Delhi High Court
Insituform Pipeline ... vs New Delhi Municipal Council on 15 February, 2021
$~
* IN THE HIGH COURT OF DELHI AT NEW DELHI
Date of Decision: 15.02.2021
+ W.P.(C) 509/2021
INSITUFORM PIPELINE REHABILITATION PRIVATE
LIMITED ..... Petitioner
Through Mr. Tarang Agrawal, Adv.
versus
NEW DELHI MUNICIPAL COUNCIL ..... Respondent
Through Mr. Anil Grover, Standing Counsel
for the New Delhi Municipal Council.
CORAM:
HON'BLE MR. JUSTICE VIPIN SANGHI
HON'BLE MS. JUSTICE REKHA PALLI
VIPIN SANGHI, J (ORAL)
1. The petitioner has preferred the present writ petition seeking the
following reliefs:
"(a) issue a writ of mandamus and/or certiorari and/or
any other appropriate writ/order/direction in the nature
thereof quashing the impugned notice dated 04.01.2021
issued by the Respondent in relation to the Project and all
acts/actions taken by the Respondent in furtherance thereto;
(b) issue a writ of mandamus and/or any other
appropriate writ/ order/direction in the nature thereof
directing the Respondent to award the work contract in
relation to the Project to the Petitioner in pursuance to the
evaluation of Petitioner's bid on 10.09.2020;
(c) call for complete records pertaining to the impugned
notice dated 04.01.2021 and erstwhile NIT dated
20.08.2020 in relation to the Project, including all
correspondences/communications/file notings/internal
Signature Not Verified
Signed By:GARIMA MADAN
Signing Date:17.02.2021
12:12:28
communications etc. in relation thereto;"
2. We have heard learned counsel for the parties and therefore proceed
to dispose of the writ petition.
3. The Sewerage Maintenance Division, Civil Engineering Department
of the respondent/New Delhi Municipal Council issued a notice inviting
tenders (NIT) on 20.08.2020 in relation to the project in question i.e.
"Rehabilitation of existing 1100-1200 mm Dia Sewer Line at Ashoka Road
from Nirvachan Sadan to C-Hexagon".
4. As per the NIT, the estimated cost of the project was
Rs.16,61,35,617/- with the time of completion being six months. The
petitioner and some other bidders submitted their bids in response to the
NIT. The petitioner also deposited earnest money of Rs.33,22,712/- in terms
of the NIT. After technical evaluation, only two bidders namely the
petitioner and one M/s Gypsum Structural were found eligible for opening
of their financial bids. Upon opening of the financial bids, the petitioner
was found to be the Lowest Bidder (L1). Despite the petitioner being the L1
bidder, the respondent sought to impliedly cancel the tender process by way
of notice dated 04.01.2021, inviting fresh bids for the same work and at the
same estimated cost. At that stage, the petitioner approached this Court by
filing the present writ petition. The grievance of the petitioner was that
despite being the L1 bidder and technically qualified, the respondent
suddenly, without any communication or reason, decided to drop the
ongoing tendering process, and invited fresh bids all over again.
5. On 13.01.2021, this Court, while issuing notice in the petition, had
restrained the respondent from proceeding with NIT dated 04.01.2021, and
Signature Not Verified
W.P.(C) 509/2021
Signed By:GARIMA MADAN
Signing Date:17.02.2021
12:12:28
had also directed the respondent to produce before the Court the original
records relating to the NIT in question. On 22.01.2021, which was the next
date, we examined the record produced before us and passed the following
order:
"In accordance with our directions given in the last
order, the original record relating to the tender in question
has been circulated.
From a perusal of the same, it appears that the
petitioner was found to be qualified in all respects and in fact,
its financial bid was also found to be acceptable. The matter
was to be placed before the Council as Agenda Item No. 15 (A-
11) in its meeting dated 26.12.2020. There is a note by Mr. D.
