IN THE HIGH COURT OF BOMBAY
Vibha Kankanwadi, S.G.Chapalgaonkar, JJ.
Jawahar Speakers And Mandap Contractor - Appellant
Versus
District Collector - Respondent
Writ Petition No. 3114 of 2024
Decided On : 03-04-2024
TENDER PROCESS - CHALLENGE TO TENDER REJECTION - Article 226 of the Constitution of India - The court interpreted Article 226 as providing the jurisdiction to review administrative actions, emphasizing the need for fair interpretation of tender conditions. The court found that the rejection of the petitioner's bid was based on a misinterpretation of the tender conditions, particularly Condition No.13, which did not explicitly limit eligibility to electrical work. The court concluded that the tendering authority acted irrationally and unreasonably, warranting judicial intervention.
Fact of the Case:
The petitioner challenged the rejection of their financial bid in a tender process for supplying electrical appliances for elections, arguing that they were unfairly declared ineligible despite previously being deemed eligible based on the same documentation.
Finding of the Court:
The court found that the rejection of the petitioner's bid was based on a misinterpretation of the tender conditions, particularly Condition No.13, which did not specifically require the work to be limited to electrical supplies. The court ruled that the tendering authority's actions were arbitrary and lacked a reasonable basis.
Issues: Whether the rejection of the petitioner's bid was justified based on the interpretation of the tender conditions, and whether the court has the jurisdiction to intervene in the tendering process under Article 226.
Ratio Decidendi: The court held that the interpretation of tender conditions must be clear and unambiguous, and that the tendering authority cannot impose additional requirements not specified in the tender document. The court emphasized the need for rationality and fairness in administrative actions.
Final Decision: The court allowed the writ petition, quashed the order rejecting the petitioner's bid, and directed the authorities to open the financial bid and reconsider the issuance of the work order within two weeks.
JUDGMENT/ORDER
VIBHA KANKANWADI, J. - Rule. Rule made returnable forthwith. Heard learned counsel appearing for the respective parties finally, by consent.
2. By present Writ Petition, the petitioner seeks to invoke the constitutional powers of this Court under Article 226 of the Constitution of India to challenge the order dtd. 28/2/2024 passed by respondent No.1 refusing to open the financial bid of the petitioner and seeks directions to respondent No.1 to issue work order in favour of the petitioner and further restraining the respondents from taking further steps including publication of fresh tender pursuant to the impugned order dtd. 28/2/2024.
3. It is the case of the petitioner that respondent No.1 floated tender bearing No. 10 of 2023 on 6/12/2023 for supply of electrical appliances, sound systems and other necessary items on rent basis for conducting the ensuing elections of Lok Sabha / Vidhan Sabha General Elections 2024. The tender was published on 7/12/2023 and last date for submission of tender was 22/12/2023 up-to 6.00 p.m. The petitioner participated in the said tender process and paid requisite EMD amount. The tenders submitted by the petitioner and other tenderers were opened on 26/12/2023. In all seven tenderers had participated at that time. Out of them six were declared ineligible and the petitioner was only declared as eligible. As petitioner was the single eligible tenderer, the said tender notice was cancelled by respondent No.1 and a fresh second tender notice was published on 23/1/2024. The last date for submission of said tender was 30/1/2024 and the technical envelope was to be opened on 1/2/2024. The petitioner again participated in the said tender process, uploaded the document and paid the requisite EMD amount. In all four tenderers had participated this time and respondent No.1 opened the technical envelope on 1/2/2024 and declared all the tenderers including the petitioner, as ineligible. The petitioner contends that though he had submitted the requisite experience certificate to the tune of 60% of the tender document as per Condition No.13 of the tender notice, yet the petitioner has been declared as ineligible. In the earlier round, the petitioner was held to be eligible on the basis of the same document. This shows mala fides on the part of the respondent authorities.
4. The petitioner has come with the case that since all the four tenderers were declared as ineligible, respondent No.1 again issued fresh tender on 20/2/2024 i.e. third time. The tender was published on 21/2/2024 and last date for submission of tender was 27/2/2024. Technical envelope was to be opened on 28/2/2024. The petitioner had again participated in the process by submitting documents as well as paying requisite tender fees. Now, in all three tenderers had participated including the petitioner. Again respondent No.1 had declared all the tenderers as ineligible. Now the ground of rejection of the petitioner's bid was that he has not submitted the requisite certificate issued by the competent authority indicating 60% of completion of work during any one year election of Lok Sabha / Vidhan Sabha of last preceding 7 years. It was stated by the authorities that the petitioner has uploaded the certificate dtd. 10/1/2024 issued by the Deputy Returning Officer, Solapur, which is of supply of Mandap (tent) and furniture articles and not of the electrical work done by the petitioner. The respondent authorities could not have rejected the bid presented by the petitioner i.e. especially the certificate taking into consideration Condition No.13 of the tender document. The petitioner has contended that the respondent authorities have acted deliberately and rejected his technical bid just to accommodate the contractor of their choice and therefore the petitioner has filed the present Writ Petition with the prayers stated herein above.
5. Learned Advocate Mr. Bagul appearing for the petitioner had taken us through the documents produced


AI
Tender - Tender conditions are required to be read as provided in the tender document and if there are two views or construction possible than the view of the authority interpreting the tender docume....
The court upheld the authority's discretion in setting eligibility criteria for tenders, emphasizing that judicial review is limited to cases of arbitrariness or unreasonableness.
Public authorities must ensure fairness and non-arbitrariness in tender processes, adhering to established eligibility criteria.
The main legal point established in the judgment is the limited scope of judicial review in tender conditions, emphasizing the authority of the tendering entity to interpret and appreciate its requir....
Judicial review of tendering decisions is limited to assessing legality, with courts refraining from substituting the tender authority's decisions unless in cases of illegality or manifest arbitrarin....
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