Allahabad High Court Upholds Tender Process, Dismisses Challenge by Unsuccessful Bidder
Court reaffirms principles of judicial restraint in tender matters, emphasizing timely protest by bidders
In a significant ruling, the Allahabad High Court has dismissed the writ petition filed by Avani Paridhi Energy and Communications Pvt. Ltd., challenging the technical evaluation and the entire tender process initiated by the State of Uttar Pradesh. The Division Bench, comprising Justices Shekhar B. Saraf and Prashant Kumar, ruled that judicial interference in tender processes should be limited and emphasized the importance of raising objections at the earliest opportunity.
The petitioner, Avani Paridhi Energy and Communications Pvt. Ltd., had contended that the tender process was not conducted in accordance with the government mandate dated May 19, 2023. However, the respondents argued that since the petitioner participated in the tender process, they were barred from challenging it subsequently. The court agreed with the respondents, highlighting the principle that unsuccessful bidders must raise objections to tender conditions at the outset.
In its judgment, the court referenced several precedents, including the Supreme Court's rulings in Tata Motors Limited v. Brihan Mumbai Electric Supply & Transport Undertaking and others, reinforcing the notion that judicial review in tender matters should be exercised with caution. The court noted that procedural aberrations or prejudice to a tenderer do not warrant judicial interference unless there is something gross, palpable, or arbitrary.
The petitioner attempted to rely on a judgment from the Uttarakhand High Court, asserting that they had protested before participating in the tender process. However, the Allahabad High Court found that the petitioner's claims of protest remained unsubstantiated, as there was no proof of evidence of service of the protest letter.
The judgment also reiterated that public interest and commercial prudence must take precedence in tender matters, and courts should avoid substituting their decision for that of the employer unless there is overwhelming public interest.
By dismissing the writ petition, the court has reinforced the principle that a bidder who participates in a tender process and is unsuccessful cannot later challenge the tender conditions unless objections were raised at the earliest opportunity.
This ruling is expected to provide clarity and reinforce judicial restraint in tender-related disputes, ensuring that the processes remain efficient and focused on public interest.
Bottom Line:
Judicial review in tender matters - A person who participates in a tender process and is unsuccessful cannot later challenge the tender process or conditions unless something gross or palpable is shown. Unsuccessful bidders must raise objections to tender conditions at the first instance.
Statutory provision(s): Article 226 of the Constitution of India
