Back
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
DEVENDRA KUMAR UPADHYAYA, CJ., AMIT BORKAR, J.
Indo Allied Protein Foods Pvt. Ltd. - Petitioner
Versus
The State of Maharashtra, through Food, Civil Suppliers and Consumer Protection Department - Respondent
Writ Petition No.10371 Of 2024 With Writ Petition (ST.) No.21115 Of 2024 With Writ Petition (ST) No.21119 Of 2024
Decided On : 05-08-2024
| Table of Content |
|---|
| 1. challenge to tender conditions under article 226 (Para 1 , 2 , 3) |
| 2. challenge to tender condition based on experience requirement. (Para 4) |
| 3. details of the rfp requirements and criteria (Para 5 , 6 , 8 , 10) |
| 4. petitioners argue condition pq5 is arbitrary (Para 11 , 12 , 14 , 16) |
| 5. focus on article 14 and irrationality in conditions (Para 13 , 15 , 17 , 18) |
| 6. state defends condition pq5 regarding logistics (Para 22 , 23 , 24) |
| 7. judicial review standards in tender matters (Para 25 , 26 , 28) |
| 8. criteria for arbitrariness in public contract decisions. (Para 29) |
| 9. court's restraint in interference in administrative decisions. (Para 30) |
| 10. public interest and urgency in tender process (Para 35 , 36) |
| 11. writ petitions dismissed with no further orders (Para 40 , 41 , 42) |
JUDGMENT :
(Devendra Kumar Upadhyaya, CJ.) :
1. Heard learned counsel representing the respective parties.
(A) CHALLENGE:
2. Challenge in this batch of petitions instituted under Article 226 of the Constitution of India has been made to a tender condition described in Clause 4 (PQ5) of the Request for Proposal (hereinafter referred to as the RFP) floated on 18th July 2024 by the Department of Food and Civil Supply and Consumer Protection of the Government of Maharashtra for supply of food kits (Anandacha Shidha) for Gauri Ganpati festival in the Financial Year 2024-2025.
3. The impugned condition in the RFP is as follows:
4. Qualification Criteria
The bidder must meet the following pre-qualification requirements to become eligible for the commercial evaluation.
| # | Basic Requirement | Eligibility Criteria | Documents to be submitted |
| PQ5 | Other Experience | The experience of loading, unloading or handling of food grains, food items etc. to be provided by bidder. Hence, bidder should have experience of providing at least 300 labourers in 70 multiple locations in Government and Semi-Government establishment within Maharashtra in single work order completed during last 3 years (upto the last date of submission of tender). The value of such work shall not be less than Rs.25 crores. | Bidder shall submit the following documents – 1. Relevant Work Orders or Contract agreements of Award of Contract or LoI 2. Experience or Completion certificates should be submitted clearly stating the scope of work performed. |
4. The impugned condition is a pre-qualification criterion which requires the tenderers to have experience of providing at least 300 labourers in 70 multiple locations in Government and semi-Government establishments within the State in a single work order which ought to have been completed during the last three years. It further stipulates that the value of such work shall not be less than Rs. 25 Crores.
(B) FACTS:
5. The facts which are relevant for proper appreciation of the issues and controversies involved in this batch of writ petitions need to be noted, which are as under:
6. An RFP was issued by the State Government on 18th July 2024 for supply of food kits which are to be distributed during Gauri Ganpati festival commencing from 7th September 2024. The supplier is required to provide food kits containing (i) 1 kg pack of sugar, (ii) 1 kg pack of rawa, (iii) 1 kg pack of chana dal, (iv) 1 litre pouch of edible soyabean oil with 1 polypropylene bag containing these items. The food kits are to be supplied during the festival at various delivery points across all the districts in the State. According to RFP, the selected supplier will be responsible for packaging, transportation and deliver of these food kits to different locations to be specified by the Department.
7. Clause 4 of the RFP gives in detail the pre-qualification criteria which have been summarized in a chart which includes the impugned criterion viz. criterion No.PQ5. The Instructions to the Bidders contained in the RFP provide that the bidding process will be on-line in two steps and the bid will comprise of two envel
Court upheld tender criteria requiring specific experience, emphasizing public interest and the rationality of conditions set by the state authority.
The court affirmed that the interpretation of tender conditions by the authority should be respected unless proven arbitrary or irrational, reinforcing the limited scope of judicial review in tender ....
Judicial review of tender conditions is limited; courts should not interfere unless actions are arbitrary, discriminatory, or mala fide, ensuring public interest is prioritized.
Tender conditions upheld as reasonable for bidder integrity, safety and compliance; judicial review in contracts limited to arbitrariness, mala fides or public interest, with deference to administrat....
The authority of the tendering body to determine the terms and conditions of the tender, the limited scope of judicial review in tender matters, and the principle of judicial restraint in administrat....
Point of law: powers of judicial review are limited and while exercising such power the Court has to see whether the process adopted or decision made by the authority is malafideor is intended to fav....
Judicial review of tender conditions is restricted to cases of arbitrariness or unreasonableness, reinforcing that the authority determining eligibility criteria has the discretion and expertise in c....
Judicial review in tenders limited to mala fides, arbitrariness, irrationality impacting public interest; courts defer to authority's interpretation of eligibility unless perverse.
The court affirmed that stringent eligibility criteria in public tender processes cannot violate statutory relaxations for Start-ups, emphasizing limited grounds for judicial review.
An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers
Please visit our Training & Support
Center or Contact Us for assistance
Scan Me!
India’s Legal research and Law Firm App, Download now!
For Daily Legal Updates, Join us on :
Back to top
