Page No.# 1/9 GAHC040018302024 2025:GAU-AP:1101 THE GAUHATI HIGH COURT (HIGH COURT OF ASSAM, NAGALAND, MIZORAM AND ARUNACHAL PRADESH) Case No. : WP(C)/611/2024 M/s B M Store represented by Shri Kholie Hania, attorney holder of M/s B M Store, Son of Shri Kholie Tayo, a permanent resident of Upper Jumi, PO Kimin, PS Kimin, Papum Pare District, Arunachal Pradesh VERSUS The State of Arunachal Pradesh represented through the Secretary, rural Development, Govt of Arunachal Pradesh, Itanagar. 2:The Director Rural Development Papum Pare District Yupia Govt of Arunachal Pradesh. 3:The Project Director Rural Development Papum Pare District Yupia Govt of Arunachal Pradesh. 4:The Deputy Commissioner Papum Pare District Yupia Govt of Arunachal Pradesh Advocate for the Petitioner : Puto Bui, Talu Kamsar,M Bui Advocate for the Respondent : GA (AP), SC (RD),Binter Picha Page No.# 2/9 :::BEFORE::: HON’BLE MR. JUSTICE KARDAK ETE JUDGMENT & ORDER (Oral) Dated: 22.09.2025 Heard Mr. P. Bui, learned counsel for the petitioner. Also heard Mr. R. H. Nabam, learned Additional Advocate General for the State respondents. 2. By filing this writ petition, the petitioner has put to challenge the order dated 12.12.2024, issued by the Deputy Commissioner, Papum Pare District, Yupia, whereby the NIT dated 23.10.2024 for selection of an outsourced agency for engagement of contractual staff for the Film and Television Institute, Arunachal Pradesh (herein after referred to as FTI, A.P in short), has been cancelled. 3. The case, in brief, is that the Project Director, Rural Development, Papum Pare District, Yupia, issued Notice Inviting Tender (NIT) vide dated 23.10.2024 for selection of an outsourced manpower agency for engagement of contractual Staff for the FTI, A.P. The petitioner, being eligible along with 2 (two) other firms, participated in the tender process. On having been found most suitable, a Letter of Intent (LOI in short) dated 06.11.2024, was issued in favour of the petitioner firm by the Deputy Commissioner, Papum Pare District, Yupia, with a direction to submit an acceptance letter within 3 (three) days subject to certain terms and conditions. The petitioner accordingly submitted his acceptance letter on 08.11.2024 and deposited a sum of Rs.19,72,800/- as Performance Bank guarantee/security deposit from the Bank of Maharashtra in favour of the Project Director, Rural Development, Papum Pare District, Yupia. Page No.# 3/9 4. It is the contention of the petitioner that after completion of all the necessary formalities, and while the petitioner was anticipating execution of the contract agreement in terms of the LOI, the Deputy Commissioner, Papum Pare District, vide impugned order dated 12.12.2024, has cancelled the tender process for selection of an outsourced agency for engagement of staff for FTI, A.P based on the complaint lodged by one Shri Taba Kunia, GPC and Shri Nabam Radhe, land donor and along with others, opposing the recruitment of staff through a private outsourced agency. Consequently, the agreement between the petitioner and the respondents could not be executed. 5. Mr. P. Bui, learned counsel for the petitioner submits that the Deputy Commissioner cancelled the tender process arbitrarily and without providing an opportunity to the petitioner, inasmuch as the cancellation was purely based on certain complaints and on the direction of the Hon’ble MLA, 14th Doimukh (ST) Assembly Constituency. It is contended that the cancellation was purely based on political interference. The complaints purported to have been made by the persons, who were not bidders, they appears to have simply claimed that they are the land donors, whereas there was no complaint or objection from any corners when the tender was widely published in the local newspaper. 6. Mr. Bui, learned counsel while referring to the minutes of the meeting dated 12.12.2024, headed by the local MLA, 14th Doimukh (ST) Assembly Constituency, submits that the said minutes clearly show that the local MLA had directed the authorities to initiate the recruitment process directly, thereby ignoring the fair tender process which has already been undertaken by the respondent authorities which smacks of mala fide intention. He submits that the cancellation of the tender process was clearly at the behest of the local MLA, Page No.# 4/9 who had nothing to do with the tender process. Therefore, the impugned order of cancellation of the tender may be set aside and quashed and direction may be issued to allow the respondents to execute the contract agreement and allow the petitioner to carry out the job as per the LOI. 7. In support of his submissions, Mr. Bui, learned counsel has relied on the following decisions of the Hon’ble Supreme Court: (i) Subodh Kumar Singh Rathour Vs. Chief Executive Officer & Ors., reported in 2024 SCC Online SC 1682; and (ii) Principal Chief Conservator of Forest & Ors. Vs. Suresh Mathew & Ors., reported in 2025 SCC Online SC 933. 