M/s. Mahadeva Enterprises, Vs the Union of India

“……to issue a Writ, Order or direction more particularly one in the nature of WRIT Of MANDAMUS declaring the action of 2^nd respondent herein in rejecting the petitioner's bid for the E- Auction sale of SCRAP WIND ELECTRIC GENERATORS (WEGs) at KADAVAKALLU (16 NOS X 250 KW = 4 MW) i.e.

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LOT 2, issued vide Tender E-Auction No.81943, dated 16.12.2024, vide Ref.ST:DPS :eauction .07/2024-25 after declaring the petitioner herein as HI-Highest Bidder on 25.12.2024, without assigning any reasons thereto, without issuing any notice to the petitioner herein calling for explanation, without considering the petitioner's representation dated 27.12.2024 and the subsequent action of 2^nd respondent herein in re-conducting the E-Auction sale of same material i.e. SCRAP WIND ELECTRIC GENERATORS (WEGs) at KADAVAKALLU (16 NOS X 250 KW = 4 MW) i.e. Lot 2 vide Tender E-Auction No.81944, scheduled to be conducted on 30.12.2024, as arbitrary, illegal, irrational, colourable exercise of power, besides being unconstitutional and consequently set-aside the E-Auction sale of same material i.e. SCRAP WIND ELECTRIC GENERATORS (WEGs) at KADAVAKALLU (16 NOS X 250 KW = 4 MW) i.e. Lot 2 issued vide Tender E- Auction No.81944 by directing the respondents herein to declare the petitioner herein as highest bidder for the sale of SCRAP WIND ELECTRIC GENERATORS (WEGs) at KADAVAKALLU (16 NOS X 250 KW = 4 MW) i.e. LOT 2.”

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Petitioner firm is doing the business of buying and selling scrap and other materials and inter alia engaged in various civil contractual works. 2^nd respondent – BHEL (Bharat Heavy Electricals Limited), Boiler Auxiliaries Plant (BAP) issued E-Auction Tender Notice No.81943, dated 16.12.2024, vide Ref:ST:DPS:e-auction:07/2024-25, for sale of scrap material i.e., Scrap Wind Electric Generators (WEGs) at Ramagiri (12 Nos X 250 KW = 3 MW) and Scrap Wind Electric Generators (WEGs) at Kadavakallu (16 Nos X 250 KW = 4 MW). The auction was

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scheduled to be conducted on 23.12.2024. Petitioner participated in the E-Auction held on 23.12.2024 and submitted its bid after depositing an amount of Rs.12.00 lakhs for Ramagiri site and Rs.16.00 Lakhs for Kadavakallu site respectively, as per the terms and conditions of the E-Auction Notice. Petitioner became H1-Highest bidder on 24.12.2024 only for “Scrap Wind Electric Generators (WEGs) at Kadavakallu (16 Nos X 250 KW = 4 MW)” i.e. Lot 2, and the same was confirmed by 2^nd respondent on 25.12.2024 by accepting the bid amount of Rs.1,51,02,601/quoted by the petitioner firm. The petitioner’s bid for Lot 1 i.e. Scrap Wind Electric Generators (WEGs) at Ramagiri (12 Nos. X 250 KW = 3 MW), was not accepted.

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While so, the petitioner firm received an e-mail from the E- Auction Conductor/Admin of C1 India Private Limited i.e. 3^rd respondent herein, on behalf of 2^nd respondent through a mail ID:[email protected] on 27.12.2024 informing that 2^nd respondent rejected the bid of the petitioner for Lot 2 i.e. Scrap Wind Electric Generators (WEGs) at Kadavakallu (16 Nos X 250 KW = 4 MW). Immediately, the petitioner firm submitted a representation dated 27.12.2024 requesting 2^nd respondent to accept its bid informing that they are ready to comply with the terms and conditions of the e-auction notice. But, without considering the said representation and without assigning any reasons or affording an opportunity of hearing to the petitioner, 2^nd respondent rejected the bid of the petitioner and issued fresh Tender Notice, vide E-Auction Notice No.81944, dated 27.12.2024, for sale of Lot 2 i.e. Scrap Wind Electric Generators

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(WEGs) at Kadavakallu (16 Nos X 250 KW = 4 MW) and the said auction was scheduled to be conducted on 30.12.2024. Hence, the petitioner is constrained to file the present Writ Petition.

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This Court, on 31.12.2024, while ordering notice before admission in the Writ Petition, passed the following interim order in IA No.1 of 2024.

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“Heard the learned counsel for the petitioner and

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learned counsel for the respondents.

