Individual interest can’t override public interest in tender matters: HC

Srinagar, Jan 1: The High Court of J&K and Ladakh has held that individual interests in a tender matter being important must be safeguarded but the same should not override the public interest.

A bench of Wasim Sadiq Nargal held this while dismissing two aggrieved transporters plea regarding tender notice floated by the public sector undertaking on transportation of petroleum products and LPG gas through J&K and other states.

“The scope of interference by the Constitutional Courts in tender matters is minimal and confined to the extent when there is arbitrariness, irrationality, and unreasonableness, mala fide or bias,” the court said.

In its verdict, the court  pointed out that the “conditions of the tender cannot  be tailor made to suit the eligibility of a party, who is ineligible in terms of the tender conditions and such party has no vested right to challenge the terms and conditions being ineligible.”

The tender making authority, the court says, has an expertise in technical and administrative field, thus, is the best person to frame the terms and conditions.

“The Court having no expertise cannot direct the tender making authority to frame the conditions in a way to suit the eligibility of a particular party who is being ousted from the consideration zone by virtue of being ineligible”, it said.

While the court observed that the individual interests in a tender matter such as fairness, contractual rights and due process are important and must be safeguarded, it said the interests should not override the public interest.

Public procurement must be conducted in a manner that serves the public good, ensuring transparency and efficiency, it said.

“Therefore the Courts are tasked with ensuring that the decision made by public authorities aligns with the broader goals of public welfare and any interference must be justified by clear demonstration of public interest.”

In response to whether a party who has participated in the tender process could challenge the terms and conditions of the tender, the court said: “By participating in the bidding process, the bidder implicitly agrees to the rules, conditions, and requirements outlined in the tender document”.

Therefore, the court said, no opportunity is left with the party to challenge the same at a later stage, as the party accepts the terms and conditions of the same and waives off right while being silent during or before participating in the tender process.

The court said that the stand of the Supreme Court was clear in various authoritative pronouncements in this regard.