Arbitrary Alteration of Tender Conditions - Courts have consistently emphasized that any modifications to tender conditions or process after bid submission must be fair, transparent, and non-arbitrary. Alterations that appear unreasonable or discriminatory can lead to legal invalidation or quashing of re-tender notices State of Mizoram VS Vatech Escher Wiss Flovel Ltd. - Gauhati, Deepika Transports rep. by its Properietrix V. Revathy VS General Manager, Dindigul Co-operative Milk Producers Union Ltd. - Madras, Thyssenkrupp Industries India Pvt. Ltd. VS State of Tamil Nadu - Madras.
Fairness and Transparency in Tender Process - The courts have held that authorities must exercise their discretion within legal bounds, ensuring decisions such as cancellation, re-tendering, or rejection of bids are justified, non-arbitrary, and based on valid grounds. Arbitrary cancellations or re-tender calls are liable to be struck down C S SOMAN vs STATE OF KERALA - Kerala, Deepika Transports rep. by its Properietrix V. Revathy VS General Manager, Dindigul Co-operative Milk Producers Union Ltd. - Madras.
Rejection and Acceptance of Bids - Bids must conform to tender conditions, including submission formats and eligibility criteria. Rejections based on technical non-compliance or illegibility are upheld if they follow the tender rules strictly. Acceptance of lowest bids is permissible provided the process remains fair and within legal bounds Abu Construction, rep. by its Proprietor VS Commissioner, Attur Municipality - Madras, Baroda Road Tankers VS Deputy General Manager-Lpg North Zone Hindustan Petroleum Corporation Ltd. - Delhi, Master Enterprise vs Food Corporation Of India - Gujarat.
Court’s Role in Ensuring Fairness - Judicial review acts as a safeguard against arbitrary decisions, with courts scrutinizing whether alterations or cancellations were justified and whether the process adhered to statutory rules such as the Tamil Nadu Transparency in Tenders Act and Rules Deepika Transports rep. by its Properietrix V. Revathy VS General Manager, Dindigul Co-operative Milk Producers Union Ltd. - Madras, Thyssenkrupp Industries India Pvt. Ltd. VS State of Tamil Nadu - Madras.
Conclusion - Tender alterations after bid submission are deemed arbitrary and unlawful if they lack transparency, fairness, or violate established rules. Authorities must exercise discretion judiciously, ensuring decisions are well-founded and non-discriminatory, failing which courts are likely to intervene and invalidate such actions State of Mizoram VS Vatech Escher Wiss Flovel Ltd. - Gauhati, Deepika Transports rep. by its Properietrix V. Revathy VS General Manager, Dindigul Co-operative Milk Producers Union Ltd. - Madras.
References:
- State of Mizoram VS Vatech Escher Wiss Flovel Ltd. - Gauhati
- Deepika Transports rep. by its Properietrix V. Revathy VS General Manager, Dindigul Co-operative Milk Producers Union Ltd. - Madras
- Abu Construction, rep. by its Proprietor VS Commissioner, Attur Municipality - Madras
- Thyssenkrupp Industries India Pvt. Ltd. VS State of Tamil Nadu - Madras
- C S SOMAN vs STATE OF KERALA - Kerala
- Ramchandra Murarilal Bhattad VS State Of Maharashtra - Supreme Court
- Devsaria Iron & Steel Co Private Limited VS State Of West Bengal - Calcutta
- M/S ARDESHIR B CURSETJEE & SONS LTD vs BHARATH PETROLEUM CORPORATION LTD - Kerala
- Baroda Road Tankers VS Deputy General Manager-Lpg North Zone Hindustan Petroleum Corporation Ltd. - Delhi
- Master Enterprise vs Food Corporation Of India - Gujarat
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The court held that the rejection of the Baroda group's bids was not arbitrary and discriminatory, as the tender conditions clearly ... Whether the rejection of the Baroda group's bids was arbitrary and discriminatory? 2. ... argued that the rejection of their bids on the ground of mismatch between the prime mover capacity and the trailer capacity was arbitrary ... for striking down such action of the executive as is proved to be arbitrary or unreasonable. ... The Malik and Balwan Singh groups in their ....
and was disqualified for not meeting eligibility due to illegible document submissions, despite attempts to rectify the issue by ... (A) Manual for Procurement of Goods, 2017 - Clauses 3.10, 8(h), 8(j), and 8(k) - Tender application for contractor disqualified due ... (Paras 3, 8, 34, 39) ... ... (B) Judicial review in tender ... re-submission of documents in one tender and rejecting the same in another tender i.e. the present one. ... As per Contract Manual Clause 3.10 - Seeking A....
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