LEVEL 9 BIZ PVT. LTD. versus HIMACHAL PRADESH HOUSING AND URBAN DEVELOPMENT AUTHORITY & ANOTHER

Citation: [2024] 4 S.C.R. 1 · Decided: 02-04-2024 · Supreme Court of India · Bench: BELA M. TRIVEDI · Disposal: Appeal(s) allowed

Judgment (excerpt)

* Author
[2024] 4 S.C.R. 1 : 2024 INSC 257
Level 9 Biz Pvt. Ltd. 
v. 
Himachal Pradesh Housing and Urban  
Development Authority & Another
(Civil Appeal No. 4626 of 2024)
02 April 2024
[Bela M. Trivedi* and Pankaj Mithal, JJ.]
Issue for Consideration
Matter pertains to the correctness of the order passed by 
the High Court disposing the writ petition by accepting the 
statements of the respondent no. 1-tenderee and respondent 
no. 2-successful bidder, permitting the respondent no.1 to 
withdraw the cancellation of initial tendering process order and 
permitting the respondent no. 2 to execute the project on the 
same terms and conditions as in the initial tender, though the 
said tender was already withdrawn by the respondent no.1 in 
view of the report of the independent Committee confirming 
gross irregularities and illegalities committed by the officers of 
the respondent no.1.
Headnotes
Tender – Notice inviting tender – Issuance of letter of intent in 
favour of the successful bidder by the tenderee – Challenge 
to, by the unsuccessful bidder – Cancellation of initial tender 
process by the tenderee and withdrawal of the letter of intent 
issued in favour of the successful bidder on account of 
pending litigations in the High Court – Thereafter, issuance of 
fresh NIT by tenderee – Challenge to – High Court disposed 
of the writ petition by merely accepting the statement of the 
tenderee that it had no objection to go ahead with the initial 
tendering process and the statement of the initial successful 
bidder that it was ready to execute the project on the same 
terms and conditions as initially agreed, though the said 
tender was already withdrawn by the tenderee in view of the 
irregularities and illegalities committed by it, as recorded by 
an independent committee appointed by the High Court in 
earlier writ petitions – Correctness:
2
[2024] 4 S.C.R.
Digital Supreme Court Reports
Held: No right whatsoever created in favour of the respondent no. 
2-successful bidder, and the respondent no. 1 HIMUDA-tenderee 
cancelled the tender and issued fresh NIT, as such the respondent 
no. 1 could not have agreed to allow the respondent no. 2, who 
was found to be not technically qualified, to go ahead with the 
execution of the project in question and that too without giving 
the other two parties any opportunity to negotiate – Respondent 
no. 1 in collusion with the respondent no. 2, took the High Court 
for a ride and misused the process of law for covering up the 
irregularities and illegalities committed in the tender process by the 
officers of the respondent no. 1 – High Court also could not notice 
the ill-intention of the respondent nos. 1 and 2 and disposed of 
the petition, permitting them to go ahead with the original tender 
– Thus, the impugned order having been passed without proper 
application of mind and without assigning any cogent reason for 
brushing aside the findings recorded by the Independent Committee 
and the observations made by the Single Bench, is quashed 
and set aside – Also, the respondent no.1, though ‘State’ within 
the meaning of Art. 12, acted malafide and in collusion with the 
respondent no.2, and took the High Court for a ride, heavy  cost 
of Rs. 5,00,000/- imposed on the respondent no. 1 – Constitution 
of India – Art. 12. [Paras 11-14]
Tender – Notice inviting tender – Letter of Intent – Nature of:
Held: Letter of Intent is merely an expression of intention to enter 
into a contract – It does not create any right in favour of the 
party to whom it is issued – There is no binding legal relationship 
between the party issuing the LOI and the party to whom such 
LOI is issued – Detailed agreement/contract is required to be 
drawn up between the parties after the LOI is received by the 
other party. [Para10]
List of Acts
Constitution of India.
List of Keywords
Cancellation of initial tendering process; Tender; Irregularities 
and illegalities; Notice inviting tender; Letter of intent; Burden on 
the public exchequer; Misuse process of law; Cost; Fresh tender 
process; Agreement/contract.
[2024] 4 S.C.R. 
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Level 9 Biz Pvt. Ltd. v. Himachal Pradesh Housing and Urban 
Development Authority & Another
Case Arising From
CIVIL APPELLATE JURISDICTION : Civil Appeal No. 4626 of 2024
From the Judgment and Order dated 18.10.2022 of the High Court of 
Himachal Pradesh at Shimla in CWP No. 1481 of 2021
Appearances for Parties
P.S. Patwalia, Sr. Adv., Ritesh Khatri, Ms. Deveshi Chand, Advs. fo

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