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2021 Supreme(AP) 160

IN THE HIGH COURT OF ANDHRA PRADESH
U.Durga Prasad Rao, J.
M/s Ramanjaneya Prasanna Enterprises Pvt. Ltd. – Petitioner
Versus
The State of Andhra Pradesh and ors. – Respondents
Writ Petition No. 6880 of 2020
Decided On : 28-04-2021

Advocates:
Advocate Appeared:
For the Petitioner: Sreekanth Reddy Ambati
For the Respondent: G Ramana Rao (SC For Endowments Rayalaseemaregion), D V Sasidhar

Point of Law:Government contract – Tender - The judicial review on State administrative activities is limited inasmuch as the Constitutional Courts do not sit on appeal as to whether the decision is good and sound or not, but only probe into whether due procedure is followed i.e., whether the acts of authorities are just, fair and reasonable in the matter of allocating contracts

Headnote:

Andhra Pradesh Charitable and Hindu Religious Institutions & Endowments Act, 1987 - Constitution of India, 1950 - Articles 14 and 21 - Violative of principles of natural justice – Employment and service - Experience certificate from competent authorities - Whether due process is followed by 3rd respondent in awarding contract - Whether 3rd respondent has arbitrarily and illegally rejected technical bid of petitioner to favor 4th respondent and if so judicial review under Article 226 of Constitution of India can be made by this Court to test whether due process is followed by 3rd respondent in awarding contract - Whether such decision would have been taken otherwise in facts and circumstances of case - Whether choice or decision is made lawfully and not to check - Whether choice or decision is sound has ultimately held - Whether process adopted or decision made by authority is mala fide or intended to favor someone - Whether process adopted or decision made is so arbitrary and irrational that court can say decision is such that no responsible authority acting reasonably and in accordance with relevant law could have reached - Notification was issued by 3rd respondent inviting tenders for providing housekeeping mechanized sanitation sweeping and service through e-procurement platform – Earlier similar notification was issued for period and in response thereof petitioner 4th respondent herein and three others submitted their bids – However 3rd respondent cancelled said notification and issued present notification - At present instance petitioner and 4th respondent alone submitted their bids which were evaluated in two phases technical bid evaluation and financial bid evaluation and thereafter 3rd respondent declared that petitioner did not qualify in technical bid and ultimately confirmed tender in favor of 4th respondent who remained as lone contestant –

Finding of the Court:

Petitioner claims experience through certificates said to be issued by Health Officer TTD - On perusal contains two certificates one styled as to whomsoever it may concern said to be issued by Health Officer TTD wherein it is mentioned that petitioner carried out maintenance of cleanliness and sanitation work and work commenced and second certificate dated nil was also in similar lines stating that maintenance of sanitation for blocks done by petitioner was satisfactory - Whether Ex.P.32 certificates were uploaded by petitioner along with tender documents as there is no reference about in counter - Even if certificates are taken into consideration they will not meet requirement because said experience related to period whereas as per Clause out of two years experience one year experience - Quondam experience is of no relevance - Thus on a conspectus of record it is clear that petitioner failed to establish its experience in relevant field as specified in tender notification and therefore 3rd respondent rightly rejected its technical bid - Though petitioner vehemently argued that 3rd respondent showed bias towards 4th respondent it could not substantiate said allegation and hence said contention cannot be countenanced – Similarly petitioner’s further contention that in event a lone tendered was left over authorities have to issue fresh notification also does not hold any merit because 3rd respondent is best person to decide said aspect and Court cannot impinge upon 3rd respondent in that regard - At outset court do not find any merits in writ petition –

Result: Writ petition is dismissed

ORDER :

The petitioner seeks a mandamus declaring the action of 3rd respondent, who is the Executive Officer of Sri Varasiddhi Vinayaka Swami Vari Devasthanam, Kanipakam, in awarding tender to the 4th respondent pursuant to tender notification No.3632/S/2019, dated 03.02.2020 is illegal, arbitrary, violative of principles of natural justice and violative of Articles 14 and 21 of the Constitution of India and for consequential order.

2. Notification No.3632/S/2019, dated 03.02.2020 was issued by 3rd the respondent inviting tenders for providing housekeeping, mechanized sanitation, sweeping and service to Sri Varasiddi Vinayaka Swami Vari Devasthanam, Kanipakam from 01.03.2020 to 28.02.2022 through e-procurement platform. Earlier, similar notification was issued for the period from 01.01.2020 to 31.12.2021 and in response thereof, the petitioner, the 4th respondent herein and three others submitted their bids. However, the 3rd respondent cancelled the said notification and issued the present notification. At the present instance, the petitioner and 4th respondent alone submitted their bids which were evaluated in two phases i.e., technical bid evaluation and financial bid evaluation and thereafter, the 3rd respondent declared that the petitioner did not qualify in the technical bid and ultimately confirmed the tender in favour of the 4th respondent, who remained as lone contestant.

Hence the writ petition.

3. The petitioner’s case is that following the terms and conditions of the tender notification, the petitioner along with requisite EMD, has uploaded all the relevant documents on 15.02.2020. The pre-qualification/technical bid opening date was 17.02.2020 at 3.00 P.M. as per the notification. While so, on 29.02.2020 at 5.12 P.M., the petitioner received an e-mail that the evaluation of pre-qualification and technical stage was completed and in order to know the status the petitioner can view e-procurement portal. On enquiry through the e-procurement website, the petitioner was astonished to find that the tender was awarded to the 4th respondent on 29.02.2020 at 5.25 P.M. Thus, the grievance of the petitioner is that the technical bids submitted by the tenderers were opened on 17.02.2020 at 3.00 P.M. and their evaluation regarding technical qualification was made on 29.02.2020 at 5.12 P.M. and immediately within few minutes thereafter financial bid was opened and confirmed in favour of 4th respondent. In the process, the petitioner was not informed as to why its technical bid was rejected though it fulfilled all the conditions stipulated in the notification and submitted its bid. By not letting the petitioner know the reasons for discarding its bid, the 3rd respondent violated clause 5.1 of the tender notification which inter alia states that in case of any discrepancy or non-adherence of the conditions, the tender accepting authority shall communicate the same which will be binding both on the tender opening authority and the tenderer.

    (a) The further grievance of the petitioner is that no reasons were assigned for awarding contract to 4th respondent and on what basis the 4th respondent was chosen over the petitioner. If only one tenderer is left without competition, the authority cannot finalize the tender. Thus, all the acts of the 3rd respondent are highly doubtful and they were intended to somehow finalize the tender in favour of the 4th respondent.

4. The 3rd respondent filed counter opposing the writ petition inter alia contending thus:

    (a) The technical evaluation will be made purely on the basis of supporting documents uploaded/furnished by the bidders and the EMD amount paid with reference to the eligibility prescribed. Upon failure to meet the relevant eligibility criteria, the bid will be disqualified. In the tender notification itself it was categorically stated that

Last date and time for receipt of bids:

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