Sagar Lookouts vs Maharashtra Housing and Area Development Authority

Judicial Analysis Court Copy Headnote Facts Arguments Court observation

2022 Supreme(Bom) 730

IN THE HIGH COURT OF BOMBAY
DIPANKAR DATTA, M.S. KARNIK, JJ.
Sagar Lookouts – Respondents
Versus
Maharashtra Housing and Area Development Authority & Ors. – Respondents
Writ Petition (L) No. 6731 of 2022
Decided on : 14-07-2022

Advocates:
Advocate Appeared:
For the Appellant : Mr. Ravi Kadam, Mr. Shreeyansh U. Lalit, Mr. Nikhil Waje, Mr. Vishesh Srivastav, Mr. Prem Gada, Ms. Shravani Manore, Mr. Ashutosh R. Gole
For the Respondent: Dr. Milind Sathe, Mr. P. G. Lad, Ms. Sayali Apte, Mr. Milind More, Mr. Hemant Haryan, Mr. Ram S. Apte, Mr. Sachin Dhakephalkar

Headnote:(A) Constitution of India - Article 226 - Writ of mandamus - Tender eligibility criteria - Petitioner declared ineligible for not fulfilling experience requirement - Court held that exclusion of partner's experience in another firm was unjust - Experience of partners considered relevant for determining eligibility - Decision quashed, and authority directed to reconsider bid. (Paras 37)

(B) Tendering Authority's discretion - Proper standard of administrative law requires adherence to fairness and rationality in eligibility assessment - Criteria must be scrutinized from a prudent business perspective. (Para 18)

(C) Joint ventures and experience attribution - Experience of partners can be considered in evaluating firm's eligibility without constituting a consortium. (Para 23)

Facts of the case:
The petitioner challenged the eligibility ruling by MHADA for failing to meet the requirement of 50 hoardings, despite having 47 and sought inclusion of partner’s experience in another firm.

Findings of Court:
The Court determined that the experience of a partner should be considered, allowing the petitioner's writ to proceed.

Issues: Whether the experience of a partner in another firm can be included when evaluating eligibility criteria for tenders.

Ratio Decidendi: The court clarified that the experience of a partner must be taken into account to ensure fair assessment, particularly when the partnership firm's total experience falls short.

Result: Writ petition allowed and challenged decision quashed.

Table of Content
1. petition filed for quashing ineligibility decision. (Para 1)
2. eligibility criteria defined in tender documents. (Para 5 , 6 , 7)
3. submission of explanations and rejections during bid evaluation. (Para 10 , 11 , 12)
4. arguments focusing on the consideration of partner's experience. (Para 15 , 16 , 17)
5. judicial review standards in evaluating tender decisions. (Para 18 , 19 , 20)
6. experience requirements and definitions of eligibility. (Para 23 , 26)
7. court's explanation of the discernment and construction of experience in a partnership context. (Para 28)
8. reevaluation required based on partner's valid experience. (Para 31)
9. writ petition disposed directing reconsideration of the bid. (Para 37)

JUDGMENT :

M.S. KARNIK, J.

1. The petitioner – Sagar Lookouts (hereafter “Sagar Lookouts”, for short), a duly registered partnership firm has filed this writ petition under Article 226 of the Constitution of India for the following substantive reliefs :-

B. The Respondents be directed to withdraw and cancel the Tender No.4 dated 18/02/2022 (Exhibit – I).

C. In the alternative, the Respondent No.1 and 2 be restrained and prohibited from rejecting the technical bid of the petitioner in Tender No.4 on the same grounds as mentioned in the declaration of ineligibility (Exhibit – H) in respect of Tender No.3.

C-1. That the record and proceedings the decision of the Respondent No.2 published on 12/04/2022 (Exhibit - L) thereby declaring the Petitioner as ineligible in Tender No.4 dated 18/02/2022 (Exhibit – I), be called for and after examining the legality, validity and propriety thereof, the decision of the Respondent No.2 published on 12/04/2022 (Exhibit – L) thereby declaring the Petitioner as ineligible in Tender No.4 dated 18/02/2022 (Exhibit – I), be quashed and set aside and the Respondents be directed to hold the bid of the Petitioner as eligible and take further proceedings accordingly.”

2. At the outset it is pertinent to mention that by an order dated May 6, 2022, this Court had granted interim relief. The respondent no. 1 - Maharashtra Housing and Area Development Authority (hereafter “MHADA”, for short) was directed not to issue work order for a period of ten days. On May 13, 2022, the coordinate Bench passed the following order protecting the interest of both the parties, the relevant portion of which reads thus :-

A] The petitioner shall file an undertaking of its Managing Partner viz. Mr. P.N. Joshi, who shall unconditionally undertake to pay amount as may be determined by this Court. Let such undertaking be filed on 17.05.2022 in the Registry and copy shall be furnished to MHADA forthwith.

B] Since all the financial bids have been opened, if the petitioner’s bid is found to be lower than that of project proponent, Mr. Jagtiani undertakes to withdraw the petition within a week of having been informed to them. That statement is accepted.

C] In view of the above, it will be open for MHADA to open the petitioner financial bid without prejudice to MHADA’s rights and contentions.

D] In view of above, we believe that the interest of MHADA is sufficiently protected. Hence, the ad-interim order dated 06.05.2022 shall continue to operate till 08.06.2022.

E] Stand over to 09.06.2022.”

3. The interim order was continued from time to time.

4. Mr. Ravi Kadam, le

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2022 Supreme(Bom) 730

IN THE HIGH COURT OF BOMBAYDIPANKAR DATTA, M.S. KARNIK, JJ.Sagar Lookouts – RespondentsVersusMaharashtra Housing and Area Development Authority & Ors. – RespondentsWrit Petition (L) No. 6731 of 2022Decided on : 14-07-2022

Cases Referred (10)

IN THE HIGH COURT OF BOMBAY
DIPANKAR DATTA, M.S. KARNIK, JJ.
Sagar Lookouts – Respondents
Versus
Maharashtra Housing and Area Development Authority & Ors. – Respondents
Writ Petition (L) No. 6731 of 2022
Decided on : 14-07-2022