Outstanding departmental dues can justify rejection of a tender bid, and concealment may bar discretionary writ relief.

Tender conditions barring acceptance of bids where departmental dues remain outstanding justified rejection of the petitioner's bid because the dues existed on the relevant date, and pending rectification proceedings did not extinguish that liability. The Rajasthan HC also noted that the petitioner's denial of dues, incomplete disclosure of tender conditions, and delayed approach after opening of fresh tenders disentitled it to discretionary writ relief. On that basis, the cancellation of the tender and issuance of a fresh tender notice were treated as lawful, and extraordinary jurisdiction was not exercised in the petitioner's favour.

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Issues: Whether the cancellation of the petitioner's tender and issuance of a fresh tender notice were valid where departmental dues existed against the petitioner and whether discretionary writ relief could be granted in the petitioner's favour.

Analysis: The tender conditions prohibited acceptance of a tender where departmental dues were outstanding. A demand had been raised against the petitioner, and the pendency of rectification proceedings did not extinguish the liability. On the relevant date, the dues still existed, so the authorities were justified in rejecting the tender under the tender conditions. The petitioner's conduct was also material: it had denied the existence of dues while applying, failed to disclose the tender conditions fully, and approached the court only after the fresh tenders were opened. Such conduct disentitled it to discretionary relief under writ jurisdiction.

Conclusion: The cancellation of the petitioner's tender was lawful, and no writ relief was warranted in the petitioner's favour.

Final Conclusion: The petitions failed on both merits and equity, and the court declined to exercise its extraordinary jurisdiction.

Ratio Decidendi: Where tender conditions bar acceptance of a bid in the presence of outstanding departmental dues, the existence of such dues justifies rejection of the bid notwithstanding pending rectification or dispute, and concealment of material facts may deny discretionary writ relief.

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