IN THE HIGH COURT OF JUDICATURE AT BOMBAY
S.V. GANGAPURWALA, SANDEEP V. MARNE, JJ.
Gujarat Apollo Industries Ltd. – Appellant
Versus
The State of Maharashtra – Respondent
Writ Petition No. 1880 of 2023
Decided on : 15-03-2023
Constitution of India,1950 - Challenges tender notice - Seeks direction for issuance - Order in pursuance - Consortium - Bidders - Technical issues - Convey willingness to execute - Willingness - Tender process - Whether tender process initiated years ago should still be continued or fresh tender process should be adopted - Held, Though all reasons stated in said proposals may not stand judicial scrutiny Municipal Commissioner is of opinion that Petitioner’s consortium would not be in a position to execute contract satisfactorily at rates agreed in year in view of escalation in rates - It is pointed out that as per District Schedule of Rates rate of bio-mining is per ton whereas Petitioner’s consortium has agreed to execute work of Bio-Mining at per ton - He has opined that at low rates it is impossible to deliver satisfactory solid waste management services - Standing Committee of Municipal Corporation has agreed to invite fresh tender by adopting resolution - In this manner General Body Standing Committee and successive Municipal Commissioners have changed their decisions resulting in earlier tender process remaining indecisive - Petition Dismissed.
JUDGMENT :
SANDEEP V. MARNE, J.
1. Rule. Rule made returnable forthwith. With the consent of the parties, the petition is taken up for final hearing.
2. By this petition, petitioner challenges tender notice dated 24th January 2023 for the work of Processing and Disposal Day to Day Solid Waste generated in Sangli-Miraj & Kupwad Municipal Corporation. Petitioner also seeks direction for issuance of work order in pursuance of confirmation letter dated 25th January 2022 issued to it after completion of the earlier tender process.
3. Respondent No.2-Municipal Corporation floated a tender on 4th May 2020 for twin works of (A) Processing and Disposal of Day to Day Solid Waste generated in Sangli-Miraj & Kupwad Municipal Corporation area and (B) Scientific Dumpsite Land Reclamation through Bio-Mining, Resource Recovery and Scientific Rejects Disposal on Samdoli and Bedag site of the Municipal Corporation (Work). A consortium named Eco Pro Environmental Services comprising 4 companies namely (i) Gujrat Apollo Industries Ltd., (ii) Eco Pro Environmental Services, (iii) Susajja enterprises Pvt. Ltd. and (iv) Vardig Pvt Ltd. submitted its bid in pursuance of the tender notice. Petitioner is one amongst the said 4 companies of the consortium. The consortium was found technically qualified. The financial bids were opened on 12th August 2020. The consortium of petitioner was found L1 in respect of the work of day to day disposal of solid waste with the rate of Rs.490 per ton whereas the consortium of Group Consultancy Services Ltd. Navi Mumbai was found L2 with the rate of Rs. 711 per ton. So far as the work of Bio-Mining is concerned, consortium of petitioner was found L2 with rate of Rs. 652 per tonne whereas Samarth Softec Services Pvt. Ltd. Was found L1 with rate of Rs.396 per ton. Both set of bidders were called for discussions on technical issues by letter dated 13th August 2020. By letter dated 6th August 2021 the validity period of the bids was extended by the Municipal Commissioner by a period of 180 days from 8th July 2021.
4. By letter dated 25th January 2021 the Municipal Commissioner called upon the consortium of petitioner to convey willingness to execute the work of day to day solid waste at Rs.490 per metric ton and the work of Bio- Mining at Rs.296 per metric ton. By its letter dated 25th January 2022 the consortium of petitioner convened willingness to operate at the rate suggested by the Municipal Commissioner.
5. However, instead of issuing work order in favour of petitioner the Municipal Corporation issued fresh tender notice dated 24th January 2023 for both the works. Petitioner is aggrieved by the fresh tender notice dated 24th January 2023 and seeks cancellation of fresh tender process and issuance of work order in it’s favour.
6. Appearing for petitioner Mr. Wani the learned counsel would submit that the respondent Municipal Corporation has acted in an arbitrary manner in inviting fresh bids even though petitioner was selected for issuance of work order in the previous tender process. That the fresh tender is resorted to without giving any intimation to petitioner about the outcome of its bid in the previous process. That petitioner showed willingness to work at the rates suggested by the Municipal Commissioner and that therefore there was no reason for the Municipal Corporation to resort to fresh bids. That the State Government had also convened approval to the Municipal Corporation for issuance of work order in favour of petitioner. Mr. Wani would further contend that the impugned action is taken by the Municipal Corporation on account of baseless complaint made by the local MLA.
7. The petition is resisted by the respondent Municipal Corporation. Mr. Walawalkar, the learned counsel appearing for the respondent No.2 Corporation would submit that the petition is not maintainable as the same is not filed by all the consortium partners on whose behalf the bid was submitted. He would further submit that no right is created in
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SupremeToday
The main legal point established in the judgment is that the award of work by the Municipal Corporation in favor of the respondent, after finalizing the tender process, was not an extension of the ea....
Lowest bidder has no vested right to contract; authority may cancel tender for valid reasons like cartel without malice; tender conditions not judicially reviewable unless arbitrary.
A public authority's decision to cancel a tender must be reasoned and not arbitrary; failure to provide justifications exposes such decisions to judicial scrutiny.
Disqualification of a tender bidder must adhere to principles of natural justice, but can be justified based on credible complaints regarding past performance.
The validity of administrative decisions must be judged on the basis of reasons existing on record, and the authority cannot provide new/additional reasons when the Court calls for them as they must ....
The tendering authority can cancel a tender for a single bidder if it serves public interest by ensuring greater competition.
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