Sengupta, H.A. (CS) dated 21.12.2020to this effect, which
alsostates that the file may be returned to the office of CE(C-
1). Thereafter, the next note of CE(C-1) is of 12.01.2021,
stating that "Council's decision may please be intimated".The
matter was filed and taken up by this Court upon urgent
mentioning on the very same day i.e. 13.01.2021. The
respondents were aware of the filing of the petition, having
been served with an advance copyon 13.01.2021.
We may also refer to the note dated 13.01.2021 of Mr. D
Sengupta H.A. (CS), which reads as under: -
"As desired by the Deptt., it is stated that the item on the
subject : "T/M of sewer line in NDMC area. SH:
Rehabilitation of existing 1100-1200 mm dia sewer line at
Ashoka Road from NirvachanSadan to C Hexagon." was
placed before the Council vide item No. 15 (A-11) in its
meeting dated 26.12.2020. The decision taken by the Council,
against this item is as under :-
Item Subject Council's Decision
No.
15 T/M of sewer line in NDMC After due
(A- area. SH: Rehabilitation of deliberations it was
Signature Not Verified
Signed By:GARIMA MADAN
Signing Date:17.02.2021
12:12:28
11) existing 1100-1200 mm dia decided by the
sewer line at Ashoka Road Council to retender
from NirvachanSadan to C the case.
Hexagon
It is further resolved
by the Council that
the Department may
initiate further
necessary action in
the anticipation of
confirmation of the
Minutes.
The minutes of the Council Meeting dated 26.12.2020 is
being placed before the next meeting of the Council for
confirmation thereof.
If approved, we may return the file to Chief Engineer (Civil-1)
please.
s/d by
Mr. D. Sengupta
The aforesaid shows that the NDMC purportedly held a
meeting on 26.12.2020 and considered the award of the tender
vide item No. 15 (A-11). The decision of the Council, as
appearing from this note, was not to accept the petitioner's bid
and instead retender the work. No reasons for the same are
found in the noting sheet. In fact, the recommendation
contained in the agenda note was to approve the tender of the
petitioner for the work in question. The Agenda also
contained a draft resolution which reads:"Resolved by the
Council for accord of approval of tender of M/s Insituform
Pipe Line Rehabilitation Pvt. Ltd for an amount of Rs.
17,00,43,000/- for the work of rehabilitation of existing 1100-
1200 mm dia sewer line at Ashoka Road from NirvachanSadan
to C- Hexagon by adopting CIPP (Cured in Place Pipe)
technology. It is further resolved by the Council that the
department may initiate further necessary action in
Signature Not Verified
W.P.(C) 509/2021
Signed By:GARIMA MADAN
Signing Date:17.02.2021
12:12:28
anticipation of confirmation of the Minutes of the Council"
The Agenda Item No. 15 (A-11) along with the Council's
decision are placed on record at page 130-132. This
document, though signed by Mr. D. Sengupta Secretary,
NDMC, does not bear any date. There are several other
endorsements made on this document which are all after
13.01.2021, the date when the matter was taken up by this
Court. The earliest endorsement is of 15.01.2021 and
thereafter there is an endorsement of 18.01.2021.
On the note sheet, at pages 34 and 35, there is a noting of
13.01.2021 prepared by Er. S.S. Sharma, EE(SM). The same is
also relevant, and reads as under:
"Name of work: T/M of sewer line in NDMC area during
2020-21.
Sub-Head: Rehabilitation of existing 1100-1200 mm
dia sewer line
alongAshoka Road from NirvachanSadan to C
Hexagon.
As per the discussion held during last Council Meeting on
26.12.2020 it was conveyed to undersigned by seniors &
subsequently directed to recall the tender of the above
captioned project immediately in anticipation of confirmation
Council Minutes.
Considering the very poor condition of existing 1100-1200 mm
Np-2 Class pipe and prone to the recent settlement of the cited
sewer line at Ashoka Road- Man Singh Road Round About, it
was directed by the Competent Authority to recall the tender
immediately with the condition that the newly called tender
will not be approved till the written confirmation from Council
is received.
