IN THE HIGH COURT OF JUDICATURE AT BOMBAY
Devendra Kumar Upadhyaya, Arif S. Doctor, JJ.
M/s. Balaji Surgical, Through its Proprietor - Petitioner
Versus
State of Maharashtra, Through the Government Pleader and ors. – Respondents
Writ Petition No.9202 of 2023 With Interim Application No.18412 of 2023
Decided On : 06-02-2024
No Conviction Certificate - Tender Disqualification - State of Andhra Pradesh (Now State of Telangana) Vs. A. P. State Wakf Board and others, 2022 SCC OnLine SC 159 - The court considered the introduction of a substantive term through a corrigendum, the conduct of the tendering authority, and the fairness of the disqualification process. The court found the conduct of the tendering authority to be arbitrary, unreasonable, and biased, leading to the disqualification of the petitioner. The court held that the disqualification was unjustified and ordered the tendering authority to consider the petitioner as L1 bidder.
Fact of the Case:
The petitioner challenged their disqualification from a tender process due to failure to submit a 'No Conviction Certificate' as per a corrigendum issued by the tendering authority. Despite submitting the certificate within the extended time, the petitioner was disqualified, favoring another bidder.
Finding of the Court:
The court found the conduct of the tendering authority to be arbitrary, unreasonable, and biased, leading to the unjustified disqualification of the petitioner. The court ordered the tendering authority to consider the petitioner as L1 bidder.
Issues: The issues revolved around the introduction of a substantive term through a corrigendum, the fairness of the disqualification process, and the conduct of the tendering authority in favoring another bidder.
Ratio Decidendi: The court held that the introduction of a substantive term through a corrigendum, coupled with the arbitrary and biased conduct of the tendering authority, rendered the disqualification unjustified and subject to judicial review.
Final Decision: The court allowed the writ petition, directed the tendering authority to consider the petitioner as L1, and prohibited further work orders to the favored bidder.
JUDGMENT :
ARIF S. DOCTOR, J.
1. Rule. Rule made returnable forthwith. With the consent of the learned counsel for parties, the present Writ Petition is taken up for final hearing.
2. The Petition essentially impugns the Petitioner’s disqualification from the tender process floated by Respondent No. 2 - Malegaon Municipal Corporation for the supply of medicines, materials, laboratory chemicals and equipment’s for hospitals/clinics (“the said tender”) on the ground that the Petitioner had failed to submit a “No Conviction Certificate” in terms of a corrigendum dated 19th April, 2023 issued by Respondent No. 2.
3. Before adverting to the rival contentions, it is useful to set out the following facts, viz.
ii. It is not in dispute that (a) Respondent No. 2 thereafter on 19th April 2023 at 9.11 p.m. i.e. effectively one day prior to the submission of bids, issued a corrigendum by which Respondent No. 2 required as a mandatory eligibility criteria bidders to submit a “No Conviction Certificate” and (b) that this corrigendum was neither published/advertised nor communicated to the Petitioner but was merely uploaded on the website of Respondent No. 2.
iii. Though strictly not relevant to the present challenge, it is the Petitioner’s contention that the Petitioner was made aware of this corrigendum by one of the officers of Respondent No. 2 only on 20th April 2023 and that the said corrigendum prior to 25th April 2023 was not opening on the website of Respondent No. 2. It is the Petitioner’s contention that the said corrigendum opened for the first time only on 25th April 2023.
iv. On 26th April, 2023, three things happened (a) the Petitioner’s technical bid was opened and the Petitioner was held to be technically qualified (b) the Petitioner requested the Food and Drugs Administration, Maharashtra to issue a “No Conviction Certificate” to the Petitioner and (c) the Petitioner requested Respondent No. 2 to extend the time for submission of the “No Conviction Certificate”.
v. It is again not in dispute that thereafter by a letter dated 12th May 2023 Respondent No. 2 granted the Petitioner an extension of time till 16th May 2023 to submit the said “No Conviction Certificate” and that the Petitioner thereafter infact submitted the said “No Conviction Certificate” dated 4th May 2023 issued by the Food & Drugs Administration, Nashik Zone 3 District on 12th May, 2023 i.e. within the extended time.
vi. However, despite the above, i.e., submission of a “No Conviction Certificate” by the Petitioner within the extended time, Respondent No. 2 (a) published its scrutiny letter dated 13th July 2023 disqualifying the Petitioner on the ground that the Petitioner had not submitted “No Conviction Certificate” and (b) published its Tender Summary Report on 19th July 2023 disqualifying the Petitioner on technical grounds and accepting Respondent Nos. 3, 4 and 5 as technically qualified. Respondent No. 4 was thereafter, it appears declared as the successful bidder.
4. It is in the aforesaid factual matrix that the Petitioner has essentially impugned (i) the Scrutiny Letter dated 13th July 2023 and (ii) the Tender Summary Report dated 19th July 2023.
5. Before proceeding further, we must at this stage note that this Court had vide an order dated 25th July 2023 inter alia granted interim relief by directing that if the work order had not been granted, the same should not be issued till the next date. Thereafter after a detailed hearing on interim reliefs this Court had vide an order dated 4th November 2023 inter alia held that the conduct of Respondent No. 2 in not opening the Petitioner’s technical bid was not only truly unreasonable in the wednesbury sense but also perverse and directed Respondent No. 2 to open the technical bid of the Petitioner and
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The main legal point established in the judgment is that the conduct of the tendering authority, including the introduction of substantive terms through corrigendum and biased disqualification proces....
The court emphasized the necessity of strict compliance with tender conditions and ruled against arbitrary actions by administrative authorities.
Judicial review in public procurement is limited; courts refrain from interference unless clear evidence of arbitrariness or bad faith is established.
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