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Patna High Court

Shiv Security Services (Registered)versusThe State of Bihar

Decided
Disposal
DISPOSED

Holding

The order cancelling the tender and work order is set aside as arbitrary and violative of natural justice.

Summary

Shiv Security Services was awarded a contract for supplying cook, water boy, sweeper and washer‑man services under NIT No.02/2025‑26 and began performance after a work order was issued. The contract was later cancelled by Memo No.3246 dated 13‑12‑2025 without any notice, specific reasons, or an opportunity to be heard, allegedly on the ground of unspecified irregularities in the tender process. The petitioner contended that the cancellation was arbitrary, violated natural justice and caused financial loss. The State argued that irregularities identified by the Directorate justified the cancellation. The Court held that the cancellation was arbitrary, lacked specific reasons, and breached the principles of natural justice, setting aside the impugned order and remitting the matter for fresh consideration with a hearing. The writ petition was consequently disposed of.

Issues considered

  • Whether the cancellation of the tender and work order without notice or hearing violates the principles of natural justice.
  • Whether a vague reference to ‘irregularities’ constitutes a sufficient ground for cancellation of an already‑executed contract.
  • Whether the administrative authority acted arbitrarily in contravention of Article 12 of the Constitution.
  • Whether the impugned order should be set aside and the matter remitted for fresh consideration.

Subjects

  • tender cancellation
  • natural justice
  • administrative law
  • writ jurisdiction
  • arbitrariness
  • procurement
  • contractual rights
  • Article 12

Judgment

                     IN THE HIGH COURT OF JUDICATURE AT PATNA
                                 Civil Writ Jurisdiction Case No.604 of 2026
                 ======================================================
                 Shiv Security Services (Registered) A partnership firm having its head office
                 at D-184, 1st Floor, West Patel Nagar, New Delhi- 110008, through its
                 authorized signatory Shivesh Kumar Singh, Gender- Male, Aged about- 48
                 Years, Son of Jitendra Narayan Singh, Resident of Ward No. 10, TFT Colony,
                 Valmiki Nagar, Post Office- Valmiki Nagar, Police Station- Valmiki Nagar,
                 District- West Champaran, (Bihar)- 845107.

                                                                              ... ... Petitioner/s
                                                 Versus
           1.    The State of Bihar through Assistant Inspector General of Police, Bihar
                 Special Armed Police Swabhiman Battalion Bihar Sardar Patel Bhawan
                 Nehru Marg, Patna.
           2.    The Directorate of Police, Bihar Special Armed Police, Swabhiman
                 Battalion, Sardar Patel Bhawan, Nehru Marg, Patna, Bihar.
           3.    The Assistant Inspector General of Police, Bihar Special Armed Police,
                 Swabhiman Battalion, Sardar Patel Bhawan, Nehru Marg, Patna, Bihar.
           4.    The Deputy Inspector General of Police, Bihar Special Armed Police,
                 Swabhiman Battalion, Collectariat Compound, Company Bagh,
                 Muzaffarpur, Bihar.
           5.    The Commandant, Bihar Special Armed Police Swabhiman Batallion,
                 Valmiki Nagar, West Champaran.

                                                           ... ... Respondent/s
                 ======================================================
                 Appearance :
                 For the Petitioner/s   :      Mr. Sanjeet Kumar, Advocate.
                 For the Respondent/s   :      Mr. Government Advocate (05)
                 ======================================================
                 CORAM: HONOURABLE MR. JUSTICE SUDHIR SINGH
                                           and
                         HONOURABLE MR. JUSTICE SUNIL DUTTA MISHRA
                                       ORAL ORDER

                    (Per: HONOURABLE MR. JUSTICE SUDHIR SINGH)

3   11-03-2026                 Heard learned counsel for the parties.

                               2. The present writ application has been filed for

                   quashing of the order contained in Memo No.3246 dated

                   13.12.2025, issued under the signature of the Commandant,

                   Bihar Special Armed Police Swabhiman Battalion, Valmiki
Patna High Court CWJC No.604 of 2026(3) dt.11-03-2026
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          Nagar, West Champaran, whereby the petitioner’s selection

          pursuant to NIT No.02/2025/26, for supply of Cook, Water Boy,

          Sweeper and Washer-man on an outsourcing basis has been

          cancelled without issuing any notice to the petitioner and

          without assigning any reason.

                      3. The case of the petitioner, in brief, is that pursuant

          to NIT No. 02/2025-26 dated 18.06.2025 issued by the

          Commandant,          Bihar     Special Armed   Police   Swabhiman

          Battalion, Valmiki Nagar for outsourcing services of Cook,

          Water Boy, Sweeper and Washerman for three years, the

          petitioner participated in the tender process and was declared

          successful after being found L-1 in the financial bid.

          Consequently, an agreement was executed on 26.07.2025 and

          work order was issued on 29.07.2025, pursuant to which the

          petitioner started supplying manpower and submitted bills duly

          certified by the office of the Commandant. Subsequently, on the

          basis of a complaint, an inquiry was conducted and thereafter

          the work order issued in favour of the petitioner was cancelled.