8. On the other hand, Mr. R. H. Nabam, learned Additional Advocate General, submits that after issuance of the LOI in favour of the petitioner, certain land donors raised objection regarding the recruitment process through an outsourced manpower agency. Consequently, a meeting was held on 22.12.2024, during which the Hon’ble MLA, 14th Doimukh (ST) Assembly Constituency verbally directed the respondent No. 3 to initiate the recruitment process directly. Following the said directive, the order dated 12.12.2024, was issued cancelling the tender for selection of an outsourced agency for engagement of staff for FTI. AP. Thereafter, an advertisement for walk-in- interview for various posts in FTI, Arunachal Pradesh, was published on 22.12.2024, and all the posts have been filled up and the persons appointed are serving in the institute. He submits that the complainants, Shri Taba Kunia, GPC and Shri Nabam Radhe, being the land donors, had raised objection and there was a risk of law-and-order situation if the NIT was not cancelled, as they were claiming appointment through due process of law instead of outsourcing the Page No.# 5/9 engagement of manpower by an agency for Group B and Group C post, non- academic positions at the institute. Therefore, in the interest of public, the NIT was cancelled and the recruitment has been made preceded by an advertisement and interview. 9. Due consideration has been extended to the submissions of the learned counsel for the parties and also perused the materials available on record. 10. Pursuant to the NIT dated 23.10.2024 for selection of an outsourced manpower agency for engagement of contractual staff for FTI, Arunachal Pradesh, the Letter of Intent dated 06.11.2024, was issued by the Deputy Commissioner, Papum Pare District, Yupia, to the petitioner. Accordingly, as per the terms of the LOI, the petitioner submitted a letter of acceptance on 08.11.2024 and deposited a performance bank guarantee/security deposit of Rs.19,72,800/- being 5% of the total staff salary for 2 (two) years, in the name of Project Director, Rural Development, Papum Pare District, Yupia. In the meantime, before execution of the contract agreement between the respondent authorities and the petitioner, it appears that some persons had lodged a complaint before the Deputy Commissioner, Papum Pare District, Yupia, claiming to be the land donors seeking cancellation of the recruitment of staff through a private outsourced agency. 11. It is noticed that on 12.12.2024, a meeting was convened to review and discuss the recruitment process for non-academic posts for FTI, Arunachal Pradesh, whereby the Project Director (RD)-cum-DPDO, Yupia, DIPRO, ZPM, Upper Balijan, Gram Panchayat Chairperson, Rakap and 4 (four) land donors were present. The Hon’ble MLA of 14th Doimukh (ST) Assembly Constituency was also present. During the meeting, the land donors had reiterated their Page No.# 6/9 objection to the recruitment through a third-party agency. After deliberation by all the members in the meeting, the Hon’ble MLA, 14th Doimukh (ST) Assembly Constituency, appears to have directed the Project Director (RD)-cum-DPDO, to initiate the recruitment process directly instead of engagement of private agency for providing outsourced manpower for the FTI, Arunachal Pradesh through tender. 12. Consequent thereto, the impugned order dated 12.12.2024 was issued by the Deputy Commission, Papum Pare District, which is extracted hereinbelow: “ GOVERNMENT OF ARUNACHAL PRADESH OFFICE OF THE DEPUTY COMMISSIONER PAPUM PARE DISTRICT: YUPIA File No. PD(RD)/PP/FTI/2024 Dtd 12th December, 2024 ORDER Whereas, as per the directives of SRFTI, Kolkata, this office has issued a letter inviting Notice Inviting Tender (NIT) vide advt. of even No. Dtd. 22/10/2024 for selection of outsourced Agency for engagement of contractual manpower of various categories of non-academic post under FTI, Arunachal Pradesh. Whereas, accordingly, the Letter of Intent for the successful bidder was issued in favour of M/s. B. M. Stores, Papumpare District vide LOI of even No. Dtd 06/11/2024. Whereas, consequent upon receipt of a complaint letter lodged by Shri. Taba Kunia, GPC, Nabam Radhe, Land Donor and others regarding cancellation of recruitment of staff through private Outsourced Agency and based on that complaint, the agreement in between PD (RD) and the successful LOI holder couldn't be executed. Now therefore, under the above circumstances the tender for selection of outsourced agency for engagement of staff for FTI is hereby stand cancelled till further order. (Jiken Bomjen) APCS Page No.# 7/9 Deputy Commissioner Papum Pare District “ 13. Perusal of the impugned order shows that consequent upon the complaint lodged by some persons claiming to be the land donors regarding cancellation of engagement/recruitment of staff at FTI, A. P. through a private outsourced agency and based on the complaint, the contract agreement could not be executed. Accordingly, the tender for selection of outsourced agency for engagement of staff for FTI. A.P. was cancelled. Thus, the reason for cancellation sought to be made is only on the complaint of certain land donors and verbal direction of the Hon’ble MLA 14th Doimukh (ST) Assembly Consistency, which, in the considered view of this Court, does not appear to be based on any reasonable ground rather clearly an act of arbitrariness. 