Court Dismisses Petition Challenging Tender Award for Circuit House Construction in Assam
The Gauhati High Court, presided over by Mr. Justice Sanjay Kumar Medhi, has dismissed a petition challenging the validity of a tender process conducted by the Public Works Department (PWD) of Assam for the construction of a Circuit House in Udalguri. The petitioner, M/s Versha Technotrade Pvt. Ltd., alleged that two competing bidders, identified as Respondent Nos. 3 and 4, formed a cartel, thus violating the integrity agreement and vitiating the tender process.
The judgment, delivered on January 9, 2026, emphasized the insufficiency of evidence provided by the petitioner to substantiate claims of collusion among the bidders. The primary evidence presented was a photograph showing representatives of the two respondents together during a mandatory site visit. Justice Medhi clarified that the mere presence of representatives in a common photograph does not constitute a breach of the integrity agreement, as there was no concrete proof of exchange of confidential information, coordination in bid pricing, or any restriction on competitiveness.
The court further noted that the tender's requirement for a site visit did not prohibit different bidders from visiting the site on the same date or time. The submission of site visit certificates was deemed sufficient for compliance, and photographs were not mandatory for validation.
In addressing the petitioner's request to cancel the tender and initiate a fresh process, the court exercised judicial restraint, citing the lack of substantial evidence to challenge the administrative decision-making process. The court also refrained from imposing costs or penalties, despite acknowledging the Supreme Court's caution against unscrupulous litigants obtaining stay orders to hinder public projects, as noted in the case of Raunaq International Ltd. v. I.V.R. Construction Ltd.
The judgment serves as a reminder of the court's stance on maintaining the integrity of administrative processes unless there is clear evidence of irrationality or malfeasance.
Bottom Line:
Tender Process - Allegation of cartel formation among bidders is insufficient without concrete evidence - Mere submission of a common photograph by two bidders to substantiate mandatory site visit does not amount to violation of Integrity Agreement or restrict competitiveness in bidding process.
Statutory provision(s): Article 226 of the Constitution of India, Article 2 (2)(b) of the Notice Inviting Tender (NIT), Clause 6 (1) of "Information and Guidelines for Bidders"
M/s Versha Technotrade Pvt. Ltd. v. State of Assam, (Gauhati) : Law Finder Doc Id # 2836243