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For the reasons mentioned in the accompanying affidavit and considering the submissions made by both the learned counsel, there shall be an interim stay of E- Auction Sale of material i.e., Scrap Wind Electric Generators (WEGs) at Kadavakallu (16 Nos. x 250KW=4MW) i.e., Lot 2 issued by the 2^nd respondent vide Tender E-Auction No.81944, if not conducted on 30.12.2024.”

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Counter affidavit has been filed on behalf of 2^nd respondent – BHEL along with vacate stay petition in IA No.1 of 2025, inter alia , stating that on 31.12.2024 this Court passed stay order only if E-Auction No.81944 was not held on the previous day i.e., 30.12.2024. It is stated that the auction was, in fact, held on 30.12.2024 and the petitioner participated in the said auction held on 30.12.2024. However, by concealing the fact of participating in the auction held on 30.12.2024, petitioner obtained stay order on 31.12.2024 by misrepresentation and concealment of material facts. It is stated that in compliance of the stay order, 2^nd respondent exercised abundant caution and has not put the

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Scrap Wind Electric Generators (WEGs) at Kadavakallu (16 Nos. x 250KW=4MW) i.e. Lot 2, for auction. It is further stated that the scrap material of wind electric generators are erected in the open ground and subjected to speedy deterioration of its value due to wear and tear and there have been constant attempts for theft of the material and 2^nd respondent already lost material worth of Rs.20.00 lakhs due to theft of material from the site. 2^nd respondent is also incurring loss towards engagement of security personnel at site. Hence, he prays to vacate the order of stay granted by this Court.

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Petitioner filed reply affidavit denying the averments made in the counter and stating that subsequent to filing of Writ Petition, petitioner visited the site at Kadavakallu in October, 2025 to ascertain the existing condition of 16 Nos. Scrap Wind Electric Generators (WEGs). During inspection, petitioner noticed a substantial shortage of material when compared with the description contained in the tender schedule. Several components of WEGs were found missing, damaged, dismantled or otherwise untraceable. The site was found to be without any proper security arrangement, fencing or surveillance, leaving the material exposed to pilferage and deterioration and 2^nd respondent appears to have failed to take adequate steps to safeguard the material. The said circumstances cast serious doubt on the correctness of the quantity and condition of the materials presently available at site, thereby rendering any proposed re-auction prejudicial and contrary to public interest.

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7. Heard. Perused the material on record.

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A perusal of the material on record goes to show that, admittedly the petitioner participated in the E-Auction conducted on 23.12.2024 and deposited Earnest Money Deposit amounts of Rs.12,00,000/- for Ramagiri Site and Rs.16,00,000/- for Kadavakallu Site. The petitioner was declared as the highest bidder for Lot No.2 on 24.12.2024, and the same was confirmed by 2^nd respondent on 25.12.2024 by accepting the bid amount of Rs.1,51,02,601/-. However, subsequently, by an email dated 27.12.2024, the petitioner was informed that its bid for Lot No.2 was rejected.

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It is the case of the petitioner that such rejection was made without assigning any reasons and without affording an opportunity of hearing, despite submission of a representation on the same day expressing readiness to comply with all terms and conditions. Thereafter, 2^nd respondent issued a fresh E-Auction Notice dated 27.12.2024 scheduling a re-auction on 30.12.2024.

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A counter affidavit has been filed by 2^nd respondent contending that the petitioner participated in the subsequent auction held on 30.12.2024 and suppressed the said fact while obtaining an interim order from this Court on 31.12.2024. It is stated that the interim order was conditional and not applicable, as the auction had already been conducted.

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Having considered the submissions made on either side and upon perusal of the material on record, this Court is of the view that the dispute pertains to the fairness and transparency in the tender process. While the petitioner questions the rejection of its earlier successful bid, it is also an admitted position that subsequent events have taken place, including conduct of another auction.

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In the interest of justice, equity, and to ensure a fair and transparent process, this Court deems it appropriate not to adjudicate on the merits of the earlier rejection, but instead deems it fit to direct a fresh process so as to provide equal opportunity to all eligible participants, including the petitioner.

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Accordingly, the Writ Petition is disposed of, with a direction to the respondents to conduct fresh E-Auction for the sale of “Scrap Wind Electric Generators (WEGs) at Kadavakallu (16 Nos. x 250 KW = 4 MW)” strictly in accordance with law, ensuring transparency and fairness in the process, and by affording equal opportunity to all eligible bidders, including the petitioner. It is open for the petitioner to participate in the auction. There shall be no order as to costs.

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As a sequel thereto, the miscellaneous petitions, if any, pending in this Writ Petition shall stand closed.

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________________________ K. SREENIVASA REDDY, J.

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Date:09.02.2026 Nsr

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HON’BLE SRI JUSTICE K. SREENIVASA REDDY