LEVEL 9 BIZ PVT. LTD. versus HIMACHAL PRADESH HOUSING AND URBAN DEVELOPMENT AUTHORITY & ANOTHER

LEVEL 9 BIZ PVT. LTD. versus HIMACHAL PRADESH HOUSING AND URBAN DEVELOPMENT AUTHORITY & ANOTHER

The Division Bench's order dated 18.10.2022 was quashed because it was passed without proper application of mind and without assigning cogent reasons for disregarding the independent committee's findings and the Single Bench's observations; an LOI did not confer a legal right on respondent no.2 after the tender was cancelled; respondent no.1 acted mala fide and in collusion with respondent no.2; accordingly the appeal is allowed, the impugned High Court order is set aside, and respondent no.1 is directed to pay costs and may initiate a fresh tender in accordance with law.

Parties
Appellant: Level 9 Biz Pvt. Ltd.; Respondent No.1: Himachal Pradesh Housing and Urban Development Authority; Respondent No.2: M/s. Vasu Constructions
Jurisdiction
India
Judgment Date
02 April 2024
Procedural Posture
Civil Appeal / Final Judgment on Appeal From High Court Order Dated 18.10.2022
Outcome
Appeal allowed; impugned order of the High Court dated 18.10.2022 set aside
Legal Topics
Cancellation of Tender, Letter of Intent, Procedural Impropriety, Collusion and Mala Fide Conduct, Costs
Administrative Law Contract/tender Law Constitutional Law Cancellation of Tender Letter of Intent Procedural Impropriety Collusion and Mala Fide Conduct Costs

Case Brief

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Parties

Level 9 Biz Pvt. Ltd.

Appellant

Himachal Pradesh Housing and Urban Development Authority

Respondent No.1

M/s. Vasu Constructions

Respondent No.2

Procedural Posture

Civil Appeal / Final Judgment on Appeal From High Court Order Dated 18.10.2022

Legal Issues

  1. 1 Whether the High Court could dispose of CWP No.1481/2021 by recording/accepting statements permitting revival of a cancelled tender despite findings of irregularities by an independent committee and order dated 08.01.2021
  2. 2 Whether a Letter of Intent (LOI) creates any enforceable right in favour of the party to whom it is issued
  3. 3 Whether respondent no.1 acted mala fide and in collusion with respondent no.2 and misused process of law

Ratio Decidendi

The Division Bench's order dated 18.10.2022 was quashed because it was passed without proper application of mind and without assigning cogent reasons for disregarding the independent committee's findings and the Single Bench's observations; an LOI did not confer a legal right on respondent no.2 after the tender was cancelled; respondent no.1 acted mala fide and in collusion with respondent no.2; accordingly the appeal is allowed, the impugned High Court order is set aside, and respondent no.1 is directed to pay costs and may initiate a fresh tender in accordance with law.

Court Disposition

Appeal allowed; impugned order of the High Court dated 18.10.2022 set aside

Orders

  • Impugned order dated 18.10.2022 passed by the High Court is quashed and set aside
  • Respondent No.1 (HIMUDA) to deposit costs of Rs.500000 with the Supreme Court Advocates-on-Record Association within two weeks