High Court of Bombay at Goa Dismisses Petition Challenging Tender Cancellation for Canteen at Ravindra Bhavan — No Right to Claim Continuation of Contract After Expiry of Term. The court held that no vested right accrues until contract is awarded, and cancellation of tender for public interest is not arbitrary under Articles 226 and 227 of the Constitution of India.

High Court: Bombay High Court Bench: GOA
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Case Note & Summary

The petitioner, Jude E. Pereira, filed a writ petition under Articles 226 and 227 of the Constitution of India seeking a mandamus to direct the respondents to open the financial bid and finalize the award of contract for running the canteen at Ravindra Bhavan, Margao, Goa. The petitioner had been running the canteen under a license which expired on 31st March 2012, after which he continued as a monthly licensee. A tender notice was issued, but the tender process was cancelled by the respondents. The petitioner claimed that the cancellation was arbitrary and that he had a right to have the financial bid opened. The respondents argued that the cancellation was in public interest and that the petitioner had no vested right. The court held that no right accrues to a bidder until the contract is awarded, and the cancellation of a tender for valid reasons is not arbitrary. The court also noted that the petitioner's license had expired and he was only a monthly licensee, with no right to continue. The petition was dismissed with no order as to costs.

Headnote

A) Constitutional Law - Writ Jurisdiction - Articles 226 and 227 of the Constitution of India - No vested right to contract - The petitioner, a canteen contractor, sought mandamus to open financial bids and award contract after tender cancellation. The court held that no right accrues until contract is awarded, and cancellation of tender for public interest is not arbitrary. (Paras 3-6)

B) Contract Law - Tender Process - Cancellation of Tender - No right to claim continuation - The petitioner's license had expired and he was a monthly licensee. The court held that the petitioner cannot claim any right to continue running the canteen after expiry of the term. (Paras 3-6)

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Issue of Consideration

Whether the petitioner had a vested right to have the financial bid opened and contract awarded after the tender process was cancelled, and whether the High Court should interfere under writ jurisdiction.

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Final Decision

The petition is dismissed. Rule discharged. No order as to costs.

Law Points

  • Tender cancellation
  • No vested right to contract
  • Writ jurisdiction under Articles 226 and 227
  • Public interest in fair tendering process
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Case Details

2013:BHC-GOA:176-DB

Writ Petition No. 779 of 2012

2013-01-23

V.M. Kanade, U.V. Bakre

2013:BHC-GOA:176-DB

S.D. Lotlikar, H. Kankonkar, S. Dhargalkar, D. Pangam, R. Gawthankar

Jude E. Pereira

State of Goa, Directorate of Art and Culture, Ravindra Bhavan, Adhik Naik Usgaonkar

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Nature of Litigation

Writ petition under Articles 226 and 227 of the Constitution of India seeking mandamus to open financial bid and award contract for running canteen.

Remedy Sought

Petitioner sought direction to respondents to open financial bid and finalize award of contract, and restraining respondent No.3 from interfering with petitioner's running of canteen.

Filing Reason

Petitioner claimed that the tender process for running canteen at Ravindra Bhavan was cancelled arbitrarily, and he had a right to have the financial bid opened.

Issues

Whether the petitioner has a vested right to have the financial bid opened and contract awarded after cancellation of tender. Whether the High Court should interfere under writ jurisdiction in matters of tender cancellation.

Submissions/Arguments

Petitioner argued that cancellation of tender was arbitrary and he had a right to have the financial bid opened. Respondents argued that cancellation was in public interest and petitioner had no vested right.

Ratio Decidendi

No right accrues to a bidder until the contract is awarded. Cancellation of a tender for valid reasons in public interest is not arbitrary. The petitioner, whose license had expired, cannot claim any right to continue running the canteen.

Judgment Excerpts

By this petition which is filed under Articles 226 and 227 of the Constitution of India, the petitioner had initially claimed the following two reliefs... Heard by consent.

Procedural History

The petitioner filed Writ Petition No. 779 of 2012 in the High Court of Bombay at Goa. The petition was heard on 23rd January 2013 and dismissed.

Acts & Sections

  • Constitution of India: Articles 226, 227
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High Court High Court of Bombay at Goa Dismisses Petition Challenging Tender Cancellation for Canteen at Ravindra Bhavan — No Right to Claim Continuation of Contract After Expiry of Term. The court held that no vested right accrues until contract is awarded, ...