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2023 Supreme(Bom) 2080

IN THE HIGH COURT OF BOMBAY
Devendra Kumar Upadhyaya, A.S.Doctor, JJ.
Suraj Enterprises - Appellant
Versus
Nashik Municipal Corporation - Respondent
Writ Petition No. 5511 of 2023
Decided On : 03-11-2023

Advocates appeared:
Mihir Desai, Advocate, Sangram Chinnappa, Advocate, Bhoomika Vyas, Advocate, M.L.Patil, Advocate, Shridhar A.Patil, Advocate, R.S.Kohli, Advocate, Nikita K.Dharamshi, Advocate, C.K.Legal, Advocate

The court emphasized the importance of fair and transparent decision-making in tender evaluations, asserting judicial review is warranted when actions of administrative bodies exhibit arbitrariness by disregarding valid evidence. Additionally, tender qualifications must be strictly adhered to.

Headnote:(A) Constitution of India - Article 226 - Writ of certiorari - Tender qualification - Challenge to the declaration of qualification of a competing bidder, alleged non-compliance with required turnover qualifications - Court found the decision-making process flawed as compelling evidence from the Tender Committee was ignored. (Paras 2, 24, 45)

(B) Administrative law - Tender evaluation - The scope of judicial review in tender matters remains limited but can be invoked if actions of the administrative authority demonstrate arbitrariness or violate principles of fairness and transparency. (Paras 24, 27)

Facts of the case:
The petitioner claimed that a competing bidder, which was declared technically qualified, failed to meet financial criteria established in the tender, leading to a legal challenge against the Nashik Municipal Corporation's decision. The petitioner alleged wrongful disqualification due to minor document deficiencies. (Paras 4, 6)

Findings of Court:
The court ruled that the decision to declare the competing bidder technically qualified was based on an unfair evaluation process, emphasizing the principle of ensuring proper compliance with tender conditions and fairness in administrative actions. (Paras 45, 46)

Issues: The key issues were the purported non-compliance of the winning bidder with tender conditions and the legality of the declaration of bidder eligibility in light of the established tender requirements. (Paras 23, 42)

Ratio Decidendi: The court held that the evaluation process lacked fair proceedings as crucial recommendations from the Tender Committee regarding eligibility were disregarded, establishing a strong premise for judicial intervention. (Paras 45, 46)

Result: Writ Petition allowed; decision declaring the competing bidder qualified quashed, and a directive to reissue the tender was issued. (Paras 45, 46)

Table of Content
1. writ petition against tender qualification process. (Para 1 , 2 , 3)
2. petitioner challenges qualifications of respondent no.2. (Para 4 , 5 , 6 , 7 , 8)
3. respondent contends fairness in evaluation. (Para 12 , 13 , 14 , 15 , 16)
4. respondent defended evaluation criteria and the decision-making process. (Para 18)
5. judicial review in tender cases requires just evaluation. (Para 23 , 24 , 25 , 26)
6. court underscored the need for fair evaluation standards in tender decisions. (Para 29)
7. court quashes the decision and orders retendering. (Para 44 , 45 , 46 , 47 , 48)

JUDGMENT/ORDER

1. Heard Mr. Mihir Desai, learned Senior Advocate representing the Petitioner, Mr. M.L. Patil representing Respondent No.1 and Mr. R. S. Kohli appearing on behalf of Respondent No.2. CHALLENGE:

2. The Petitioner which is a proprietary firm, has invoked our jurisdiction under Article 226 of the Constitution of India with a prayer to issue writ of certiorari or any other appropriate writ to quash and set aside the order dtd. 7/2/2023 to the extent it holds that Respondent No.2 - M/s. S and R Pest Control Services as qualified in the technical bid submitted for award of Tender No.2 pursuant to e-tender notice No.3/2022 floated by Respondent No.1 - Nashik Municipal Corporation for executing the work related to daily spraying and fogging activity for control of Vector Borne Diseases under the Urban Malaria Scheme and to supply man power, machinery and equipments in Nashik Municipal Corporation.

3. The Petitioner has also prayed that an appropriate direction be issued to Respondent No.1 to issue fresh tender for executing the said works. CASE SET-UP BY THE PETITIONER:

4. It is the case of the Petitioner that Respondent No.2 had submitted a certificate from a Chartered Accountant certifying that its total turn-over in last three years (2018-19, 2019-20 and 2020-21) is more than Rs.4.50 Crores on account of execution of work carried out relating to spraying and fogging, though on inquiries it was revealed that Respondent No.2 had not carried out spraying and fogging work in the relevant period worth more than Rs.4.50 Crores and that the certificate submitted for the said years by Respondent No.2 was incorrect.

5. It is also the case of the Petitioner that Respondent No.1 vide its letter dtd. 3/11/2023 required Respondent No.2 to submit work orders/documents to establish that it had actually had turn-over of Rs.4.50 Crores for the relevant period and Respondent No.2 in its reply dtd. 7/11/2022 though submitted certain documents, however, the said documents reveal that the value of the work order was Rs.62, 29, 927.00. It has further been submitted by the learned Senior Advocate for the Petitioner that the documents submitted by Respondent No.2 vide its reply dtd. 7/11/2022 reveal that the most of the work orders were in respect of rodent, termite and cockroach control and not mosquito control or spraying and fogging.

6. In the background of the aforesaid facts it has been stated by the learned Senior Advocate for the Petitioner that tender condition No.6, which required the tenderer to furnish a Chartered Accountant certificate evidencing that bidder's total turn-over due to spraying and fogging activity for last three years should be more than Rs.4.50 crores, was not fulfilled, however, Respondent No.1 declared Respondent No.2 to have technically qualified which is completely illegal, unreasonable and hence the decision of Respondent No.1 declaring Respondent No.2 to have technically qualified is liable to be set aside.

7. Further submission on behalf of the Petitioner advanced before us is that in fact the Tender Committee, in its meeting held on 13/12/2022 clearly found Respondent No.2 to be ineligible for not having complied with Tender Condition No.6, however, the Additional Commissioner, Nashik Municipal Corporation, relying on the Certificate from another Chartered Accountant held Respondent No.2 to be eligible. In his submission, learn

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