Case Note & Summary
The petitioner, Ambika Bahuuddeshiya Gram Vikas Sansthan, a registered NGO, filed a writ petition challenging the order dated 16.8.2012 passed by respondent no.2 (State Mentoring Committee) and communicated on 18.9.2012, whereby respondent no.7 (Youth Awareness and Rural Development - YARD) was selected as the District Nodal Agency for the Community Based Monitoring Project under the National Rural Health Mission in Chandrapur district. The petitioner sought quashing of that order and directions to award the contract to itself. The court examined the evaluation report which considered all four applicant institutions, including the petitioner. The court noted that the selection was made by the State Mentoring Committee after due evaluation and that the petitioner had no right to be selected. The court held that judicial review is limited to examining the decision-making process, not the merits of the decision. There was no allegation of mala fides or arbitrariness in the process. The court dismissed the petition, finding no merit.
Headnote
A) Administrative Law - Judicial Review - Selection of NGO - The court held that judicial review is concerned with the decision-making process and not the merits of the decision. The State's selection of an NGO for a project is a policy decision and cannot be interfered with unless arbitrary or mala fide. (Paras 4-5)
B) Contract Law - Right to Contract - No vested right - The petitioner had no fundamental or legal right to be awarded the contract. The State has discretion to choose the most suitable agency. (Para 5)
C) Natural Justice - No requirement of hearing - In matters of selection of NGOs for government projects, there is no requirement to give a hearing to unsuccessful applicants unless there is a statutory provision or contractual obligation. (Para 5)
Issue of Consideration
Whether the selection of respondent no.7 as District Nodal Agency for Community Based Monitoring Project was arbitrary and illegal, and whether the petitioner had a right to be awarded the contract.
Final Decision
The petition is dismissed. No order as to costs.
Law Points
- Judicial review limited to decision-making process
- not merits
- no right to contract
- state's discretion in selecting NGOs
- no violation of natural justice
Case Details
2014 LawText (BOM) (09) 149
Writ Petition No.4860 of 2012
A.P. Bhangale, C.V. Bhadang
Mr. P.J. Mehta h/f Aditya Satpute for petitioner; Mr. Shyam Ahirkar, A.G.P. for respondent nos.1 to 4
Ambika Bahuuddeshiya Gram Vikas Sansthan
State of Maharashtra and Others
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Nature of Litigation
Writ petition challenging the selection of a District Nodal Agency for Community Based Monitoring Project under NRHM.
Remedy Sought
Quashing of order dated 16.8.2012 selecting respondent no.7 and direction to award contract to petitioner.
Filing Reason
Petitioner claimed it was more suitable and the selection of respondent no.7 was arbitrary.
Previous Decisions
State Mentoring Committee selected respondent no.7 as District Nodal Agency on 16.8.2012, communicated on 18.9.2012.
Issues
Whether the selection of respondent no.7 as District Nodal Agency was arbitrary and illegal?
Whether the petitioner had a right to be awarded the contract?
Submissions/Arguments
Petitioner argued that it was a more suitable NGO and the selection was arbitrary.
Respondents argued that the selection was based on evaluation and was a policy decision.
Ratio Decidendi
Judicial review is concerned with the decision-making process, not the merits of the decision. The State has discretion in selecting NGOs for projects, and unless the process is arbitrary or mala fide, the court will not interfere. The petitioner had no right to be awarded the contract.
Judgment Excerpts
By this petition, the petitioner has prayed to quash and set aside the order passed by respondent no.2, dt.16.8.2012 which was communicated to respondent no.5 vide letter dt.18.9.2012 by respondent nos. 1 and 3.
Our attention is invited to communication dt.18.9.2012 which was addressed to the Chief Executive Officer, Zilla Parishad, Chandrapur by the Commissioner, Family Welfare and Director, National Rural Health Mission, Mumbai for Maharashtra whereby it is informed that, as per order of the Additional Chief Secretary, Primary Health Department, NGO Yard has been selected as District Nodal Agency for Community Based Monitoring Project.
Our attention is also invited to the Evaluation report whereby after inspection of all four institutions representation was made pursuant to inspection.
Procedural History
Petitioner filed Writ Petition No.4860 of 2012 in the High Court of Judicature at Bombay, Nagpur Bench, challenging the order dated 16.8.2012 of the State Mentoring Committee selecting respondent no.7 as District Nodal Agency. The petition was heard and dismissed on 17.9.2014.