                      4. Learned counsel for the petitioner submits that

          pursuant to the work order issued in favour of the petitioner, he

          had already proceeded with the work. However, in the midst of

          execution of the work the same has been cancelled by the
Patna High Court CWJC No.604 of 2026(3) dt.11-03-2026
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          impugned order contained in Memo No.3246 dated 13.12.2025,

          without assigning any reason or giving any opportunity of

          hearing to the petitioners. Learned counsel further submits that

          the sudden cancellation of the work order has caused serious

          prejudice, financial loss, and irreparable injury to the petitioner.

                      5. Learned counsel for the state submits that certain

          irregularities were pointed out in the tender process, and

          therefore the present tender process was cancelled. In this

          regard, learned counsel for the state has referred to paragraph 18

          of the counter affidavit, which is reproduced as under:

                                     “18. That in reply to paragraph No. 16, it is

                        stated that the same relates to the decision of the Directorate

                        dated 09.12.2025 directing the DIG of the Batalion to cancel

                        the tender in question as there are discrepancies in the

                        selection of the agency. It is stated that the DIG of the

                        Battalion, North Division, Muzafarpur under his Memo No.

                        646 dated 18.10.2025 had pointed out irregularities in the

                        tender process carried out at the local level and had

                        suggested cancelling the tender. The same is self-

                        exhaustive.”

                      6. The relevant part of impugned order contained in

          Memo No.3246 dated 13.12.2025, issued under the signature of

          the Commandant, Bihar Special Armed Police Swabhiman

          Battalion, Valmiki Nagar, is reproduced as under:
Patna High Court CWJC No.604 of 2026(3) dt.11-03-2026
                                                4/6




                                       “izdkf”kr fufonk ds foRrh; izfdz;k esa vkosnd }kjk ifjokn

                        i= esa ntZ djk;h xbZ vkifRr ,oa dkxtks ds laca/k esa Hkonh; }kjk tkWap ds

                        dze esa mDr fofRr; izfdz;k esa ik;h xbZ dbZ =qfV;ksa ds laca/k esa fcgkj fo”ks’k

                        l”kL= iqfyl funs”kky;] iVuk ds izklafxd i= ds }kjk foLr`r

                        leh{kksijkUr izdkf”kr fufonk la0&02@2025&26 dks jí djus dk fu.kZ;

                        fy;k x;k gS rnuqlkj Hkonh; dk;kZy; ds mi;qZDr izklafxd i= ds }kjk

                        fufonk la0&02@2025&26 dks jí djus laca/kh dkjZokbZ djrs gq, d`r

                        dkjZokbZ ls lacaf/kr izfrosnu miyC/k djkus dk vkns”k izkIr gqvk gSA”



                      7. From the perusal of order dated 13.12.2025, it

          appears that tender was cancelled in midst of the execution of

          work without assigning any reason or without affording any

          opportunity of hearing to the petitioner. It is apparent that a

          vague statement regarding certain irregularities in the tender

          process was made the ground for cancellation of tender. A mere

          reference to “irregularity”, in the absence of any cogent or

          specific reason cannot be treated as a valid ground for

          cancelling the tender as well as already issued work order. Such

          action taken during the subsistence of the agreement and while

          the work was already under execution, is arbitrary and contrary

          to the principles of natural justice.

                      8. It is a settled position of law that any administrative

          decision affecting the rights of the parties/contractors must

          follow a fair procedure of law. In the present case, fair
Patna High Court CWJC No.604 of 2026(3) dt.11-03-2026
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          procedure has not been followed, neither any specific defects

          have been pointed out, nor any reason has been assigned for

          cancellation of tender, and the issued work order. At this

          juncture it is pertinent to take note of judgment rendered in

          Silppi Constructions Contractors v. Union of India, reported in

          (2020) 16 SCC 489, wherein the Supreme Court observed as

          under:

                                     “19. This Court being the guardian of

                        fundamental rights is duty-bound to interfere when there is

                        arbitrariness, irrationality, mala fides and bias.

                                     ....…

                                     No doubt, the bodies which are State within the

                        meaning of Article 12 of the Constitution are bound to act

                        fairly and are amenable to the writ jurisdiction of superior

                        courts but this discretionary power must be exercised with a

                        great deal of restraint and caution.”

                      9. Considering the aforesaid facts and circumstances,

          and the discussions made above the order under challenge

          contained in Memo No.3246 dated 13.12.2025 is set aside.

                      10. The matter is remitted back to the concerned

          authority to reconsider the issue and pass a fresh order in

          accordance with law, after affording due opportunity of hearing

          to all the stakeholders, including personal hearings, if required,

          within a period of two weeks from the date of filing of any
          Patna High Court CWJC No.604 of 2026(3) dt.11-03-2026
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                    application for reconsideration by the petitioner.

                                11. With the aforesaid observation and direction, the

                    present writ application stands disposed of.

                                12. Pending application(s), if any, shall also stand

                    disposed of.



                                                (Sudhir Singh, J)


                                            (Sunil Dutta Mishra, J)
Ritik/-

U


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