14. It is true that the authorities have the power and authority to decide to or not to resort to the selection of an outsourced manpower agency for engagement of contractual staff for FTI, Arunachal Pradesh. However, since an open tender was issued inviting eligible bidders to participate for such selection of outsourced manpower, in response to which 3 (three) bidders participated, and the petitioner, having been found most suitable, was issued the Letter of Intent and the petitioner has also submitted his acceptance and deposited the performance bank guarantee/security deposit for Rs.19,72,800/- as per the terms of the LOI, the cancellation of the tender solely on the basis of complaint by some persons claiming to be land donors, in my view, is not justified. The authority, as noted above, does have the power to cancel a tender, provided such cancellation is based on valid reasons and is in the public interest, but in the present case, the reason assigned for cancellation appears to be unreasonable and not based on the public interest. Page No.# 8/9 15. The respondent authorities, by filing an additional affidavit reiterating the stand taken in the affidavit, have submitted that pursuant to the complaint received from the land donors, a letter was issued seeking clarification from FTI, Arunachal Pradesh, regarding the alleged job assurance to the land donors. Accordingly, the FTI clarified that the Deputy Commissioner, Yupia was fully authorized to appoint an outsourced agency or a third-party agency/or government body by following the due procedure for recruiting/engagement of manpower for FTI, Arunachal Pradesh. A coordination meeting was held on 13.12.2024, attended by the complainants, land donors, ZPM, including ZPM Upper Balijan, who is the proprietor of M/s B. M. Store, the petitioner herein, and M/s Camdir Trading Company. During the coordination meeting, the matter was discussed minutely with land donors and proprietors of M/s B. M. Store and M/s Camdir Trading Company. The meeting concluded with a decision to cancel the engagement of private agency for engagement of manpower for FTI, Arunachal Pradesh. 16. Pursuant the said decision, the NIT was cancelled vide the impugned order dated 12.12.2024. Thereafter, the District Urban and Development Agency, Papum Pare District, was appointed as the nodal department to oversee the recruitment process of FTI, Arunachal Pradesh and accordingly, a fresh advertisement was issued on 21.12.2024 for a walk-in-interview. Accordingly, the interview was conducted from 02.01.2025 to 17.01.2024 for various non- academic posts of FTI, Arunachal Pradesh. Thereafter, a select list was published on 18.01.2025 and appointment orders were issued on 20.01.2025 to all the selected candidates. Upon completion of their training, the selected candidates are serving at the FTI, Arunachal Pradesh. 17. Having considered above, although the cancellation of the NIT for Page No.# 9/9 selection of an outsourced agency for engagement of contractual staff for FTI appears to be not based on good reason or justification, since recruitment process by way of advertisement and walk-in-interview having been concluded, it will be difficult, in the present situation and circumstances to grant any relief to the petitioner. 18. The case laws relied on by the learned counsel for the petitioner are the well settled principle of law to which there would not be any quarrel. However, considering the facts and circumstance of the present case, I am of the considered view that same would not advance the case of the petitioner. 19. In view of the discussions made hereinabove, I am of the considered view that the respondent authorities ought not to have cancelled the tender process, which has been initiated for selection of an outsourced agency for engagement of contractual staff for FTI, Arunachal Pradesh, which culminated into an issuance of Letter of Intent and submission of acceptance letter, including deposit of Rs.19,72,800/- as performance guarantee/security deposit. However, considering the factual circumstances, particularly the selection process followed by interview having been completed and the selected candidates have been appointed and stated to be working at the FTI, Arunachal Pradesh, no relief can be granted to allow the petitioner to execute the work in terms of the LOI dated 06.11.2024. However, the petitioner is at liberty to avail the appropriate remedy for any damages as may be permissible under the law. 20. The writ petition stands disposed of. No order as to cost(s). JUDGE Comparing Assistant