Court Finds Tender Cancellation Unjustified After Bidder Waives Right to Object
In a significant ruling, the Patna High Court has set aside the Bihar State Government's decision to cancel a tender process under the Rural Road Strengthening and Management Program (RRSMP). The judgment, delivered by a division bench comprising Justices Sudhir Singh and Shailendra Singh, found the cancellation arbitrary and unsustainable.
The case arose from the cancellation of a tender process where the petitioner, Kaushal Kishore, was declared the lowest bidder (L-1) for a project under NIT No-RRSMP/10/25-25. The tender was annulled by the Tender Committee on the grounds that a disqualified bidder, Praveen Kumar, was not given adequate opportunity to submit requisite documents. However, Praveen Kumar had waived his right to object or submit the documents prior to the cancellation decision.
The court highlighted the principles of fairness and transparency under Article 14 of the Constitution. It observed that the respondent authorities had not applied their mind and relied on irrelevant and non-existent grounds, thereby violating these principles. The court referred to the doctrine of waiver, emphasizing that a right waived by a party cannot be resurrected to justify cancellation.
Justice Sudhir Singh, delivering the oral order, noted that the decision to cancel the tender process lacked valid reasoning and was arbitrary. The court stated that once the tender process had reached the stage where the petitioner was declared L-1, the authorities were expected to act fairly and reasonably. The reason provided for annulment did not meet this standard.
The ruling underscores the judiciary's role in ensuring that administrative actions, especially in tender processes, conform to fairness and transparency. It serves as a reminder that arbitrary decisions without valid grounds warrant judicial interference.
The court's decision reinstates the petitioner's status as the lowest bidder and directs the continuation of the contract process. This judgment reinforces the importance of adhering to legal principles and procedural fairness in government contracting.
Bottom Line:
Tender process cancellation - Arbitrary decision based on waived objection of a bidder - Doctrine of waiver and principles of fairness and transparency under Article 14 of the Constitution applied - Impugned decision found unsustainable and set aside.
Statutory provision(s): Article 14 of the Constitution of India, Doctrine of Waiver, Principles of Judicial Review
Kaushal Kishore v. State of Bihar, (Patna)(DB) : Law Finder Doc id # 2877209
