High Court of Rajasthan Hears Writ Petitions Challenging Re-Tender of OTS Flyover DPR Consultancy and Withdrawal of Awarded Work. Dispute Concerns Arbitrary Re-Invitation of Tender Despite Prior Award and Completed Work, Allegedly Violating Principles of Natural Justice and Promissory Estoppel.

High Court: Rajasthan High Court Bench: Jaipur
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Case Note & Summary

The High Court of Judicature for Rajasthan, Bench at Jaipur, heard a batch of two writ petitions filed by JCL Infra Private Limited against Jaipur Development Authority and others. The lead case, S.B. Civil Writ Petition No. 8120/2025, challenged the re-invitation of a tender for consultancy services for preparation of a detailed project report (DPR) for an elevated road and flyover at OTS Junction, Jaipur, vide NIB dated 03.04.2025. The connected petition, S.B. Civil Writ Petition No. 17571/2024, challenged the withdrawal of work earlier awarded to the petitioner. The petitioner, a company incorporated under the Companies Act, 2013, had been awarded an EPC contract for traffic improvement and beautification work at OTS Crossing on 14.12.2022, based on a DPR prepared by Sincere Architects Engineers Pvt. Ltd. A contract agreement was executed on 27.12.2022. The petitioner claimed to have mobilized resources and incurred substantial expenditure, completing work worth Rs. 20.41 Crores of a total investment of about Rs. 40 Crores. Despite repeated submissions and requests for approvals and payments, respondents failed to accord site approvals and release payments. On 24.04.2024, respondents withdrew the entire awarded work under Clause 32 of the contract without granting any opportunity of hearing or providing reasons. The petitioner sent legal notices and filed the first writ petition. During pendency, respondents re-invited consultancy bids for the same OTS Flyover segment, prompting the second writ petition. The petitioner argued that re-invitation was arbitrary and violative of promissory estoppel, and that Clause 32 only permitted partial withdrawal, not termination of the entire contract. The court heard arguments and reserved judgment on 23.04.2026, pronouncing the full judgment on 02.06.2026. However, the provided extract ends during the petitioner's submissions and does not include the court's analysis or final decision. The case remains pending for further orders, with other related matters (D.B. SAW/769/2026 and one more) having been filed.

Headnote

A) Tender Law - Re-invitation of Tender - Arbitrary Action - Public Works Financial and Accounts Rules, Part-II - Petitioner challenged re-invitation of DPR consultancy tender for OTS Flyover after work already awarded and executed; alleged violation of promissory estoppel and natural justice; final decision not available in provided text (Paras 1-2.7).

B) Contract Law - Withdrawal of Work - Scope of Clause 32 - Not applicable (contractual clause) - Petitioner contended Clause 32 permits only partial withdrawal, not unilateral termination of entire contract; withdrawal letter dated 24.04.2024 was without opportunity of hearing; final decision not available (Paras 2.6-2.7).

C) Administrative Law - Natural Justice - Opportunity of Hearing - Not applicable (general principles) - Petitioner argued respondents withdrew work without affording any opportunity of hearing or assigning cogent reasons; final decision not available (Paras 2.6).

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Issue of Consideration

Whether re-invitation of tender including OTS Flyover after work already awarded and substantially executed is arbitrary and illegal; whether withdrawal of entire work under Clause 32 of the contract without notice or hearing is valid; whether respondents failed to grant necessary site approvals and payments causing financial prejudice to petitioner.

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Final Decision

Not mentioned in the provided text; the extract ends during petitioner's submissions and does not include the final decision

Law Points

  • Doctrine of promissory estoppel
  • principles of natural justice
  • scope of partial withdrawal under Clause 32
  • arbitrary exercise of power by public authority
  • tender re-invitation after award
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Case Details

2026 LawText (RAJ) (06) 17

S.B. Civil Writ Petition No. 8120/2025 (connected with S.B. Civil Writ Petition No. 17571/2024)

2026-06-02

Sameer Jain

S. S. Hora, Adesh Arora, OP Singh Tanwar, Amit Kuri, Ayush Sharma, Devendra Gupta

JCL Infra Private Limited

Jaipur Development Authority, Commissioner, Jaipur Development Authority, Executive Engineer - ROB/RUB-V

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Nature of Litigation

Writ petitions challenging arbitrary re-invitation of tender for DPR consultancy for OTS Flyover and withdrawal of previously awarded work

Remedy Sought

Petitioner seeks quashing of NIB dated 03.04.2025 insofar as it includes OTS Flyover segment, and revocation of withdrawal letter dated 24.04.2024

Filing Reason

Respondents re-invited tender including OTS Flyover despite work already awarded and executed; respondents withdrew work without hearing or reasons in breach of contract and natural justice

Previous Decisions

No previous decisions mentioned; writ petition SBCWP No. 17571/2024 was pending when NIB was re-invited

Issues

Whether re-invitation of tender including OTS Flyover after work already awarded and substantially executed is arbitrary and violative of promissory estoppel Whether withdrawal of entire work under Clause 32 of the contract without notice or hearing is valid when clause contemplates only partial withdrawal Whether respondents failed to grant necessary site approvals and payments, causing financial prejudice to petitioner

Submissions/Arguments

Petitioner argued that DPR and work for OTS Flyover had already been awarded and executed; re-tender is arbitrary and violative of promissory estoppel Petitioner contended that Clause 32 permits only partial withdrawal, not unilateral termination of entire contract; withdrawal letter dated 24.04.2024 is illegal Petitioner stated that despite repeated submissions and requests, respondents failed to accord site approvals and release payments, causing losses of Rs. 40 Crores investment with Rs. 20.41 Crores work completed

Ratio Decidendi

Not mentioned in the provided text

Judgment Excerpts

In the present batch of writ petitions, the scope of the controversy involved, albeit not limited to but is broadly and predominantly defined as enumerated ad infra the respondents, without affording any opportunity of hearing or assigning cogent reasons, invoked Clause 32 of the contract and withdrew the awarded work vide letter dated 24.04.2024

Procedural History

Petitioner awarded EPC contract vide LoA dated 14.12.2022; Contract Agreement executed on 27.12.2022; petitioner submitted designs and sought approvals; respondents failed to accord approvals; project extension letter dated 04.01.2024; respondents withdrew work vide letter dated 24.04.2024; petitioner sent legal notices dated 10.05.2024 and 26.08.2024; petitioner filed S.B. Civil Writ Petition No. 17571/2024 challenging withdrawal; during pendency, respondents re-invited tender vide NIB dated 03.04.2025; petitioner filed S.B. Civil Writ Petition No. 8120/2025 challenging re-tender; both petitions connected and heard together; D.B. SAW/769/2026 and one more have been filed in this matter; judgment reserved on 23.04.2026 and pronounced on 02.06.2026

Acts & Sections

  • Companies Act, 2013:
  • Public Works Financial and Accounts Rules, Part-II:
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