In view of the above, the NIT was again floated on 04.01.2021
with date of opening as 13.01.2021. i.e. today by 3:30 PM. The
ASC of Delhi High Court Sh. Anil Grover called the office of
CE(C-I) on 13.01.2021 by 1:00 PM informing that the L1
agency M/s Insituform Pipeline Rehabilitation Pvt Ltd. Has
approached to Delhi High Court against the decision of the
Council and on urgent mentioning today that following is
decided in the Court.
Signature Not Verified
Signed By:GARIMA MADAN
Signing Date:17.02.2021
12:12:28
"the petitioner has challenged the notice inviting Tender
dated 04.01.2021 on the ground that the department for the
same work had earlier issued NIT dated 20.08.2020 and in
which it was the lowest bidder. The department without
rejecting the previous NIT and without giving any reasons,
issued another NIT for the same work and thus the action of
Department is arbitrary and whimsical. The undersigned
appeared on behalf of the Department and accepted notice.
The Hon'ble Court after going through the records of writ
petition direct the department to produce records pertaining to
NIT dated 20.08.2020 and further directed the Department not
to go ahead with the NIT dated 04.01.2021 till further orders.
The Original record is to be provided to the Hon'ble Court by
20.01.2021 and the matter is listed for arguments of
22.01.2021.
You are therefore requested not to go ahead with the NIT dated
04.01.2021 and further requested to provide the original
records pertaining to NIT dated 20.08.2020 to the undersigned
at the earliest so that the same can be provided to the court
master of Hon'bleMr. Justice VipinSanghi.
Copy of writ petition is enclosed herewith and order dated
13.01.2021 will be provided as soon as available. This is for
your necessary and immediate action."
and as per the direction of Higher Authorities the NIT dated
04.01.2021 is cancelled immediately.
The decision of the Council is received today as under :-
Item Subject Council's Decision
No.
15 T/M of sewer line in NDMC After due
(A- area. deliberations it was
11) SH: Rehabilitation of decided by the
existing 1100-1200 mm dia Council to retender
sewer line at Ashoka Road the case.
from NirvachanSadan to C
Hexagon It is further resolved
Signature Not Verified
W.P.(C) 509/2021
Signed By:GARIMA MADAN
Signing Date:17.02.2021
12:12:28
by the Council that the
Department may
initiate further
necessary action in
the anticipation of
confirmation of the
Minutes.
The previously called tender is still not rejected online. All the
relevant documents in original are called by the High Court by
20.01.2021 and the next date of hearing is 22.01.2021.
Submitted for kind information of Competent Authority please.
s/d by
(Er. S.S. Sharma)
EE(SM)"
Pertinently, even this note is also of 13.01.2021 itself.
The aforesaid clearly shows that there are absolutely no
reasons to be found on the record as to why the tender was not
awarded to the petitioner, despite the NDMC itself proposing
the award of the work in its favour.
Secondly, what raises doubts in our mind is the fact that
on the date when the petition was filed and listed, i.e.on
13.01.2021, there are several file notings which refer to the
decision of the Council taken as early as on 26.12.2020;
however, between 26.12.2020 and 13.01.2021, there is nothing
placed on record to say that such a decision was indeed taken
by Council in its meeting on 26.12.2020.
We, therefore, direct the respondent to file a
comprehensive affidavit in the matter, which affidavit should
bring on record the express reasons for cancellation, if any,
as were placed before the Council. As noticed hereinabove,
the decision of the Council itself is completely bereft of
reasons, and it may not be permissible to now offer reasons
not forming the basis for the decision taken.
