SUPREME COURT OF INDIA
Surya Kant, Joymalya Bagchi, JJ.
Maha Mineral Mining & Benefication Pvt. Ltd. – Appellant
Versus
Madhya Pradesh Power Generating Co. Ltd. & Anr. – Respondents
Civil Appeal No. 11726 of 2025 (Arising out of SLP (C) No.1940 of 2025)
Decided On : 09-09-2025
| Table of Content |
|---|
| 1. overview of the tender process and bids. (Para 1 , 2 , 3) |
| 2. arguments regarding technical bid disqualification. (Para 4 , 5 , 6) |
| 3. respondent's argument on submission implicitness (Para 7) |
| 4. high court's findings on jv agreement. (Para 8 , 9 , 10) |
| 5. court's analysis on clause interpretation (Para 12) |
| 6. court's analysis of disqualification criteria. (Para 13 , 14 , 15 , 16 , 17 , 18 , 19 , 20) |
| 7. contention on spare washing capacity and remand. (Para 21 , 22 , 24) |
| 8. disqualification under clause evaluation (Para 23) |
| 9. final ruling and remand for further consideration (Para 25) |
| 10. final judgement and decision on appeal. (Para 26) |
JUDGMENT :
1. Leave granted.
Factual Matrix
2. In response to Notice Inviting Tender1[ID 2024_MPPGC_341576_1, hereinafter referred to as “NIT”.] dated 17.05.2024, issued by the 1st respondent for the purpose of run-of-mine (ROM) coal beneficiation and managing logistics from Western Coalfields Ltd.2[Hereinafter “WCL”.] (Nagpur area) sources for Shree Singaji Thermal Power Project, Khandwa (Madhya Pradesh), the appellant and two others, namely the 2nd respondent3[Rukhmai Infrastructure Pvt. Ltd.] and one M/s NN Global Mercantile Pvt. Ltd. had submitted their bid.
3. As NN Global Mercantile Pvt. Ltd. could not furnish earnest money deposit, only the appellant and the 2nd respondent remained in the fray. On 04.07.2024, the Tender Evaluation Committee4[Hereinafter referred to as “The Committee”.] while referring to Clause 5(D)5[Clause 5(D): “Past Experience: Copies of successfully executed orders (including part executed) in the name of bidder for same or similar work {similar work means coal lifting from mines of CIL subsidiaries or SCCL area, coal beneficiation (through wet process), movement of washed coal by road from washery to railway siding and movement of washed coal through Railways with experience in liaisoning with Railways/ CIL subsidiaries or SCCL area, i.e., arranging rakes, dispatches coal from own or leased Private siding or Goods shed Railways siding by loading of washed coal into railway wagons through own arrangement with monitoring the rake movement etc. up to the destination Power house}. Bidder is allowed to use past experience of their previous Consortium or JV (proportionate to its share in that consortium if defined in the Consortium Agreement, otherwise, lead partner if not defined in the Consortium) to meet out the past experience criteria of the tender. The order copies should indicate the above w/ork for 4 Lakh MT (4,00,000 MT) quantity or more in stale Owned Power Generating Companies or Other Captive Power Utilities of PSU or NTPC or Govt. Industries / Departments or Semi Govt. Industries / Departments or PSUs or Nodal Agency of any PSUs in India executed in last five years ending with initial date of opening of bid are to be uploaded. This order execution should be within a period of twelve (12) months. It may be through single or multiple orders (in parallel), but in case of multiple orders; these should be within a single span of time period of twelve (12) months.
1. The work execution certificate by the customers along-with self-attested un-priced copies of aforesaid work order(s) should be submitted.
2. For Past performance certificates - If worked with MPEB/ MPSEB/ MPPGCL in past for similar work, then it is mandatory to provide Satisfactory Performance Certificate for the same. Failing this, the offer shall not be considered.” (emphasis supplied)] of the NIT rejected the appellant’s technical bid holding as follows –
The firm has used the credentials of their consortium M/s Hind-Maha-Mineral LLP for meeting out the past experience
Tender conditions must be clear; rejection based on non-submission of non-mandatory documents is unjustified.
The court upheld the validity of tender disqualification based on non-compliance with specified documentation requirements, affirming the decision-making integrity of the evaluation committee.
The court emphasized strict compliance with tender conditions, ruling that the Local Content Certificate must be submitted in the name of the Joint Venture, and deviations from prescribed formats are....
The court ruled that tender eligibility criteria must explicitly state disqualifications, allowing joint venture experience to be considered for bidder qualifications, ensuring clarity and fairness i....
Joint Venture Agreements must establish joint and several liabilities; non-compliance results in bid rejection.
Point of law: Court must exercise its discretionary power under Article 226 with great caution and should exercise it only in furtherance of public interest and not merely on the making out of a lega....
Compliance with tender conditions, including financial capacity, submission of necessary documents, and establishment of required past experience, is crucial for the acceptance of bids.
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