[2013] KEHC 5520 (KLR)

[2013] KEHC 5520 (KLR)

The court held that the applicant's claim was not based on the process followed in the award of the tender but on the failure of the 1st respondent to enter into a written contract. Under section 36(1) of the Public Procurement and Disposal Act, the procuring entity has discretion to terminate a tender at any time...

Source-derived case information.

Citation
[2013] KEHC 5520 (KLR)
Parties
Applicant: Benken Hygiene Services Limited; Respondent: The Permanent Secretary, Ministry of State for Defence; Respondent: The Attorney General; Interested Party: Pestlab Cleaning Services
Court
High Court
Court Station
High Court at Nairobi (Milimani Commercial Courts)
Jurisdiction
Kenya
Case Number
Miscellaneous Application 705 of 2012
Procedural Posture
Miscellaneous Application / Judgment
Outcome
application dismissed
Judges
GV Odunga
Legal Topics
Public Procurement, Judicial Review, Tender Termination, Mandamus, Certiorari, Natural Justice
Source Language
en
Administrative Law Commercial and Corporate Public Procurement Judicial Review Tender Termination Mandamus Certiorari Natural Justice

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Parties

Benken Hygiene Services Limited

Applicant

The Permanent Secretary, Ministry of State for Defence

Respondent

The Attorney General

Respondent

Pestlab Cleaning Services

Interested Party

Procedural Posture

Miscellaneous Application / Judgment

  1. 1 Whether the 1st respondent was under a statutory duty to enter into a written contract with the applicant after awarding the tender.
  2. 2 Whether the termination of the applicant's tender and extension of the interested party's contract was lawful under the Public Procurement and Disposal Act.
  3. 3 Whether the applicant was entitled to judicial review remedies of mandamus and certiorari in the circumstances.

Ratio Decidendi

The court held that the applicant's claim was not based on the process followed in the award of the tender but on the failure of the 1st respondent to enter into a written contract. Under section 36(1) of the Public Procurement and Disposal Act, the procuring entity has discretion to terminate a tender at any time before a contract is executed, and section 68(3) makes clear that no contract exists until reduced to writing. The law does not impose a duty on the procuring entity to enter into a contract, and mandamus cannot be used to compel the exercise of discretion in a particular way. The applicant's remedy, if any, lies in private law for breach of contract or unjust enrichment, not in...

Court Disposition

application dismissed

Orders

  • The Notice of Motion dated 20th December 2012 is dismissed.
  • There will be no order as to costs.