Case Note & Summary
The appellant, Karnataka Power Corporation Limited, a government company under Article 12 of the Constitution, filed a writ appeal against an order of a learned Single Judge dated 16.3.2023 in W.P.No.3813/2023. The Single Judge had set aside the appellant's decision to cancel the tender process initiated by notifications dated 4.12.2022 and 7.2.2023, and directed the appellant to take the tender submitted by the respondents (a consortium of Kanchan India Limited and EMTA Coal Limited) to its logical conclusion within four weeks. The appellant contended that the tender process was cancelled due to procedural irregularities and that a fresh tender was issued. The respondents argued that the cancellation was arbitrary and that they had a legitimate expectation that their tender would be considered. The Division Bench allowed the appeal, holding that the Single Judge erred in issuing a writ of mandamus. The court observed that the appellant's decision to cancel the tender and issue a fresh one was not shown to be arbitrary or mala fide. The court emphasized that judicial review in tender matters is limited and that a writ of mandamus cannot be issued to compel acceptance of a tender when the process has been validly cancelled. The impugned order was set aside, and the appeal was allowed.
Headnote
A) Constitutional Law - State under Article 12 - Writ of Mandamus - Tender Process - The appellant, being an entity under Article 12 of the Constitution of India, is amenable to writ jurisdiction. However, a writ of mandamus cannot be issued to compel the acceptance of a tender when the tender process has been cancelled for valid reasons and a fresh tender has been issued. The court's interference in tender matters is limited to cases of arbitrariness, mala fides, or violation of statutory provisions. (Paras 1-3) B) Tender Law - Cancellation of Tender - Judicial Review - The cancellation of a tender process and issuance of a fresh tender notification is an administrative decision that can be challenged only on grounds of unreasonableness, arbitrariness, or mala fides. In the absence of such vitiating factors, the court should not substitute its own decision for that of the tendering authority. (Paras 2-3) C) Writ of Mandamus - Scope - Legitimate Expectation - A writ of mandamus cannot be issued to enforce a mere expectation or to compel the performance of a contractual obligation that has not crystallized. The respondents had no vested right to have their tender processed after the cancellation of the tender process. (Paras 2-3)
Issue of Consideration
Whether the learned Single Judge was justified in issuing a writ of mandamus directing the appellant-Corporation to take the tender submitted by the respondents to its logical conclusion, despite the Corporation having cancelled the tender process and issued a fresh tender notification.
Final Decision
The appeal is allowed. The impugned order of the learned Single Judge dated 16.3.2023 in W.P.No.3813/2023 is set aside. The writ petition filed by the respondents stands dismissed.
Law Points
- Article 12 of the Constitution of India
- Writ of Mandamus
- Tender Law
- Judicial Review of Administrative Action
- Cancellation of Tender
- Legitimate Expectation
