Tendering Committee Failed To Perform Functions Properly, Did Not Scrutinize Tender Documents: Allahabad HC Awards Tender To Highest Bidder

The Allahabad High Court has recently awarded tender to the highest bidder who was above the reserve price as the tendering committee had failed to scrutinize tender documents and acted in a lax manner.

Petitioner participated in e-tender-cum-e-auction for short-term permit, also regarding Gata No.62 and 63/1 Area 42.00 acre, Village Khapatiha Kala, Tehsil Pailani, District Banda. Petitioner's bid was the second highest. The petitioner then filed an application stating that the highest bidder had not filed self-attested copies of the Aadhaar Card, Pan Card, and Character Certificate and therefore, its bid was liable to be rejected.

Pursuant to the letter, the Chief Treasury Officer, Banda recommended that a fresh e-auction be conducted as the documents were not scrutinized properly the first time before opening the technical and financial bid. Subsequently, the tender in which the petitioner stood qualified was cancelled and fresh notice was issued. The petitioner challenged this fresh notice before the High Court.

On perusal of the instructions supplied by respondents, the Court observed that the Committee constituted for scrutinizing the documents had not discharged its functions properly. It was observed that the financial bid of the highest bidder who had not filed proper documents was opened on account of laxity by the Committee.

The Court held that the petitioner's bid being valid should have been declared the highest bid.

The bench comprising of Justice Anjani Kumar Mishra and Justice Jayant Banerji observed

“There is also substance in the contention of learned counsel for the petitioner that petitioner is being penalized for no fault on his part, especially when his bid, amongst all valid bids, was the highest. The respondents have tried to gloss over the laxity and dereliction duty on the part of the Committee constituted to process the e-tenders received and the petitioner is being penalized for this fault.”

Accordingly, the Court directed that the tender be awarded to the petitioner as his bid was the highest amongst all valid bids.

Case Title: M/S Suddhtam Enterprises v. State Of U.P. And 5 Others 2024 LiveLaw (AB) 148 [WRIT - C No. - 39170 of 2023]

Case Citation: 2024 LiveLaw (AB) 148

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