HC trashes plea challenging cancellation of tender

Legal Correspondent

Shimla, December 9

The HP High court has dismissed the petition challenging the action of the state by cancelling of the tender for the supply of tools and equipments for vocational laboratories in 300 government senior secondary schools of Himachal Pradesh.

The court passed this judgment on a petition filed by Ambala-based firm M/s Quality Industries Corporation alleging that the cancellation of the tender was illegal and colourable exercise of power, especially in view of the fact that entire process was completed and bids furnished by the petitioner were duly accepted by the technical committee constituted in this regard by the Education Department.

However, on the other hand, the state supported the decision of cancellation of tender passed by the authorities and stated that since entire process initiated by the department for inviting tender in question was in violation of the policy of procurement framed by the Government, wherein material/ specifications provided in the tender in question could only be procured through e-tender, there is no illegality in the cancellation order passed by the department.

While dismissing the petition, a division bench comprising Chief Justice Mansoor Ahmad Mir and Justice Sandeep Sharma observed that “Courts can interfere in tender or contractual matters in exercise of power of judicial review only in case the process adopted or decision made by the authority is mala fide or intended to favour someone or the process adopted or decision made is so arbitrary and irrational that no responsible authority acting reasonably and in accordance with relevant law could have reached and lastly in case the public interest is affected.”

It further observed that “In the instant case, the decision regarding cancellation of the tender is a bona fide one and is otherwise in the larger public interest because by not adhering to e-tendering, rules were violated and as such for a fair and transparent tendering, e-tendering is necessary. Further, e-tendering would increase healthy competition amongst the participants, thereby saving the public exchequer. It is not a fit case to exercise powers of judicial review as there is no violation of the provisions of law and further there is no procedural aberration or error in assessment.”