Case Note & Summary
The petitioner, M/s H.P. Ghumare, a contractor engaged in water supply through tankers since 2021, participated in an e-tender notice dated 13 July 2023 issued by the District Collector, Beed, for supply of water tankers in Beed district. Eight bidders participated, and all were declared technically qualified. Upon opening of financial bids, the petitioner was declared the lowest bidder (L-1) with a bid 43% below the estimated price. The petitioner expected a work order and submitted a representation for execution of the agreement. However, on 25 September 2023, the petitioner along with two other lowest bidders were invited for negotiations by the tendering authority (Respondent No.4). During the pendency of the writ petition, Respondent No.3 passed an order dated 17/20 November 2023 disqualifying the petitioner, despite his earlier qualification as L-1 bidder. The petitioner amended the petition to challenge this disqualification. The court considered whether the disqualification without affording any opportunity of hearing was arbitrary and violative of natural justice. The court held that the impugned order was passed without any notice or opportunity to the petitioner, thus violating principles of natural justice. The court set aside the disqualification order and directed the respondents to proceed with the tender process in accordance with law, treating the petitioner as L-1 bidder. The court also disposed of the civil application for intervention.
Headnote
A) Constitutional Law - Article 226 - Judicial Review - Disqualification of Bidder - The petitioner challenged the communication disqualifying him as L-1 bidder without prior notice or hearing - Court held that the impugned order was passed in violation of principles of natural justice and set it aside - Held that the tender inviting authority cannot disqualify a bidder without giving an opportunity of being heard (Paras 1-10). B) Tender Law - L-1 Bidder - Disqualification - The petitioner was declared L-1 bidder after technical and financial scrutiny - The respondent issued a notice for negotiations and later disqualified the petitioner without any reason - Court found the action arbitrary and restored the petitioner's status as L-1 bidder - Held that the authority must act fairly and transparently in tender processes (Paras 2-8).
Issue of Consideration
Whether the disqualification of the petitioner, who was declared L-1 bidder, without affording any opportunity of hearing is arbitrary and violative of principles of natural justice?
Final Decision
The court allowed the writ petition, quashed the impugned order dated 17/20.11.2023 disqualifying the petitioner, and directed the respondents to proceed with the tender process in accordance with law, treating the petitioner as L-1 bidder. The civil application for intervention was disposed of.
Law Points
- Principles of natural justice
- Right to be heard before adverse action
- Judicial review of administrative action
- Tender law
- Disqualification of bidder
