IN THE HIGH COURT OF KARNATAKA AT BENGALURU
M. Nagaprasanna, J.
Sree Gajanana Power Controls Pvt. Ltd. – Petitioner
Versus
The Deputy General Manager (Ele) Operations-I Bangalore Electricity Supply Company Limited And Ors. – Respondents
Writ Petition No.20761 & 20762 OF 2022 (GM - TEN)
Decided On : 09-11-2022
Tender Rejection - Technical Bids - Infrastructure Endorsement - Clause 15, Clause 12.11 - The court discussed the technical requirements of the tender, specifically focusing on the endorsement of infrastructure by the Executive Engineer as a mandatory condition. The petitioner's failure to obtain the required endorsement and the subsequent attempt to complete the document by signing in place of the Executive Engineer were considered as flaws leading to the rejection of the bid. The court emphasized that the condition of infrastructure endorsement was essential for submitting the technical bid and could not be fulfilled post-award of the contract. The court also cited relevant judgments to support the principle that judicial review cannot substitute opinions on tender conditions and emphasized the need for minimal interference in contractual matters involving technical issues.
Fact of the Case:
The petitioner's technical bids for a tender issued by BESCOM were rejected due to the absence of endorsement of infrastructure by the Executive Engineer, as mandated by the tender conditions. The petitioner sought a declaration that his bids were responsive.
Finding of the Court:
The court found that the petitioner's failure to obtain the required endorsement and the subsequent attempt to complete the document by signing in place of the Executive Engineer were flaws leading to the rejection of the bid. The court emphasized the essential nature of the infrastructure endorsement condition for submitting the technical bid and highlighted that it could not be fulfilled post-award of the contract.
Issues: The key issues revolved around the mandatory requirement of infrastructure endorsement by the Executive Engineer as part of the technical bid submission and the petitioner's failure to comply with this condition.
Ratio Decidendi: The court's decision was based on the interpretation of the tender conditions, specifically Clause 15 and Clause 12.11, and the emphasis on the essential nature of the infrastructure endorsement condition for submitting the technical bid. The court also cited relevant judgments to support the principle of minimal interference in contractual matters involving technical issues.
Final Decision: The court dismissed the petitioner's claim, finding no merit to entertain the petitions, and emphasized the need for minimal interference in contractual matters involving technical issues.
ORDER :
The petitioner common in both these petitions calls in question the rejection of his technical bids submitted pursuant to notice inviting tenders dated 28-03-2022 and consequently seeks a declaration that his bids are responsive.
2. Heard Sri.Rajendra.M.S., learned counsel for M/s Holla and Holla Associates appearing for petitioner, Sri.S.Sriranga, learned senior counsel appearing for respondent No.1 and Sri.M.Vinod Kumar, learned Additional Government Advocate appearing for respondent No.2.
3.Brief facts that lead the petitioner to this Court in the subject petitions, as borne out from the pleadings, are as follows:-
The petitioner claims to be in the business of repair and distribution of transformers for close to 25 years and further claims that he has a recognized name in the reconditioning and distribution of transformers. The 1st respondent/Bangalore Electricity Supply Company Limited (‘BESCOM’ for short) issued a notice inviting tenders on 28-03-2022 for the work of repair and reconditioning 11 KV class single coil/multi coil conventional and 3, 4, 5 star rated failed distribution transformers of various capacities from 25 to 100 KVA and other allied works of lumpsum percentage on rate contract basis. The petitioner in both these cases submits his bids for Doddaballapura Taluk, Nelamangala Division of BESCOM. The tender was to be a two cover tender -first part would be the technical bid and the second the price bid. The last date for submission of technical bid was 26-04-2022. As observed hereinabove, the petitioner participates in the competitive bidding process finding himself eligible in terms of the notice inviting tenders, as according to him, he was qualified in all the terms and conditions and submits all necessary documents within the time stipulated. EMD of Rs.1,50,995/-was also deposited as required in terms of NIT. The technical bids of the petitioner come to be rejected on 01-10-2022, the same was displayed in the e-procurement portal of BESCOM. The petitioner, on the ground that he was the lowest bidder, submitted a representation seeking BESCOM to furnish the reason for rejection. No reply was received on the said representation of the petitioner. He appears to have come to understand that infrastructure facilities depicted by him in the tender documents were not countersigned by the competent authority i.e., the Executive Engineer of BESCOM. On the ground that they did not bear the signature endorsing the infrastructure, the petitioner’s bid had come to be rejected. It is this rejection that drives the petitioner to this Court in the subject petitions.
4. The learned counsel appearing for the petitioner would contend that the bids of the petitioner could not have been rejected as signature part of the document was a curable defect and is only ancillary to the terms and conditions; it is not the primary term or condition that would entail rejection of technical bids altogether. He would submit that only thing that is not found in the documents is attestation of infrastructure by the Executive Engineer.
5. On the other hand, the learned senior counsel Sri S. Sriranga appearing for the 1st respondent/BESCOM would refute the submissions to contend that the petitioner though had submitted everything did not get the infrastructure available with him endorsed by the competent authority. This was the necessity in the tender and without this, technical bid could not have been accepted. The learned senior counsel would submit that most of the tenderers bids who did not have this endorsement have been rejected at the technical bid stage itself, as the lacunae is uniformly applied to deny acceptance of technical bids. He would submit that the petition lacking in merit be dismissed.
6. I have given my anxious consideration to the submissions made by the respective learned counsel and have perused the material on record.
7. Notice inviting tenders is for short term. The conditions stipulated in the bid are depicted in
N.G. Projects Limited V. Vinod Kumar Jain And Others
The main legal point established in the judgment is the principle of minimal judicial interference in contractual matters involving technical issues, emphasizing the need to uphold tender conditions ....
Judicial review in tender matters is limited to assessing procedural fairness, not the merits of the tender conditions, which are determined by the tendering authority.
The court upheld the tendering authority's discretion in setting eligibility criteria, emphasizing limited judicial review focused on procedural fairness rather than the merits of the decision.
Judicial review in tender matters limited to arbitrariness or mala fides; courts defer to authority's bid compliance assessment, refusing substitution unless perverse.
Tender conditions must be interpreted harmoniously, and disqualification based on ambiguous requirements is arbitrary.
In tender matters, judicial review is limited; courts defer to tender authority's bid responsiveness assessment unless arbitrary, mala fide or perverse, prioritizing public interest in infrastructure....
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