Facts
The Petitioner challenged the e-auction settlement of two sand ghats (Group No. 4) in Muzaffarpur.
Source reference: para. 8, 10The auction, originally scheduled for 26.12.2022 from 11:00 A.M. to 01:00 P.M., commenced at 11:05 A.M. due to technical issues.
Source reference: para. 8, 10Under Clause 12 of the tender, a bid within the final five minutes triggers a one-hour extension.
Source reference: para. 11Respondent No. 7 placed a bid at 01:00:30 P.M. (within the final five minutes of the revised 01:05 P.M. deadline), causing the system to automatically extend the window to 02:05 P.M.
Source reference: para. 11, 13Respondent No. 7 then placed the highest bid of Rs. 1,56,27,150/- at 02:00:30 P.M.
Source reference: para. 4The Petitioner, whose final bid was at 01:47:56 P.M., alleged the auction closed at 02:00 P.M. and the Respondent’s bid was invalidly accepted after expiry.
Source reference: para. 3-4Issues
1. Whether the bid submitted by Respondent No. 7 at 02:00:30 P.M. was within the permissible time-frame according to Clause 12 of the e-auction notice and the actual commencement time of the auction.
Source reference: para. 92. Whether the actions of the respondent authorities in declaring Respondent No. 7 as the successful bidder were arbitrary, biased, or violative of the principles of natural justice.
Source reference: para. 6, 9Law Applied
Principles of fairness, transparency, and non-arbitrariness in government contracts as established in Monarch Infrastructure (P) Ltd. v. Ulhasnagar Municipal Corporation, emphasizing that all participants must be treated alike.
Source reference: para. 15Restrictive judicial review in contractual/technical matters unless there is manifest arbitrariness or mala fides as per Silppi Constructions Contractors v. Union of India.
Source reference: para. 17Doctrine from University of Mysore v. C.D. Govinda Rao, holding that courts should be slow to interfere with the findings of expert/technical committees in the absence of mala fides.
Source reference: para. 19Reasoning
The Court examined the Scrutiny Committee report and the "Auction Synopsis Report," which confirmed that the auction's start time was shifted to 11:05 A.M. due to technical reasons.
Source reference: para. 10-12Because the closing window shifted to 01:05 P.M., the bid at 01:00:30 P.M. was validly within the "last five minutes" specified in Clause 12.
Source reference: para. 11The resulting one-hour extension to 02:05 P.M. was system-generated and automatic, precluding any manual intervention or favoritism.
Source reference: para. 12, 18The Court reasoned that since the extension applied uniformly to all qualified bidders, there was no discrimination.
Source reference: para. 16, 20The Petitioner failed to refute the authenticity of the system logs or prove any breach of the tender conditions.
Source reference: para. 12, 21Holding
The Court answered the issues in the negative, holding that the bid by Respondent No. 7 was legally valid as it was submitted within the automatically extended period.
The writ petition was dismissed, and the settlement in favor of Respondent No. 7 was upheld.
Source reference: para. 22Original Court PDF
PLAS RADHA INT UDYOG,vsThe State of Bihar
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