HYDERABAD: Dealing with a writ appeal filed by one of the bidders, chief justice Madan B Lokur of the High Court on Monday stayed a contract awarded by the Amalapuram municipality to engage 31 helpers and one jeep driver for a water purification plant.
Contracts cannot be awarded through lottery system, the chief justice noted.
A division bench comprising the chief justice and justice PV Sanjay Kumar pointed out that there was no provision in law to award contract by way of a lottery system and the action of the Amalapuram municipality was arbitrary.
The appellant, S Veera Venkat Rao and two others had submitted tenders by quoting the same estimated price of Rs 30,69,653. As there was a tie among the three bidders, the commissioner had drawn lots and placed before the municipal council for a decision. The council then passed a resolution by awarding contract to one of the bidders.