Not mandatory to award contract to lowest or highest bidder: HC
New Delhi: The Delhi High Court has said it
is not mandatory for the government to award contract to the
lowest or highest bidder in a tendering process and had the
option of giving the work to some other party instead.
"Normally, the lowest bidder or the highest bidder, the
case may be, ought to be awarded the contract. But this is not
an absolute rule and the governmental authority can deviate
from this and award the contract to someone other than the
lowest or highest bidder, a bench comprising justices Badar
Durrez Ahmed and Veena Birbal, said.
Emphasising that the decision so made should not be
arbitrary and fanciful, the bench said the government
authority may decide not to award the contract to the either
the lowest bidder or highest bidder or to anyone else and may
decide to scrap the tender and/or call for fresh tenders.
The decision came on the petition filed by a firm seeking
direction to the DDA to award the contract relating to its
project of constructing 50,000 multi-storeyed houses in the
next five years in Narela, Rohini, Dwarka or any suitable
place in Delhi.
The firm had offered bids following an expression of
interest in response to the tender published by the civic body
After several rounds of meetings between the civic body
and various bidders to reach a consensus about various
technical modalities, the DDA in 2009 decided not to award the
contract to any of them.
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