IN THE HIGH COURT OF JUDICATURE AT BOMBAY
Alok Aradhe, CJ., M.S. Karnik, J.
Contract for Emergency Medical Services - Petitioner
Versus
The State of Maharashtra and Ors. - Respondents
Public Interest Litigation No. 62 of 2024, Interim Application No. 12541 of 2024, Interim Application No. 12592 of 2024, Writ Petition No. 13113 of 2024
Decided On : 08-04-2025
(A) Public Interest Litigation - Tender process - Maharashtra Emergency Medical Services (MEMS) Project 2024 - Challenge to tender and Government Resolution dated 15th March 2024 - Petition dismissed as the tender process was fair, transparent, and reasonable, with no evidence of arbitrariness or mala fide conduct. (Paras 2, 22, 24)
(B) Judicial Review - Scope of judicial review in tender matters is limited to preventing arbitrariness and ensuring transparency - Courts cannot interfere with decisions made by competent authorities unless there is illegality or irrationality. (Paras 16, 18)
Facts of the case:
The PIL challenged the tender process for MEMS Project 2024, initiated by the Maharashtra Government, which involved multiple expert committees and a transparent bidding process. The petitioner was found to have questionable motives and lacked standing.
Findings of Court:
The tender process was conducted fairly, with no challenges from other bidders, and the need for ambulances was justified based on population norms.
Issues: Whether the tender process was arbitrary or lacked transparency, and the legitimacy of the petitioner's standing.
Ratio Decidendi: The court emphasized minimal interference in public interest projects and upheld the tender process as fair and reasonable.
Result: PIL dismissed; writ petition disposed of.
JUDGMENT :
Alok Aradhe, CJ.
Rule. Rule is made returnable forthwith. By consent of the learned counsel for the parties, heard finally.
(A) CHALLENGE:
2. The subject matter of PIL is a tender viz. tender bearing No.Ref No.E-08/MEMS/23-24 dated 4th January 2024 issued by the Commissioner, Health Service and Mission Director, National Health Mission, Mumbai for design, build, finance, operate and transfer (PPP-DBFOT Hybrid Model) Maharashtra Emergency Medical Services (MEMS) Project 2024 (subject tender). The challenge in this petition is to the subject tender as well as the Government Resolution dated 15th March 2024 issued by the Secretary, Public Health Department, State of Maharashtra. A direction is sought to conduct a full-fledged inquiry, with regard to the illegal transactions leading to the subject tender as well as the subsequent transactions which led to Government Resolution dated 15th March 2024. In addition, a direction is also sought to issue guidelines for award of MEMS project and to lay down standard guidelines pertaining to supply of manpower. The successful tenderer viz. the consortium has filed writ petition No.13113 of 2024 seeking a direction to respondent Nos.1 to 4 to forthwith execute the concessionaire agreement with the petitioner as per the terms of the Letter of Allotment dated 15th March 2024. The PIL and the writ petition arise out of the same tender, therefore, same were heard analogously and are being decided by this common order. In order to appreciate the grievance of the petitioners, relevant facts need mention which are stated infra.
(B) FACTS:
3. The Government of Maharashtra, in the year 2011, with intent to launch Maharashtra Emergency Medical Services (MEMS) with a fleet of 937 life support ambulances (Advance Life Support-235 & Basic Life Support-702) on Turnkey basis, floated a tender to develop and operate Emergency Response Service/Ambulance Service for providing an emergency response ambulance service. BVG India Ltd. was awarded the contract for a period from 1st February 2014 to 31st January 2019. On expiry of the period of contract, the same was extended from time to time for a period from 1st February 2019 to 31st January 2024.
4. The Commissioner, Health Services to the Public Health Department, on 3rd April 2023, sent a proposal to the Public Health Department seeking approval for procurement of different types of ambulances along with medical equipments and information technological hardware/software with a view to upgrade the already existing infrastructure. The State of Maharashtra is required to follow the guidelines issued by the National Health Mission Conditionalities Framework 2022-24. Taking into consideration the said norms, the State of Maharashtra was in need of total 1529 ambulances. An expert committee for Bio-Medical Equipment Specifications, consisting of Director, Health Services as Chairman with members from Professor and HOD Surgery Department and HOD Medicine Department from Sir JJ Hospital, Mumbai, Joint Director Hospital Section, Project Director Emergency medical services, Joint Director Procurement, Civil Surgeon, Thane and Orthopedic Surgeon from Thane Civil Hospital was constituted. The expert committee, comprising of Deputy Director, Transport, Members from Central Institute of Road Transport (CIRT), Civil Surgeon, District Hospital-Pune, District Health Officer-Pune, Deputy Director Automobile Research and Association of India (ARAI), Regional Transport Office, Pune (RTO), Professor of Mechanical Engineering from (College of Engineering, Pune) Marine Engineer and main surveyor Maharashtra Maritime Board Mumbai was formed and the said committee laid specifications of Type C Basic Life Support (BLS) Ambulances, Two-Wheeler Scooters which need to be upgraded and procured for new MEMS tender. Another expert committee of Director of Health Services, Mumbai as Chairman with members from Under Secretary Department of Information and Technology, Head of Department
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Judicial review of tender processes is limited to preventing arbitrariness and ensuring transparency, with minimal interference in public interest projects.
Judicial review of tender processes is limited to preventing arbitrariness and ensuring transparency, not to reassess the soundness of administrative decisions.
Judicial review in public procurement is limited; courts refrain from interference unless clear evidence of arbitrariness or bad faith is established.
The main legal point established in the judgment is the need for free play in the joints by the authorities and the interest of public service. The court emphasized the importance of minimal interfer....
Judicial review of tender conditions is limited; courts should not interfere unless actions are arbitrary, discriminatory, or mala fide, ensuring public interest is prioritized.
The court upheld that 100% reservation for MSEs in public procurement is valid under the MSE Policy, rejecting claims of arbitrariness towards tender selection processes.
Point of Law : Court would not sit in the arm chair of experts or the Tender Scrutiny Committee, which has scrutinized and found the 3rd respondent to be responsive and had to be awarded the contract....
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