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J&K High Court Upholds Tender Cancellation: No Binding Contract Established Before Acceptance Letter

JAMMU AND KASHMIR HIGH COURT HC LAW INSIDER IN

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Published on: December 31, 2023 at 13:00 IST

The Jammu and Kashmir and Ladakh High Court have upheld the cancellation of a contentious sheep/goat procurement tender by the Sheep Husbandry Department. They clarified that merely participating in the tender does not establish rights for the bidder, allowing the tenderer to cancel the process before issuing an acceptance letter. 

In a case involving Ghulam Qadir Bhat and another petitioner contesting the cancellation of electronic-Notice Inviting Tenders (e-NITs) for livestock supply, the court highlighted that despite being identified as the lowest bidders (L-1), the petitioners lacked a binding contract with the department.

The Court stressed that the tendering process is an invitation to offer, granting no obligation to the issuing authority to accept any offer until a contract is established.

The Court recognized the department’s valid concerns about preserving the genetic integrity of local sheep in Jammu and Kashmir.

This concern was supported by evidence from departmental meetings, indicating worries about jeopardizing local breeds with potentially inferior animals from neighboring states. This consideration, prioritizing public interest over individual gain, justified the cancellation.

Emphasizing the limited role of judicial intervention in contractual matters, the court highlighted that unless there are malicious intentions or procedural irregularities, the department retains the right to cancel the tender before its finalization.

Consequently, the Court dismissed the plea brought by Ghulam Qadir Bhat and another against the decision of the department.

Case Title: Ghulam Qadir Bhat and another V/s U.T of J&K and others