Bombay High Court Allows Writ Petition Challenging Rejection of Tender on Technical Grounds - Tender Rejection Set Aside Due to Non-Application of Mind and Violation of Principles of Natural Justice

High Court: Bombay High Court Bench: AURANGABAD In Favour of Accused
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Case Note & Summary

The petitioner, M/s Ravindra Narayan Choudhari, a proprietorship firm, filed a writ petition under Articles 226 and 227 of the Constitution of India before the Bombay High Court, Bench at Aurangabad, challenging an order dated 17.06.2017 passed by the respondents, Rashtriya Chemicals and Fertilizers Ltd. (RCF), a Government of India Undertaking, rejecting the petitioner's tender bearing No. ETENDERHTDONDAICHA201617 on technical grounds. The tender was floated for handling and transportation of fertilizers at Dondaicha Rake point to destinations in Dhule and other districts. The petitioner submitted his tender along with necessary documents, and after a pre-bid meeting on 22.11.2016, the respondents sought additional documents, which the petitioner provided. Subsequently, on 25.03.2017, the respondents sought clarification regarding M/s Hemant Warehousing Corporation, which the petitioner clarified. Despite this, the tender was rejected on 17.06.2017 on technical grounds. The petitioner contended that the rejection was arbitrary, without application of mind, and violative of principles of natural justice as no opportunity of hearing was given. The respondents filed an affidavit-in-reply, but the petitioner did not admit its contents. The court, after hearing both sides, found that the rejection order did not disclose any reasons and appeared to be a non-speaking order. The court held that the respondents had not applied their mind and had violated principles of natural justice. Consequently, the court allowed the petition, set aside the impugned order, and directed the respondents to reconsider the petitioner's tender afresh after giving him an opportunity of hearing. The court also directed that the reconsideration be completed within four weeks from the date of the order.

Headnote

A) Constitutional Law - Writ Jurisdiction - Article 226 of the Constitution of India - Tender Rejection - The court examined whether the rejection of a tender on technical grounds without proper application of mind and without affording an opportunity of hearing was arbitrary and illegal. Held that the rejection was set aside and the respondents were directed to reconsider the tender afresh after giving an opportunity of hearing to the petitioner (Paras 1-10).

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Issue of Consideration

Whether the rejection of the petitioner's tender on technical grounds by the respondents was arbitrary, illegal, and violative of principles of natural justice, warranting interference under Article 226 of the Constitution of India.

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Final Decision

The court allowed the writ petition, set aside the impugned order dated 17.06.2017, and directed the respondents to reconsider the petitioner's tender afresh after giving an opportunity of hearing to the petitioner. The reconsideration was to be completed within four weeks from the date of the order.

Law Points

  • Principles of natural justice
  • non-application of mind
  • tender rejection
  • technical grounds
  • writ of mandamus
  • Article 226
  • Article 227
  • Constitution of India
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Case Details

2017 LawText (BOM) (07) 67

Writ Petition No. 8257 of 2017

2017-07-06

S.C. Dharmadhikari, Mangesh S. Patil

Mr. D.S. Bagul (for petitioner), Mr. R.F. Totla (for respondents)

M/s Ravindra Narayan Choudhari (Proprietor: Ravindra Narayan Choudhari)

Rashtriya Chemicals and Fertilizers Ltd. (RCF) through its Marketing Officer and Regional Manager

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Nature of Litigation

Writ petition under Articles 226 and 227 of the Constitution of India challenging rejection of tender on technical grounds.

Remedy Sought

Petitioner sought a Writ of Mandamus or any other appropriate writ to quash the order dated 17.06.2017 rejecting his tender and to direct the respondents to accept the tender.

Filing Reason

The petitioner's tender was rejected on technical grounds without proper application of mind and without affording an opportunity of hearing.

Previous Decisions

The respondents had sought additional documents and clarifications from the petitioner, which were complied with, but the tender was still rejected on 17.06.2017.

Issues

Whether the rejection of the petitioner's tender on technical grounds was arbitrary and illegal? Whether the respondents violated principles of natural justice by not giving an opportunity of hearing before rejecting the tender? Whether the impugned order suffers from non-application of mind?

Submissions/Arguments

Petitioner argued that the rejection was arbitrary, without application of mind, and violative of principles of natural justice as no opportunity of hearing was given. Respondents filed an affidavit-in-reply, but the petitioner did not admit its contents and proceeded on the basis of denials.

Ratio Decidendi

The rejection of a tender on technical grounds without any reasons and without affording an opportunity of hearing is arbitrary and violative of principles of natural justice, warranting interference under Article 226 of the Constitution of India.

Judgment Excerpts

Petitioner is seeking a Writ of Mandamus or any other appropriate Writ under Article 226 of the Constitution of India, as also a Writ under Article 227 of the Constitution of India impugning the order passed by the respondents on 17.06.2017 whereby the tender submitted by him bearing No. ETENDERHTDONDAICHA201617 has been rejected on technical grounds. The rejection order does not disclose any reasons and appears to be a non-speaking order. The respondents have not applied their mind and have violated principles of natural justice.

Procedural History

The petitioner submitted his tender on 30.11.2016. The respondents sought additional documents and clarifications, which were provided. On 17.06.2017, the tender was rejected on technical grounds. The petitioner then filed the present writ petition on an unspecified date. The court reserved judgment on 28.06.2017 and pronounced on 06.07.2017.

Acts & Sections

  • Constitution of India: Article 226, Article 227
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