Gross Irregularities and Illegalities in Tender Process Cannot be Overlooked: Supreme Court Quashes High Court’s Order in HIMUDA Tender Saga
In a significant ruling, the Supreme Court has annulled the Himachal Pradesh High Court’s decision pertaining to the HIMUDA tender process. The judgment underscores the imperative of judicial diligence and transparency in public procurement processes, particularly when allegations of irregularities and illegalities are substantiated.
Facts and Issues:
The core issue revolved around the tender floated by HIMUDA for a commercial complex in Shimla. Initially, the tender was canceled due to procedural lapses and irregularities, a decision supported by an independent committee’s findings. However, in a subsequent turn of events, the High Court permitted HIMUDA to reinstate the original tender. This decision, primarily based on the unverified statements of the respondents’ counsel, was challenged in the Supreme Court.
Detailed Court Assessment:
Tender Irregularities: The Supreme Court, taking a firm stance, denounced the irregularities in the tender process, highlighting the necessity for adherence to procedural and legal norms in public contracts.
Judicial Oversight by High Court: The Apex Court criticized the High Court for its inadequate scrutiny of the independent committee’s report and for relying excessively on the respondent counsels’ statements, thereby failing to uphold the tenets of judicial diligence and transparency.
Conduct of Respondents: The judgment pointed out potential collusion between HIMUDA and the contractor (Respondent 2), which amounted to a serious misuse of the legal process and an affront to public interest.
Decision: The Supreme Court reversed the High Court’s decision and instructed HIMUDA to deposit Rs. 5,00,000 as costs for the misuse of judicial process. The Court mandated a fresh, lawful, and transparent tender process, emphasizing strict compliance with due process in future tenders.
Date of Decision: April 2nd, 2024.
“Level 9 BIZ Pvt. Ltd. Vs. Himachal Pradesh Housing and Urban Development Authority & Another,”