The respondent should also place on record the
Signature Not Verified
Signed By:GARIMA MADAN
Signing Date:17.02.2021
12:12:28
relevant records relating to the holding of the Council
Meeting on 26.12.2020, which should disclose as to how and
when the said meeting was called; how notices were issued to
the members of Council for holding the said meeting; the
complete log of all such notices and circulation of agenda of
the meeting; and the relevant extracts of the minute book of
the Council in relation to Agenda Item No. 15 (A-11). It
should be disclosed whether the meeting was held physically,
or virtually and, if held physically, when and where the same
was held and who all attended the meeting. It should be
disclosed when the decision of the Council was
communicated and how it was communicated. It should also
be disclosed as to why the same was not communicated till
13.01.2021.
Mr. Grover states that the original records would be
required by the respondents for filing a detailed counter
affidavit. We direct the Court-Master to make copies of the
complete record handed over by the respondent. The copies
should be arranged in the same manner in which the
original file is arranged. Copies shall be circulated to the
Bench as well as counsel for the petitioner and thereafter,
the original record shall be returned to Mr. Grover by
27.01.2021.
Counter Affidavit be filed within two weeks. Rejoinder,
if any, be filed before the next date of hearing.
Interim orders to continue.
List on 15.02.2021." (emphasis supplied)
6. In pursuance of the directions issued by us, the respondent/NDMC
has placed its counter affidavit on record. The case of the respondent, as
emerging from its counter affidavit, is that a meeting of the Council was
scheduled to be held on 01.12.2020, but was postponed to 26.12.2020 due to
administrative reasons. The said meeting was presided over by the Hon'ble
Chief Minister of Delhi. Alongwith its counter affidavit, the respondent has
also placed on record the agenda as well as the minutes of the Council's
Signature Not Verified
W.P.(C) 509/2021
Signed By:GARIMA MADAN
Signing Date:17.02.2021
12:12:28
meeting held on 26.12.2020.
7. The agenda item circulated for the meeting held on 26.12.2020 placed
before the Council is relevant and the same reads as follows:
"ITEM NO. 15 (A-11)
1. Name of the subject/ Project:
Name of the Project: -T/M of sewer line in NDMC area.
Sub-Head:- Rehabilitation of existing 1100-1200 mm dia
sewer line at Ashoka Road from Nirvachan Sadan to C
Hexagon.
2. Name of the Department / departments concerned:
Civil Engineering, Public Health Circle, Sewer Maintenance
Division.
3. Brief History of the subject/ Project:
The sewer line from Bhai Veer Singh Marg (Kali Bah Marg)
is of 600-838 mm dia line which has already been
rehabilitated till Nirvachan Sadan in the year 2011. The
same line 1100 mm 1150 mm - 1200 mm dia is continuing
from Nirvachan Sadam to C-Hexagon, which is
approximately 1.936 km and is under consideration for
rehabilitation. This line was laid around 1977 and more than
40 years old and being NP2 Class RCC pipe, it has already
outlived the prescribed life of about 30 years and hence
getting damaged at several places as had also been
technically studied /examined by IIT Delhi in the year 2011
and recommended for its rehabilitation with CIPP Liner on
dated 14.02.2011. Accordingly M/s TTI Consulting Engineers
(I) Pvt. Ltd. i.e. Consultant already appointed for seeking pre
and post consultancy for this project has submitted the
detailed estimate and draft NIT amounting, to
Rs.17,44,33,872/- and Rs. 16,60,80,046/-, respectively at NP-
01 vide their Letter No. TT1/NDMC/EE(5P)/SBS/ 05082020a
Signature Not Verified
Signed By:GARIMA MADAN
Signing Date:17.02.2021
12:12:28
dated 05.08.2020.
Considering the frequent collapse of about 40 years old NP2
Class RCC sewer pipes, it was proposed by the department to
get it rehabilitated urgently to avoid, any further collapse or
mishap. Due to emergent condition, it was approved by the
Council vide Resolution No.35(A-06) dt,04.08.2020 for
Approval In Principle for rehabilitation work of sewer line
along Ashoka Road, from Nirvachan Sadan to C Hexagon,
Council has approved the proposal for Rs. 20.00 crores
against the aforesaid item no. for cited project and directed
to call Short Notice Inviting Tender, it has also decided to
expedite tendering process and award of work.
