Tender rejection of the lowest bid was upheld where past performance and statutory dues concerns matched the tender conditions.

A tendering authority may reject even the lowest financial bid where the tender conditions reserve that power and permit rejection for past unsatisfactory performance. Judicial review in contractual tender matters is limited to the decision-making process and will not extend to substituting the court's view unless the process is arbitrary, unreasonable, mala fide, discriminatory, or contrary to the tender terms. On adverse reports regarding past performance and non-compliance with statutory dues, the authority's refusal to accept the bid was treated as consistent with the RFP, and no interference was warranted.

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Issues: Whether the tendering authority was justified in rejecting the petitioner's financial bid, though it was the lowest bid, on the ground of past unsatisfactory performance and alleged non-deposit of statutory dues.

Analysis: The tender document reserved to the authority the power to reject any or all bids and specifically permitted rejection on the basis of past unsatisfactory performance. Judicial review in contractual matters is confined to the decision-making process and interference is warranted only where the process is arbitrary, unreasonable, mala fide, discriminatory, or contrary to the tender conditions. The petitioner's bid was rejected on the basis of adverse reports from RTO offices and on the basis of communication from the provident fund authorities indicating non-compliance with statutory obligations. In such a situation, the authority's decision not to accept the lowest bid was within the terms of the RFP and could not be characterised as arbitrary.

Conclusion: The rejection of the petitioner's bid was upheld and no interference was warranted.

Final Conclusion: The writ petition failed, as the tendering authority's decision was found to be consistent with the RFP and within the permissible limits of judicial review.

Ratio Decidendi: In tender matters, the authority may reject even the lowest bid on the basis of past unsatisfactory performance where the tender conditions so permit, and such a decision will not be interfered with unless the decision-making process is arbitrary, mala fide, or contrary to the tender terms.

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