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2020 Supreme(Bom) 1010

IN THE HIGH COURT OF BOMBAY AT NAGPUR BENCH
Sunil B Shukre, Avinash G Gharote, JJ.
R.k. Chavan Infrastructure Pvt Ltd - Appellant
Versus
State Of Maharashtra - Respondent
Civil Writ Petition No. 6185 of 2019
Decided On : 28-10-2020

Advocates Appeared:
M.G. Bhangde, Advocate, V.V. Bhangde, Advocate, N.P. Mehta, Advocate, A.D. Mohgaonkar, Advocate, Chaitanya Mohgaonkar, Advocate, S.P. Bhandarkar, Advocate, P.P. Deshmukh, Advocate

Headnote:(A) Public Works Department Tender Process - Eligibility Criteria - The cancellation of the experience certificate dated 5/12/2018 by the Chief Engineer, MSRDC, raised questions of authority and fraudulent intent, affecting the petitioner's status as L-1. Court found lack of clarity in TEC's decisions and called for compliant procedures. The legitimacy of the tender process was compromised due to favoritism seen post-cancellation where swift favor was shown to other parties. (Paras 1-27)

(B) Tender law & principles of natural justice - The court emphasized the necessity of personal hearing before adverse decisions, highlighted the importance of adhering to tender requirements and maintaining proper documentation - actions that must be free from arbitrariness and favoritism. (Paras 17, 19, 20)

Table of Content
1. challenge to technical eligibility criteria. (Para 2 , 3)
2. arguments regarding disqualification of bids. (Para 4 , 5 , 6)
3. court's observations about tender evaluation process. (Para 8 , 10 , 12)
4. legal implications of tender eligibility criteria. (Para 14 , 16)
5. final determination of tender process validity. (Para 20 , 21 , 26)

JUDGMENT

Avinash G. Gharote, J. - Heard. Rule. Rule made returnable forthwith. Heard finally with the consent of the learned Counsel for the parties.

2. By the present petition challenge is raised (a) to the communication dated 31/8/2019 issued by the respondent no.4 (the letter by which, the offer of the petitioner, which was initially accepted as L-1 is rejected -Annexure-12/pg.191); (b) the communication dated 20/8/2019 issued by the respondent no.5 (Annexure - 9/pg. 182), whereby the work experience certificate issued in favour of the petitioner by the respondent no.6 was canceled); (c) the communication dated 9/8/2019 (Annexure -24-A/ pg.361-C & D), whereby the objection of the petitioner dated 8/8/2019, to the eligibility of the respondent no.7 has been rejected and (d) a further declaration has been sought that the respondent no.7 does not satisfy the technical eligibility criteria of the subject tender process and is as such disqualified to participate therein.

3. The facts leading to the present petition are as under :-

    (a) On 29/6/2009, a notice inviting tender (NIT) was published by the respondent no.4, bearing No.86399 for 2019-20 (second call), in the local newspapers as well as the website of the respondent no.1 inviting offers for the work of "improvement to Chargaon Shirpur Kalmana to Chandrapur District border (Wanoja) in km.182/100 to 204/500, SH-317 (length 16.900 km.) under CRF. Tq. Wani, District : Yavatmal". Approximate value of the work was Rs.47,56,07,119/-. The bid security amount was Rs.23,79,000/-. The period of completion was 18 calendar months including monsoon. The terms of the tender permitted bids from joint ventures.

    (b) On 11/7/2009 the petitioner submitted its bid. The respondent no.7 a Joint Venture comprising of Bajoria Construction Company Pvt. Ltd. (BCCPL), the lead partner and Gughane Infrastructure Pvt. Ltd. (GIPL), the junior partner in the JV, also submitted its bid. One SDPL- SGS (JV), Pune also submitted its bid.

    (i) To satisfy the qualifying criteria as contained in Clause 4.4 A (a), the petitioner had submitted the certificate of Govind D. Chevale & Associates Chartered Accountants (pg.153).

    (ii) To satisfy the qualifying requirement in Clause 4.4 A (b) and (c), the petitioner had submitted a certificate dated 05/12/2018 issued by the Executive Engineer, MSRDC, Pune (pg.154). As this certificate, is the bone of contention, certain factual position leading to the issuance of this certificate, being material, need to be mentioned here :-

    1

    31/03/17

    The MSRDC/respondent no.5, had awarded the work of rehabilitation and upgradation of Khamgaon- Mehkar- Sultanpur- Lonar-Mantha -Vathurphata- Pratur- MazalgaonDharur -Kaij -Kalamb- Barshi- KurudwadiPandharpur- Sangola road connecting NH-166, to one Madhucon Projects Ltd. , a company having its registered office at Madhu Complex, 1-7-70, Jublipura, Khammam-507003, Telengana, under an agreement dated 31/3/2017. The total cost of the project was Rs.173,60,00,000/- and road length was 34.35 kms.

    2

    15/02/18

    Madhucon Projects Ltd. under an MOU (pg.161) sub-contracted 49% of this work valued at Rs.96,13,11,855/- for a length of road measuring 16.835 kms. to the petitioner .

    3

    16/08/18

    Approval to the sub-contracting was granted by the Executive Engineer, MSRDC/ respondent no.6.

    4

    01/10/18

    Work under the sub-contract was commenced by the petitioner.

    5

    12/10/18





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