Therefore Detailed Estimate amounting to Rs. 17,11,20,000/-
and draft NIT amounting to Rs. 16,61,35,617/- has been
Technically Sanctioned and approved from the competent
authority on dt. 20.08.2020 at NP-07. Accordingly tender,
was invited through e-procurement system on dt. 20.08.2020
with date of opening as 04.09.2020 at NP-08. Three bidders
participated in the tender i.e. M/s Gypsum Structural India
Pvt. Ltd., M/s Onsite India Pvt. Ltd. and M/s Insituform
Pipe; Line Rehabilitation Pvt. Ltd. Scanned tender
documents of all the bidders submitted to Consultant on dt.
04.09.2020 and Technical Comparative Statement was
subsequently prepared and submitted by the consultant.
Technical Evaluation Sub- Committee was held on
07.09.2020 and 08.09.2020 & two bidder i.e. M/s Gypsum
Structural India Pvt. Ltd. and M/s Insituform Pipe Line
Rehabilitation Pvt. Ltd. were found technically eligible for
opening of financial bid at NP-15. Financial bids were
opened on dt. 10.09.2020 and M/s Insituform Pipe Line
Rehabilitation Pvt. Ltd., emerged the lowest quoted bidder
with quoted rate @ 2.35% above with quoted amount as
Rs.17,00,43,000/- at NP-16.
Justification checked by Main Planning @ 0.01& above EC
i.e. Rs. 16,61,52,231/- with 5age of tendered cost over
Signature Not Verified
W.P.(C) 509/2021
Signed By:GARIMA MADAN
Signing Date:17.02.2021
12:12:28
justified cost as 2.34% above & case recommended for
acceptance of L-1 offer @ 2.35% above (within variation of
5% over justified rates) by Main Planning on dt. 25.09.2020
at NP-20. Finance had observed the case on 08.10.2020
which have been replied by the department concurred the
proposal on dt. 09.10.2020 with remarks "Keeping in view
the position as brought out at NP-26, F.D. concurs in the
proposed award to L-1 i.e. M/s Instuform Pipe Line
Rehabilitation Pvt. Ltd. At proposed award to tendered cost
of Rs. 17,00,43,000/- which is above EC of Rs.
16,61,35,617/- & 2.34% above justified cost (of Rs.
16,61,52,231/-) worked out at 0.01% above EC". (at NP-27)
4. Detailed Proposal of the Subject/ Project :-
Proposal consisting of rehabilitation of 1100-1200 mm dia
sewer line of length 1936 cm by CIPP Liner Method
including, site survey, plugging and flow diversion, de-
sitting pre-lining CCTV survey, rehabilitation of manholes,
rectified settled / sunken sewer including construction of
manhole, testing & commissioning and restoration of road
complete.
5. Financial Implication of proposed Subject/Project :-
The expenditure for rehabilitation of 1100-1200 mm dia
sewer line is Rs. 17,00,43,000/- The expenditure will be
charged to Chart of Account 52-20-35-006 under T/M of
sewer lines in NDMC area.
6. Implementation Schedule with timeliness for each
stage including Internal processing:-
Detailed Estimate : Approved on 20 August 2020
NIT : Approved on 20 August 2020
Call of Tender : Called on 04 September 2020
Award of Work : October 2020
Completion Period : 6 months after award of
work.
7. Final Comments of the Finance Department on the
Subject with diary no. & date:-
Signature Not Verified
Signed By:GARIMA MADAN
Signing Date:17.02.2021
12:12:28
The Finance Dept.vide diary No.2289/Finance, dt.
