The court affirmed that a bidder's prior blacklisting by a Government entity justifies the rejection of its tender bid, emphasizing adherence to eligibility criteria in tender documents.

JUDGMENT

(PER : CHIEF JUSTICE)

Rule. Rule is made returnable forthwith. By consent of the learned counsel for the parties, heard finally.

2. The Karam Chand Thapar & Bros. (Coal Sales) Ltd. (petitioner) is a company, engaged in the business of liaisoning, movement, handling and delivery of raw coal from Coalfields to Thermal Power stations by by rail as well as rail-sea route. Mr. Sampat Shete is the Director of the petitioner.

(A) CHALLENGE:

3. In this petition, the bid of the petitioner has been rejected by the Chief Engineer (Fuel Management) MAHAGENCO (Chief Engineer). The petitioners have also assailed the validity of e- mail dated 17^th May 2024 by which the Chief Engineer issued a notice for forfeiture of EMD amount of the petitioner. In order to appreciate the grievance of the petitioners, relevant facts need mention, which are stated infra.

(B) FACTS:

4. The Bokaro Power Supply Company (P) Ltd. (BPSCPL), on 22^nd October 2022 issued a Notice Inviting Tender for the work of linkage materialisation and shortage minimization for Coal Supply from Central Coalfields Ltd. (CCL) to BPSCPL. The estimated value of the contract was Rs.37,58,841 (excluding GST). On 14^th November 2022, petitioner submitted its bid for an amount of Rs.21,00,00,000/- (Twenty-one crores only) and was informed by an email dated 11^th May 2023 that the bid submitted by the petitioner is accepted and the reverse auction would be held on 12^th May 2023. The petitioner, on 12^th May 2023 logged into the portal to participate in the reverse auction process and learnt that start price of the auction was a meagre sum of INR 21/- for the entire tendered quantity. The petitioner, thereupon immediately submitted a representation to BPSCPL to annul the reverse auction process. However, the BPSCPL continued with the auction process in which no bidder participated.

5. The BPSCPL, on 14^th July 2023 debarred the petitioner from participating in any auction of tender for a period of one year. The petitioner, thereupon on 31^st July 2023 filed a writ petition No.18476 of 2023 before the Calcutta High court against the order dated 14^th July 2023.

6. The Maharashtra State Power Generation Company Limited (MAHAGENCO) on 10^th November 2023 commenced sale of e- tender document for appointment of Supervision, Monitoring & Co-ordination (SMC) agency for the work of supervision of coal rakes movements, coal quantity and quality monitoring, loading of quality coal and movement of sized coal for various TPS of MAHAGENCO from Western Coalfields Ltd. The period of contract was one year with provision for extension of six months, subject to performance. The petitioner, on 22^nd November 2023 made payment of Earnest Money Deposit (EMD) of Rs.5,00,000/- (Rs. Five lac) in favour of MAHAGENCO and on 22^nd December 2023 the petitioner submitted its bid in response to the aforesaid e- tender. However, MAHAGENCO, on 23^rd January 2024 rejected the bid of the petitioner and on 31^st January 2024 accepted the bids of respondent Sendoz Commercials Private Limited and Godavari Commodities Limited and issued a letter of award in their favour. In the meantime, the petitioner submitted representation on 30^th January 2024. The MAHAGENCO, vide response dated 9^th February 2024, informed the petitioner that the petitioner was debarred/blacklisted by BPSCPL for a period of one year from 14^th July 2023 and therefore, the bid of the petitioner was rejected. The petitioner, thereupon, submitted another communication dated 10^th February 2024 to MAHAGENCO stating that the petitioner has not violated any terms of the tender. The learned Single Judge of the Calcutta High Court, by an ad-interim order dated 19^th February 2024 stayed the order dated 14^th July 2023 of debarment / blacklisting the petitioner till 31^st March 2024 or until further order, whichever is earlier.

7. The MAHAGENCO, on 21^st March 2024 issued work order in favour of Sendoz Commercials Private Limited and Godavari Commodities Limited. The learned Single