Tender policy revision and bid cancellation upheld where the authority acted within statutory powers and without arbitrariness.

A statutory authority with broader control over its property may cancel earlier bids and revise the tender policy for a project if the change is a bona fide policy decision. Judicial review remains limited unless the action is shown to be arbitrary, mala fide, contrary to statute, or against public policy. The fact that a bidder had earlier emerged as the highest bidder did not require acceptance of that bid where the tender conditions and project structure were later revised and the bidder did not participate in the fresh tender. On that basis, interference with the revised tender decision was not warranted.

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Issues: Whether the Authority had jurisdiction to cancel the bid and alter the tender policy, and whether such action was liable to be interfered with in judicial review.

Analysis: The Authority was a statutory body with larger powers under the governing Act, while the Executive Committee had a confined role in approval or rejection of tenders. The cancellation of the earlier bids was treated as an exercise by the Authority to re-examine the project and adopt a fresh policy for disposal of its property. The Court held that a change in policy in relation to a mega project, by itself, did not render the decision illegal, and that in the absence of arbitrariness, mala fides, or violation of statute or public policy, judicial review should remain restrained. The fact that the appellant had been the highest bidder earlier did not compel acceptance of that bid, especially when the tender conditions and project structure were later revised and the appellant did not participate in the fresh tender.

Conclusion: The Authority was competent to cancel the earlier tender and adopt a revised policy, and no ground for interference under judicial review was made out.

Ratio Decidendi: A statutory authority having broader powers over its property may revise its tender policy and cancel bids if the decision is a bona fide policy change and is not shown to be arbitrary, mala fide, or contrary to statute.

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