Case Note & Summary
The petitioner, M/s. Nilkantheswar Build Con, participated in a tender process issued by the respondents (State of Maharashtra and Zilla Parishad authorities) and was declared successful in both technical and financial bids. However, instead of awarding the work order, the respondents issued a re-tender notice dated 02.02.2023, prompting the petitioner to file a writ petition seeking quashment of that notice and a direction to issue the work order. The respondents contested the petition, stating that after the petitioner was found to be the lowest bidder, a complaint dated 11.01.2023 was received against the petitioner regarding eligibility. Additionally, the petitioner himself made a complaint dated 16.01.2023 against another participating party. An enquiry was conducted, and it was found that the petitioner was disqualified because the joint venture agreement was not uploaded online but submitted offline. The authority decided to rectify this mistake by abandoning the tender process and opting for re-tendering. The court considered the issue of whether the authority's decision to cancel the tender was arbitrary. The court held that the tendering authority has discretion to cancel the tender process if there is a mistake or irregularity, and judicial interference is limited to cases of arbitrariness, mala fides, or bias. Since the authority acted to rectify a procedural irregularity, the decision was not arbitrary. The court dismissed the petition, upholding the re-tender notice.
Headnote
A) Public Procurement - Tender Cancellation - Judicial Review - Discretion of Tendering Authority - The court considered whether the authority's decision to cancel the tender process due to a procedural irregularity (non-uploading of joint venture agreement) was arbitrary. Held that the authority has discretion to cancel the tender if there is a mistake or irregularity, and the court's interference is limited to cases of arbitrariness or mala fides. (Paras 1-5) B) Public Procurement - Eligibility Criteria - Joint Venture Agreement - The petitioner was disqualified because the joint venture agreement was not uploaded online but submitted offline. The authority rectified the mistake by abandoning the tender process. Held that the authority's action was within its discretion and not arbitrary. (Paras 4-5)
Issue of Consideration
Whether the tendering authority's decision to cancel the tender process and issue a re-tender notice is arbitrary and liable to be set aside, given that the petitioner was the lowest bidder.
Final Decision
The petition is dismissed. The re-tender notice dated 02.02.2023 is upheld.
Law Points
- Public procurement
- tender cancellation
- judicial review
- discretion of tendering authority
- procedural irregularity
- joint venture agreement
