VAIBHAVI ENTERPRISE versus NOBEL CERA COAT & ORS.

VAIBHAVI ENTERPRISE versus NOBEL CERA COAT & ORS.

The High Court's order was quashed because it permitted the original writ applicant to modify its bid during Article 226 proceedings and directed ONGC to finalize the contract without giving other shortlisted applicants and the Union of India proper opportunity to be heard and without reasons on merits; the matter is remitted to the High Court to restore and decide the writ petition after impleading and hearing all parties.

Parties
Appellant (civil Appeal No. 6289 of 2021): Vaibhavi Enterprise; Original Writ Applicant / Respondent No.1: Nobel Cera Coat; Appellant (civil Appeal No. 6290 of 2021): Tanish Cerachem Private Limited; Respondent No.2: Oil and Natural Gas Corporation (ONGC); Respondent No.3: Union of India
Jurisdiction
India
Judgment Date
21 October 2021
Procedural Posture
Civil Appeal / Appeal From High Court Judgment Disposing Writ Petition Under Article 226
Outcome
Appeals allowed. Impugned High Court order quashed and set aside. Matter remitted to High Court for fresh decision after impleading and hearing all parties.
Legal Topics
Article 226, Writ of Mandamus, Impleading Parties, Bid Modification, Natural Gas Allocation
Constitutional Law Administrative Law Tenders and Procurement Contract Law Article 226 Writ of Mandamus Impleading Parties Bid Modification +1 more

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Parties

Vaibhavi Enterprise

Appellant (civil Appeal No. 6289 of 2021)

Nobel Cera Coat

Original Writ Applicant / Respondent No.1

Tanish Cerachem Private Limited

Appellant (civil Appeal No. 6290 of 2021)

Oil and Natural Gas Corporation (ONGC)

Respondent No.2

Union of India

Respondent No.3

Procedural Posture

Civil Appeal / Appeal From High Court Judgment Disposing Writ Petition Under Article 226

Legal Issues

  1. 1 Whether the High Court could permit a bidder to modify its offer during writ proceedings under Article 226 without giving other affected bidders an opportunity to be heard
  2. 2 Whether the High Court's disposal of the writ petition without impleading or hearing other applicants was sustainable
  3. 3 Whether the High Court could issue mandamus directing ONGC to finalize contract on the modified offer without adjudication on merits

Ratio Decidendi

The High Court's order was quashed because it permitted the original writ applicant to modify its bid during Article 226 proceedings and directed ONGC to finalize the contract without giving other shortlisted applicants and the Union of India proper opportunity to be heard and without reasons on merits; the matter is remitted to the High Court to restore and decide the writ petition after impleading and hearing all parties.

Court Disposition

Appeals allowed. Impugned High Court order quashed and set aside. Matter remitted to High Court for fresh decision after impleading and hearing all parties.

Orders

  • Impugned High Court order dated 20.09.2021 in SCA No.5815 of 2021 quashed and set aside
  • Special Civil Application No.5815 of 2021 restored to the file of the High Court