IN THE HIGH COURT OF KARNATAKA, DHARWAD BENCH
M.I.Arun, Umesh M Adiga, JJ.
Tungabhadra Board Tungabhadra Dam, Hospet, Karnataka - Appellant
Vs.
Ferro Concrete Construction (India) Pvt. Ltd. - Respondent
Writ Appeal No. 100566, 100567 Of 2023
Decided On : 20-03-2024
Tender Contracts - Dam Safety Works - Tender No.92/2022, Tender No.93/2022.
Fact of the Case:
The dispute involves the awarding of two contracts for Dam Safety Works to respondent No.3 by respondent No.1. The petitioner, whose bid was rejected, alleged mala fides and favoritism in favor of respondent No.3.
Finding of the Court:
The court found that the petitioner had the necessary qualifications for the tender works, while respondent No.3 did not possess the required qualifications. The court set aside the contract awarded to respondent No.3 and directed a re-evaluation of the tender process.
Issues: The issues involved the evaluation of technical qualifications, alleged mala fides, and favoritism in the tender process.
Ratio Decidendi: The court's decision was based on the evaluation of the technical qualifications of the bidders and the presence of mala fides and bias in the tender process.
Final Decision: The writ appeals were allowed, and the impugned order was set aside, with the petitioner reserved the liberty to approach the Civil Court or other forums for redress.
JUDGMENT :
Aggrieved by the order passed in Writ Petition No.100625/2023, the respondents No.1 and 2 therein have preferred Writ Appeal No.100566/2023 and respondent No.3 therein has preferred Writ Appeal No.100567/2023.
2. As both these writ appeals emanates from the same impugned order, they are taken up together and heard.
3. For the sake of convenience parties herein are referenced to as per their status in the writ petition.
4. The dispute pertains to awarding of two contracts in favour of respondent No.3 by respondent No.1 as mentioned below :
Work-B:- (Tender Notice No.93/2022-23 dated 23.09.2022) pertains to providing curtain grouting in Drainage Gallery for both Non-Spillway and Spillway portion form Ch,100’ to 3897.64’ providing pointing to downstream of spillway and non-spillway portions and improvements to electrical system at Tungabhadra Dam Right Side.”
5. The petitioner was also a bidder, whose bid has been rejected by respondent No.1. Aggrieved by the same, he preferred Writ Petition No.100625/2023. The petitioner alleged mala fides and favouritism in favour of respondent No.3 and contended that the petitioner has the necessary qualifications to make a bid for the tender works and on the contrary, respondent No.3 did not possess the necessary qualifications and inspite of it, respondent No.1 has awarded both contracts in favour of respondent No.3.
6. Per Contra, the respondents contended that the petitioner did not have the necessary qualifications and respondent No.3 possess all the required qualifications and respondent No.1 after following the due process has awarded the contract in favour of respondent No.3 in the manner known to law.
7. The learned Single Judge evaluated the terms of the tender insofar as it relates to the qualifications required by the successful bidder and came to the following conclusions :
QUALIFICATION CRITERIA FOR OPENING OF PRICE BID - TENDER No.92/2022 (TENDER ID-546007):
To qualify for the award of the contract each bidder in its name should have, good experience in execution as original agency in similar works of Dam Safety Works i.e Construction or rehabilitation of Dam involving all ingredients viz Construction/ major repair of Masonry/ Concrete Dams/Barrages including upstream face pointing / drilling / grouting / Reaming of Porous and Drainage Holes / Treatment to Contraction Joints in State and Central Government or undertaking, during the last ten years specified i.e., the years 2012- 13 to 2021-22 financial years updated to 2022-23 (i.e., they should be immediately preceding the financial year in which tenders are invited), satisfying the qualification shown under para "Bid Capacity", only are eligible to tender.
(a) Satisfactorily completed as a prime contractor similar works of Dam Safety Works i.e. Construction or rehabilitation of Dam involving all ingredients viz Construction/ major repair of Masonry/ Concrete Dams/Barrages including upstream face pointing/ drilling/ grouting/ Reaming of Porous and Drainage Holes/Treatment to Contraction Joints value not less than Rs.7,20,37,795.50/- in any one year.
(b) Executed in any one year, the following minimum set of quantity of works in last ten years i.e., from 2012-13 to 2021-22.
| 1. Racking, cleaning and pointing on upstream face of Masonry joints with UV resistant, anti-shrink and high strength materials like cements using crystalline technology (CT) Polymer/Equivalent cementations materials | 4351.90 Sqm |
| 2. Drilling of inclined / vertical holes in masonry/ concrete/ Hard rock body | 2855.50 Rmt |
| 3. Grouting | 428.25 MT |
| 4. Reaming of |
The court's decision emphasized the importance of evaluating technical qualifications in the tender process and the need to address any mala fides or bias.
Essential tender eligibility criteria must be strictly complied with, and any deviation leads to arbitrary exercise of power, warranting judicial review.
Judicial review in public procurement is limited; courts refrain from interference unless clear evidence of arbitrariness or bad faith is established.
The court emphasized the need for restraint and deference to the tendering authority's interpretation of tender documents, especially in technical matters, and highlighted the importance of public in....
Judicial review of tender processes is limited; courts should respect the authority's discretion unless there is clear evidence of arbitrariness or irrationality.
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