Case Note & Summary
The petitioner, Shri Ganesh Carriers, a registered government contractor, participated in a tender process for transportation of foodgrains in Nagpur district for the period 2013-2016. The petitioner's quoted rates were found to be 271% more than the base rates, leading to rejection of its tender by the higher competent authorities on 9th July 2014. Subsequently, the District Supply Officer recommended negotiations, but the respondents rejected the offer again and issued a fresh retender notice dated 2nd December 2014. The petitioner filed a writ petition seeking quashing of the retender notice and acceptance of its earlier tender. The court held that the State authority has the domain to accept or reject any offer, and the reasons provided for rejection were not arbitrary or malafide. The court also noted that acceptance of similar tenders in other areas does not compel acceptance of the petitioner's tender. The petition was dismissed, and the retender notice was upheld.
Headnote
A) Tender Law - State's Discretion - Rejection of Highest Bid - The State authority has the domain and control to accept or reject any offer; rejection of petitioner's tender on ground of rates being 271% more than base rates is not arbitrary or malafide. (Paras 3-4) B) Tender Law - Judicial Review - Non-Interference - Courts will not interfere with tender process unless there is illegality or mala fides; mere acceptance of similar tenders in other areas does not compel acceptance of petitioner's tender. (Para 3)
Issue of Consideration
Whether the retender notice dated 2nd December 2014 for transportation of foodgrains is liable to be quashed and whether the petitioner's earlier tender should be accepted being the lowest.
Final Decision
Writ petition dismissed. Rule discharged. No order as to costs.
Law Points
- State's discretion in accepting or rejecting tenders
- non-interference by courts in contractual matters unless illegality or mala fides
- rejection of highest bid not arbitrary if reasons given
