Md Shafique Alam v. The State of Bihar
Tender – cancellation of concluded tender and executed agreement
Case brief
What is this about?
Cancellation of awarded tender and executed agreement (Agreement dt.08.09.2025; LOA Letter No.751 dt.23.08.2025) by Executive Engineer, PHED Kishanganj, solely on complaint of unsuccessful bidder Aman Anand, without show-cause notice – held arbitrary, violative of natural justice; requirement of reasoned decisions per Kranti Associates v. Masood Ahmed Khan (2010) 9 SCC 496; parity with Avian Infrastructure and Energy Pvt Ltd. v. State of Bihar, Patna HC DB, CWJC No.15495 of 2025 dt.19.03.2026; re-tender NIT No.08/(Retender-2) 2024-25 (SBFe) dt.15.09.2025 quashed; certiorari; writ petition allowed; Public Health Engineering Department, Bihar; third-party complaint cannot be sole basis for cancelling concluded tender.
What did the court decide?
Writ petition allowed: office order dated 13.09.2025 (Annexure-P/5), Notice/letter dated 12.09.2025 (Annexure-P/6 series) and fresh NIT bearing No. 08/ (Retender-2) 2024-25 (SBFe) dated 15.09.2025 (Annexure-P/7) with all consequential communications/notifications set aside; Petitioner permitted to execute the work in terms of LOA Letter No. 751 dated 23.08.2025.