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Issues involved:
The issues involved in this case are the cancellation of a tender process initiated by a Railway authority and the subsequent judicial review of the decision. Cancellation of Tender Process: The Divisional Commercial Manager of N.F. Railways floated a tender for leasing space in a Parcel Van on a round trip basis. The tender was opened, and the writ petitioner emerged as the highest bidder. However, the tender process was canceled due to the absence of necessary clauses in the tender notice. Judicial Review: The respondent-writ petitioner challenged the cancellation, arguing that it was arbitrary and lacked valid reasons for rejecting the highest bid. The Single Judge ruled in favor of the writ petitioner, emphasizing the need for fairness in awarding contracts by public authorities. The appellant contended that the cancellation was justified as the tender conditions were not specified in the notice. Legal Principles: The Court highlighted that judicial review in tender matters is permissible based on illegality, irrationality, and procedural infirmity. It was noted that the mere exposure of rates by a bidder does not automatically invalidate the cancellation of a tender process if done in good faith and legally. The Court cited precedents emphasizing the importance of public interest and the need for judicial restraint in administrative actions. Decision: After considering the arguments and legal principles, the Court concluded that the order of the Single Judge could not be sustained. The appeal was allowed, the Single Judge's order was set aside, and the writ petition was dismissed. The appellant was granted liberty to proceed with the matter in accordance with the law.
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