IN THE HIGH COURT OF BOMBAY AT AURANGABAD BENCH
Mangesh S. Patil, S.G. Chapalgaonkar, JJ.
M/s B.R. Ande Construction Company - Petitioner
Versus
State of Maharashtra and Ors. - Respondents
Writ Petition No. 369 of 2023
Decided On : 20-02-2023
| Table of Content |
|---|
| 1. requirements for tender compliance (Para 1 , 2 , 3 , 4) |
| 2. disqualification based on tender criteria (Para 5 , 6 , 7) |
| 3. arguments regarding eligibility and discrimination (Para 8 , 9 , 10) |
| 4. judicial review limitations in tender matters (Para 11 , 12 , 13 , 14) |
| 5. conclusion dismissing the writ petition (Para 15 , 16) |
JUDGMENT :
S.G. Chapalgaonkar, J.
The petitioner, partnership firm approaches this Court under Article 226 of the Constitution of India with following prayers :-
B. To direct the respondent No.2 to open the financial bid of the petitioner along with other successful bidders, for e-tender B-2 notice no.LTR-2/11/2022-23 for Construction of Railway over bridge Ahmedpur Shirur (Tajband) Udgir Road, on SH 249, Km. 1/200 near Malkapur on Udgir By-pass road, Tq. Udgir, Dist. Latur, by issuing a writ of mandamus or any other direction, writ or order as the case may be;
2. The petitioner avers that the tender notice dated 20-10-2022 was issued by respondents for construction of railway over bridge, Ahmedpur-Shirur (Tajband) - Udgir Road, on SH 249, Dist. Latur with an estimated cost of Rs. 28.00 crores and 24 months period of execution of work .
3. The tender notice prescribes qualifying criteria in clause (4). The clause 4.2 provides for the information and documents to be included with the bids in section (2). The sub clause (b) and (c) states as under :-
(c) Experience in works of a similar nature and size for each of the last Seven years and details of works underway or contractually committed and clients who may be contacted for further information on those contracts;
4. The clause No. 4.4 reads as under :-
4.4 A. To qualify for award of the contract, each bidder in its name should have in the last Seven years as referred to in Appendix.
(a) Achieved a minimum annual financial turnover during any last seven years (in all classes of civil engineering, construction works only) of value not less than Rs.1078.88 lakhs in any one year. In support of this, scanned copy of annual Audit report certified by Chartered Accountant should be produced.
(b) Satisfactorily completed any civil work (from start to finish) during last seven years. It should have been commissioned and completed during last seven years i.e. 2015-2016, 2016-2017, 2017-2018, 2018-2019, 2019-2020, 2020-2021, 2021-2022 of at least:-
i. Three similar works each having minimum estimated cost of Rs.1150.80 Lakhs at price level 2022-23.
or
ii. Two similar works each having minimum estimated cost of Rs. 1438.51 Lakhs at price level 2022- 23.
iii. One similar work of value not less than Rs.2301.61 Lakhs at price level 2022-23.
(Financial turnover and cost of completed works of previous years shall be given weightage of 10% per year based on Rupee Value to bring them to 2022-23 price level.)
4. The petitioner in compliance with the aforesaid condition submitted the work completed/in hand certificate as under :-
| Sr.No. | Name of Work | Name and Address of the Organisation | Place and Country | Agreement No. | Tendered Cost | Total cost of Work Done | Date of Completion |
| 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 |
| 1 | Construction of Railway Over Bridge Across Railway Crossing on Akola Dabki Gaigaon Road Dist. Akola | Executive Engineer, P.W.D. Division Akola | Akola, Maharashtra, India | B-1/326/DL/ 2016-17 | 147885618 | 19,93,00,007.85 | 2021-22 |
| 2 | Construction of Railway Over bridge Approaches, Service Road, Diversion Road on Shirur Udgir Bidar Road SH217 at Km. 34/700 (Railway Km No.169/6-7 L.C.No.82) Tq. Udgir Dist. Latur |
|
The authority that issues a tender is best positioned to interpret its conditions, and courts should only intervene in cases of clear arbitrariness or irrationality.
Compliance with tender document requirements, including transportation experience, is crucial and cannot be overlooked based solely on lower financial bid rates.
The court ruled that tender eligibility criteria must explicitly state disqualifications, allowing joint venture experience to be considered for bidder qualifications, ensuring clarity and fairness i....
Public authorities must ensure fairness and non-arbitrariness in tender processes, adhering to established eligibility criteria.
Judicial review of tender decisions should respect the expertise of evaluation committees unless evidence of arbitrariness or unreasonableness is demonstrated.
Experience of a firm is not in its entirety attributable to each individual partner, but attributable only to the collective effort of all partners concerned.
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.
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