Case Note & Summary
The petitioners, various Mahila Bachat Gats (women self-help groups) and a trust, had submitted tenders for the supply of supplementary nutrition under the Integrated Child Development Services (ICDS) Scheme in various districts of Maharashtra. The tenders were submitted in response to notices inviting tenders issued by the respective District Nutritional Food Supply Committees. The petitioners were the lowest bidders or otherwise eligible. However, the respondents cancelled the tenders without issuing any show cause notice or affording an opportunity of hearing to the petitioners. The petitioners challenged these cancellations by way of a writ petition under Article 226 of the Constitution of India. The court examined the facts and found that the cancellations were arbitrary and in violation of principles of natural justice. The court held that the state must act fairly and reasonably, and any decision affecting the rights of a person must be preceded by an opportunity of hearing. The court set aside the impugned orders of cancellation and directed the respondents to consider the petitioners' bids afresh after giving them an opportunity of hearing. The court also directed that the entire process be completed within a period of four weeks from the date of the order.
Headnote
A) Administrative Law - Natural Justice - Cancellation of Tender Without Notice - The cancellation of tenders without issuing any show cause notice or affording an opportunity of hearing to the petitioners is arbitrary and violative of principles of natural justice - Held that the impugned orders of cancellation are set aside and the respondents are directed to consider the petitioners' bids afresh after giving them an opportunity of hearing (Paras 10-15). B) Constitutional Law - Article 14 - Arbitrariness in State Action - The state action in cancelling tenders without any valid reasons and without notice is arbitrary and cannot be sustained - Held that the state must act fairly and reasonably (Paras 10-15). C) Contract Law - Tender - Legitimate Expectation - The petitioners had a legitimate expectation that their bids would be considered fairly and not cancelled arbitrarily - Held that the cancellation without hearing violates legitimate expectation (Paras 10-15).
Issue of Consideration
Whether the cancellation of tenders for supplementary nutrition under the ICDS Scheme by the respondent authorities without issuing any show cause notice or affording an opportunity of hearing to the petitioners is arbitrary and violative of principles of natural justice.
Final Decision
The court allowed the writ petition, set aside the impugned orders of cancellation, and directed the respondents to consider the petitioners' bids afresh after giving them an opportunity of hearing. The entire process to be completed within four weeks.
Law Points
- Natural justice
- audi alteram partem
- arbitrariness in state action
- cancellation of tender without notice
- legitimate expectation
- right to be heard
- Article 14
- Article 226
- Integrated Child Development Services Scheme
- supplementary nutrition
