#tender cancellation

The Gauhati High Court nullified a tender cancellation because the authority failed to give reasons as mandated by Section 26(3) of the Assam Procurement Act, 2017, and ordered the contract awarded to the petitioner, the lowest evaluated bidder. The ruling underscores the duty to communicate cancellation reasons, protecting bidders in future procurements.

Madhya Pradesh High Court rules that authorities retain discretion to cancel tenders even if a single bid exceeds the reserve price, prioritizing competition and public interest over automatic allotment. The decision reinforces administrative flexibility in public procurement, preventing arbitrary claims by bidders.

Chhattisgarh High Court upholds tender cancellation after L-1 bidder declaration, ruling that bona fide policy shifts toward Government e-Marketplace (GeM) procurement override bidder expectations. The decision clarifies that public authorities may lawfully cancel tenders without prior notice if changes serve public interest and align with statutory procurement reforms.

MP High Court sets aside tender cancellation and Rs.10 lakh bid security forfeiture, ruling that delays caused by ambiguous LOA terms cannot penalize the bidder. The judgment reinforces that public authorities must clarify tender conditions upfront to avoid arbitrary actions under Article 14.