IN THE HIGH COURT OF JUDICATURE AT BOMBAY
Devendra Kumar Upadhyaya, CJ., Amit Borkar, J.
Adarsh Bharat Enviro Pvt. Ltd. - Appellant
Vs.
The State of Maharashtra Through Ministry of Urban Development & Ors. - Respondent
WRIT PETITION NO.10230 OF 2024
Decided On : 13-08-2024
Tender - Eligibility - Condition No. 2.3.1, 2.3.4 - The court found that Respondent No. 3 was ineligible to participate in the tender process due to debarment and failure to meet pre-qualification criteria.
Fact of the Case:
The petitioner challenged the eligibility of Respondent No. 3 in a tender process for waste management, citing debarment and failure to meet technical qualifications as per the tender conditions.
Finding of the Court:
The court concluded that Respondent No. 3 was debarred at the time of tender submission and did not meet the required pre-qualification criteria, rendering the tender committee's decision arbitrary.
Issues: Whether Respondent No. 3 was debarred on the date of submission and whether it met the pre-qualification criteria outlined in the tender conditions.
Ratio Decidendi: The court held that the eligibility of a bidder must be assessed based on the conditions set forth in the tender documents, and any failure to meet these conditions results in disqualification.
Result: The court quashed the tender committee's decision declaring Respondent No. 3 eligible and ruled in favor of the petitioner.
JUDGMENT:
Amit Borkar, J.
1. Rule. With the consent of the learned counsel of the respective parties, rule is made returnable forthwith.
2. With the consent of the respective counsel and at their request, the petition is taken up for final hearing and disposal.
3. Respondent No. 2, Ichalkaranji Municipal Corporation, issued an invitation for bids on February 16, 2024, for the execution of work related to Scientific Dumpsite Land Reclamation through Bio-mining, Resource Recovery, and the scientific disposal of rejects at the Municipal Solid Waste Dumping Ground, Ichalkaranji. Four bidders, including the petitioner and Respondent No. 3, submitted their offers. The Request for Proposal (RFP) issued by Respondent No. 2 outlined the general terms and conditions and the scope of work for the tender. The RFP stipulated that the tender process would follow a two-stage system. In the first stage, pursuant to Condition No. 5.1.3, proposals were scrutinized for responsiveness to the RFP requirements, with only responsive proposals proceeding to the second stage. The second stage, as per Condition No. 5.1.4, involved a technical evaluation based on the criteria set forth in the RFP document. It was specifically provided that the financial bids of only those bidders who met the technical qualification criteria would be opened.
4. The technical bids were opened on July 11, 2024. The tender committee scrutinized the documents submitted by all four bidders, including the petitioner's objection regarding the ineligibility of Respondent No. 3 due to an order of debarment issued by the Cuttack Municipal Corporation. The committee opined that the project management consultant was responsible for verifying the certificate provided by the petitioner, which indicated the debarment of Respondent No. 3. Consequently, the committee decided to qualify the petitioner, Respondent No. 3, and another bidder, and recommended the opening of the financial bids submitted by them. The decision of the tender committee dated July 11, 2024, declaring Respondent No. 3 eligible to participate in the tender process, is being challenged in the present writ petition.
5. In challenging the decision to declare Respondent No. 3 eligible, the learned advocate for the petitioner submitted that Respondent No. 3 failed to meet the pre-qualification criteria prescribed by Condition No. 2.3.4, which required the bidder to provide proof of RDF supply by producing a certificate from a cement factory, power plant, waste-to-energy plant, or Urban Local Body (ULB) confirmed and signed by the Head of Department (HOD) or executive engineer, for the disposal of at least 20% of the RDF quantity, which, according to the petitioner, amounts to 69,873.84 metric tons.
6. According to the petitioner, the total RDF supply based on certificates from the cement factory, power plant, and waste-to-energy plant is 55,197.32 metric tons. The petitioner relied on Clause 3.2.4 of the tender conditions, which stipulates that any entity barred or blacklisted by the Central Government, any State Government, a statutory authority, or a public sector undertaking from participating in any project, where such bar or blacklisting is in effect on the date of proposal submission, would be ineligible to submit a proposal, either independently or through an associate. The petitioner contended that the certificate relied upon by Respondent No. 3, issued by a paper mill, could not be considered for evaluating the eligibility of Respondent No. 3. The date of the proposal submission, as per the petitioner, was January 9, 2023. The communication dated July 21, 2023, issued by the Cuttack Municipal Corporation, indicated that Respondent No. 3 was debarred for a period of two years, a fact not contested by Respondent No. 3. Therefore, according to the petitioner, Respondent No. 3 was disqualified on the date of submission of the tender.
7. Conversely, it was argued on behalf of Respondent No. 3 that Respondent No. 2 had appoint
Michigan Rubber (India) Limited v. State of Karnataka & Ors.
A bidder's eligibility in a tender process is strictly governed by the conditions outlined in the tender documents, and failure to comply results in disqualification.
The decision to disqualify a bidder from a tender process does not require a reasoned order and should defer to the understanding and appreciation of the tender documents by the employer of the proje....
Disqualification of a tender bidder must adhere to principles of natural justice, but can be justified based on credible complaints regarding past performance.
Judicial review in tender matters is limited to assessing procedural fairness, not the merits of the tender conditions, which are determined by the tendering authority.
The court upheld the tendering authority's discretion in setting eligibility criteria, emphasizing limited judicial review focused on procedural fairness rather than the merits of the decision.
The main legal point established in the judgment is that the disqualification of a bidder must be justified, and an unsuccessful bidder cannot challenge the qualification of other bidders.
Disqualification from tender processes necessitates adherence to procedural fairness; blacklisting without notice is arbitrary and invalid.
The court upheld the authority's discretion in evaluating tender bids, emphasizing the need for compliance with mandatory conditions and the absence of arbitrariness in disqualification decisions.
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