09.10.2020 concurred with the proposed award in r/o
execution of subject work to L-1 agency, i.e., M/s
Insituform Pipe Line Rehabilitation Pvt. Ltd. at their
quoted rates of Rs. 17,00,43,000/- which is 2.35% above
the estimated cost of Rs. 16,61,35,617/- and 2.34% above
the justified cost of Rs. 16,61,52,231/- worked out at 0.01%
aboce estimated cost. The department may submit the
proposal for consideration of competent authority i.e.
Council and further details of the Finance concurrence
placed at Annexure-A (See pages 83-85).
8. Legal Implication of the subject/ project:-
NIL
9. Details of previous Council Resolutions, Existing law
of Parliament and Assembly on the subject:-
Administrative approval and expenditure sanction for
Rs. 20 Crores was accorded by the council vide Resolution
No. 35(A-06) dated 04.08.2020 and subsequently Detailed
Estimate amounting to Rs.17,11,20,000/- technically
sanctioned on dt. 20.08.2020.
10. Final Comments of the Law Department on the
subject/project:-
No legal issue involved in the agenda item as such no
comments.
11. Certification by the department that all central
vigilance commissions (CVC) guidelines have been
followed while processing the case.
It is certified that all the CVC guidelines have been
followed while processing the case.
12. Recommendations:-
Signature Not Verified
W.P.(C) 509/2021
Signed By:GARIMA MADAN
Signing Date:17.02.2021
12:12:28
The case is placed before the Council for the
consideration and accord of approval of tender of M/s
Insituform Pipe Line Rehabilitation Pvt. Ltd for an
amount of Rs.17,00,43,000/- for the work of rehabilitation
of existing 1100-1200mm dia sewerline at Ashoka Road
from Nirvachan Sadan to C Hexagon with the provision to
award the work in anticipation of confirmation of minutes
by the Council.
13. Draft Resolution
Resolved by the Council for accord of approval of
tender of M/s Insituform Pipe Line Rehabilitation Pvt. Ltd
for an amount of Rs.17,00,43,000/- for the work of
rehabilitation of existing 1100-1200 mm dia sewer line at
Ashoka Road from Nirvachan Sadan to C-Hexagon by
adopting CIPP (Cured in Place Pipe) technology. It is
further resolved by the Council that the department may
initiate further necessary action in anticipation of
confirmation of the Minutes of the Council." (emphasis
supplied)
8. The relevant extract of the minutes recorded in relation to the said
NIT reads as follows:
"COUNCIL SECRETARIAT
PALIKA KENDRA : NEW DELHI
MINUTES OF The COUNCIL'S MEETING NO. 03/2020-01
HELD ON 26.12.2020 AT ll-OQ A.M.
IN THE COUNCIL ROOM. PALIKA KENDRA. NEW DELHI
MEETING NO. : 03/2020-21
DATE : 26.12.2020 (SATURDAY) .
TIME : 11-00 A.M.
Signature Not Verified
Signed By:GARIMA MADAN
Signing Date:17.02.2021
12:12:28
PLACE : PALIKA KENDRA, NEW DELHI
PRESENT:
1. - Sh. Arvind Kejriwal - Presiding Officer
2. Smt. Meenakshi Lekhi - Member
3. Sh. Dharmendra - Chairperson
4. Sh. Virender Singh Kadiyan - Member
5. Ms. D. Thara - Member
6. Sh. Vikas Anand - Member
7. Dr. B. M. Mishra - Secretary
xxx xxx xxx xxx xxx
ITEM NO. SUBJECT DECISION
15 (A-11) T/M of sewer line in After due-
NDMC area. deliberations it
SH: Rehabilitation, of was decided ,by
existing "the
1100-1200 mm dia Council to retender
sewer line at the case.
Ashoka Road from
Nirvachan It is further
Sadah to C Hexagon. resolved by the
Council that the
Department may
initiate further
necessary action
in anticipation of
confirmation of the
Minutes.
