Court Affirms Executive's Authority in Structuring Tender Conditions, Denies Petition for Mandated Reservations
In a significant ruling, the Patna High Court has dismissed the writ petition filed by Ritesh Ranjan, seeking judicial intervention to mandate a 15% reservation of tender work for unemployed engineers under the Rural Road Strengthening and Management Programme in Bihar. The Division Bench, comprising Justices Sudhir Singh and Shailendra Singh, upheld the executive's prerogative in determining tender conditions and structuring public contracts.
The petitioner, an unemployed engineer registered as a Class-III contractor, argued that the state authorities had clubbed multiple road projects into larger packages, thereby excluding smaller contractors like him from participating. Citing policy documents and resolutions aimed at providing opportunities to unemployed engineers, Ranjan sought the court's directive to enforce reservation in tender allotments.
However, the court observed that the structuring of tenders and determination of eligibility criteria are policy decisions within the executive's domain, and judicial review is limited to examining the legality of the process. The court emphasized that it cannot compel the state to structure tenders in a particular manner unless it is shown to be arbitrary or unconstitutional.
The judgment referenced several Supreme Court precedents, including Tata Cellular v. Union of India and Jagdish Mandal v. State of Orissa, reiterating that the courts should not interfere in policy decisions unless there is clear evidence of mala fides or arbitrary actions. The court noted that the state had permitted participation through Joint Ventures and relaxed eligibility conditions to broaden participation, thereby not violating constitutional provisions.
Ultimately, the court ruled that the policy intent to provide opportunities to unemployed engineers does not create an enforceable right to mandate reservations in tender allocations. The writ petition was dismissed, affirming the state's authority to structure tenders based on administrative and policy requirements.
Bottom line:-
Tender structuring and eligibility conditions fall within the executive's policy domain, and judicial review is limited to examining the legality of the process. Courts cannot compel the State to structure tenders in a particular manner or impose reservation unless the policy is shown to be manifestly arbitrary or unconstitutional.
Statutory provision(s): Article 226 of the Constitution of India
Ritesh Ranjan v. State of Bihar, (Patna)(DB) : Law Finder Doc id # 2905680
