HC declines to interfere in tendering process for e-auctioning of six multilevel parking sites


Today, a division bench of Delhi High Court decline to interfere in recalling the entire e-auction tendering process for e-auctioning of six multilevel parking sites by South Delhi Municipal Corporation in its jurisdiction.

Two separate writ petition filed by Manmeet Singh and Rajesh Kumar Singh on similar grievances that South Delhi Municipal Corporation (in short, ‘SDMC’), vide communications dated 19.06.2020, had decided to recall the entire e-auction tendering process in respect of NIT No.116 dated 16.03.2020 regarding six multilevel parking sites and due to this action of SDMC petitioners will incurred huge financial losses.

Justice Hima Kohli and Justice Subramonium Prasad observed that “on examining the decision making process adopted by the respondent/SDMC for recalling the earlier NIT and advertising a fresh NIT, we do not find any infirmity therein; nor do we propose to examine with a tooth comb, the fresh terms incorporated in the NIT subsequently advertised by the respondent/SDMC. Evaluating the terms and conditions of the tender and awarding the contract are purely commercial functions left best to the wisdom of the respondent/SDMC. We are satisfied that the respondent/ SDMC has recalled the previous tender for just and valid reasons. A scrutiny of the records bears out the submission made on behalf of the respondent/SDMC that the decision taken in this regard is not tainted with arbitrariness, perversity, irrationality, malafides or any bias. Merely because the petitioners claim that they would suffer financial losses on account of losing the tender, is not sufficient ground for this court to exercise powers of judicial review in their favour.”

The contention of the petitioner is that on 13.05.2020, the e-auction had taken place, wherein the petitioner was successful in respect of two bids relating to the Kalkaji and Hauz Khas multilevel parking sites. We may note that the petitioner in W.P.(C) 4020/2020 was declared as H1 in respect of the New Friends Colony (two floors) parking and the Munirka multilevel parking, the court said. On 15.05.2020, two letters of offer were issued to the petitioner in respect of the two parking sites, which were unceremoniously cancelled on 19.06.2020, intimation whereof was received by the petitioner in the late hours of 22.06.2020.

Senior Counsel Mr. A. S. Chandiok appearing for one of the petitioner submits that the petitioner had complied with the terms and conditions laid down in the Offer letter dated 15.05.2020, the said document ceased to remain an offer letter and ought to be treated as a concluded contract.

Read the judgment;


-India Legal Bureau

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