9. Thus, it would be seen that the Council decided to re-tender the
work without recording any reason as to why the bid of the petitioner,
who was the L1 bidder, was not considered worthy of acceptance by the
Council.
Signature Not Verified
W.P.(C) 509/2021
Signed By:GARIMA MADAN
Signing Date:17.02.2021
12:12:28
10. The agenda would show that the petitioner's bid was found to be
completely acceptable in all respects. In fact, the Finance Department
in its note dated 09.10.2020, which also forms part of the agenda item,
had observed that "it is proposed to award the tender in question to L1
i.e. M/s Insituform Pipeline Rehabilitation Pvt. Ltd. at tendered cost of
Rs.17,00,43,000/- which is 2.35% above estimated cost of
Rs.16,61,35,617/- and 2.34% above justified cost (of Rs.16,61,52,231/-
worked out at 0.01% above estimated cost). The department may
submit the proposal for consideration of Competent Authority i.e.
Council."
11. The submission of Mr. Grover, the learned counsel for the
respondent is that under Clause 13 of the NIT, the respondent Council
was not bound to accept the lowest or any other bid, and it reserved its
authority to reject any or all bids without assigning any reason. He
further submits that the minutes of the Council's meeting dated
26.12.2020 show that there were due deliberations amongst the
members before taking the decision to re-tender the work. However, at
the same time, he does not dispute the position that there are no reasons
found on the record as to why the petitioner's bid was not accepted
despite the recommendation inter alia by the Finance Department.
12. We have considered the rival submissions of the parties. There
can be no quarrel with the proposition that the respondent is not bound
to accept any bid and the lowest/highest bidder, as the case may be, has
no vested right to award of the contract merely because its bid is found
to be otherwise in order.
Signature Not Verified
Signed By:GARIMA MADAN
Signing Date:17.02.2021
12:12:28
13. It is one thing to say that the employer/respondent may not give
reasons for rejection of the lowest/highest bid, as the case may be, it is,
however, another thing to say that the respondent was not even obliged
to have any reason for coming to such a decision. Every decision of the
State has to be implied with reasons. The same cannot be arbitrary,
whimsical or capricious. It is well settled in law that the validity of any
administrative decision must be judged on the basis of reasons existing
on record, and the authority cannot provide new/additional reasons
when the Court calls for them as they must necessarily exist on the
record when the decision is made. In this regard, reference may be
made to the decision of the Supreme Court in Mohinder Singh Gill v.
Chief Election Commissioner, [1978] 1 SCC 405).
14. In the present case, admittedly, the resolution passed by the
Council is completely unreasoned. If the recommendation on the file
itself had been to reject the petitioner's bid, the absence of reasons in
the resolution passed by the Council may not have been necessary,
since the reasons recorded on the file itself could be attributed to the
Council, and that could explain the non-recording of further reasons in
the Council's resolutions; however, in a case where the
recommendation on the file was for acceptance of the petitioner's bid,
and contrary to the said recommendation, the Council decides not to
accept the bid and re-tender the work instead, the Council was certainly
expected to record its reasons for its said decision.
Signature Not Verified
W.P.(C) 509/2021
Signed By:GARIMA MADAN
Signing Date:17.02.2021
12:12:28
15. In the light of the aforesaid, the decision of the Council to re-
tender the work in its meeting held on 26.12.2020 appears to be
arbitrary and cannot be sustained. The same is, accordingly, set aside.
16. The rejection of the petitioner's bid on that premise, and the re-
tendering of the work vide fresh tender notice dated 04.01.2021 is,
consequently, liable to be quashed and the same are, hereby, quashed.
We, however, leave it open to the respondent to take further decision in
the matter in accordance with law.
17. The petition stands disposed of in the above terms.
VIPIN SANGHI, J
REKHA PALLI, J
FEBRUARY 15, 2021
acm
Signature Not Verified
Signed By:GARIMA MADAN
Signing Date:17.02.2021
12:12:28
