRA
The petitioner claimed to be the second lowest tenderer and expected to be favored with the work order. ... Whether the petitioner, as the second lowest tenderer, had a legitimate expectation of being favored with the work order. ... The court refused to interfere with the dispute between the private tenderers. ... The petitioner having quote (-) 30. 80% was the second lowest. The lowest tenderer ....
1987 0 Supreme(Raj) 827 • India - Rajasthan
NAVIN CHANDRA SHARMA
the award of the contract to the second lowest tenderer, respondent No. 4, alleging unfairness, arbitrariness, nepotism, and favouritism ... WRIT PETITION - Contract for excavation and slope treatment work - Lowest tenderer's bid rejected - Award of contract to second ... lowest tenderer - Validity - Principles governing distribution of State largesse - Public interest - Expertise and competence of ... Mean while, it is alleged that respondent No. 4, who was #HL_START....
2007 0 Supreme(Ori) 149 • India - Orissa
L.MOHAPATRA
lowest tenderer, was awarded with the work without giving any declaration that his father who is present petitioner was involved ... CORRUPTION ACT, 1988 - Sec. 13(2) read with Sec. 13(1)(c) - Commission of offence under - Tender - Son of the petitioner who is the second
2004 0 Supreme(Ori) 20 • India - Orissa
A.S.NAIDU
tenderer declined to execute the agreement - O.P.No. 5, the second lowest tenderer was called upon for negotiation - O.P.No. 5 intimated ... in writing that he was unable to reduce his rate - Thereafter negotiation with the petitioner, who was the third lowest tenderer ... II - Appendix IX - Executive Instructions - Page 30 - Tender for awarding contract work - Negotiation - Award of work - First lowest ... When the first lowest tenderer#HL....
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