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2025 Supreme(Bom) 930

IN THE HIGH COURT OF JUDICATURE AT BOMBAY
ALOK ARADHE, C.J., M.S. KARNIK, JJ.
M/s. Barkat Contractors Pvt. Ltd. - Petitioner 
Versus
Bhiwandi Nizampur City Municipal Corporation - Respondent
Writ Petition No. 17090 of 2024
Decided On : 30-04-2025

Advocates Appeared:
Ms. Shilpi Jain i/b. Ms. Jaya Bagwe, for the Petitioners.
Mr. Dilip Bodake, for Respondent Nos.1 to 3.
Mr. Ravi Prakash Jadhav a/w Ms. Richa Khatu, for Respondent No.4.

The court upheld the disqualification of bidders based on the interpretation of tender conditions prohibiting joint ventures, affirming the Corporation's decision as reasonable and not arbitrary.

Headnote:

(A) Municipal Corporation Act - Tendering process - Disqualification of bidders - Petitioners challenged the disqualification by the Corporation and the declaration of Respondent No.4 as the lowest bidder based on alleged forgery in documents submitted by Respondents - The Corporation's decision was based on the interpretation of tender conditions prohibiting joint ventures. (Paras 1, 9, 17, 19)

(B) Partnership Act - Definition of partnership - The court held that the interpretation of the Corporation regarding the Petitioners' bid as a joint venture was not perverse, as the entities involved did not meet the tender requirements. (Paras 10, 19)

(C) Judicial review - The court emphasized that it would not interfere with the Corporation's decision-making process unless it was arbitrary or capricious. (Paras 26, 27)

Facts of the case:
The Petitioners, two separate legal entities, submitted a joint bid for a municipal waste collection contract but were disqualified by the Corporation for violating tender conditions. The Petitioners alleged that the successful bidder submitted forged documents.

Findings of Court:
The court found the Corporation's interpretation of the tender conditions reasonable and upheld the disqualification of the Petitioners.

Issues: The main issues were whether the Petitioners constituted a joint venture and whether the Corporation's decision to disqualify them was arbitrary.

Ratio Decidendi: The court ruled that the Corporation's interpretation of the tender conditions was valid and that the Petitioners' bid was rightly disqualified.

Result: Writ Petition dismissed.

JUDGMENT :

M.S. KARNIK, J.

1. Petitioner No.1 - M/s. Barkat Contractors Pvt. Ltd. and Petitioner No.2 - M/s. Ratnaprabha Facility Services LLP challenge the decision dated 9th October 2024 of the Respondent No.1 - Bhiwandi Nizampur City Municipal Corporation ('Corporation' for short) disqualifying the Petitioners and thereby declaring Respondent Nos. 4 to 6 technically eligible. The order dated 13th October 2024 passed by the Corporation is also challenged, whereby the Respondent No.4 is declared as the lowest bidder. The work order dated 20th December 2024 in favour of Respondent No.4 is also under challenge.

2. Briefly stated the facts are that the Corporation issued e-tender on 7th September 2024 for door-to-door collection and transportation of Municipal Solid Waste up to disposal/treatment site for Zone II in the Bhiwandi Nizampur City for the period of three years. The Petitioners through their partnership firm M/s. Barkat Contractors submitted the bid on 29th September 2024 along with all the required documents, credentials and experience certificates as per the tender format. The technical bids were opened on 1st October 2024. There were five bidders including the Petitioner. The Petitioners downloaded all the documents pertaining to the other bidders/applicants which were submitted along with the tender.

3. Upon examining the bid documents, the Petitioners found that out of the total 16 mandatory qualifications, Respondent Nos.4 to 6 had failed to meet approximately 12-13 criterions. The Petitioners brought the same to the attention of the Corporation on 8th October 2024 and requested to investigate the matter and if found to be correct, disqualify Respondent Nos.4 to 6.

4. The Corporation issued email to the Petitioners dated 9th October 2024 stating that the Technical Evaluation Committee had rejected their bid. The Corporation uploaded the technical evaluation report on its website on 9th October 2024. The grievance of the Petitioners is that despite the Petitioners' objection that Respondent Nos.4 to 6 have submitted incomplete and false documents, they were declared to be technically eligible. The financial bid was opened on 9th October 2024. The Petitioners vide a letter dated 11th October 2024 wrote to the Corporation objecting to the declaration of Respondent No.4 as technically and financially eligible.

5. Ms. Shilpi Jain, learned counsel for the Petitioners submitted that :-

“i) R4 had filed the forged ITR documents as E-filing acknowledgement number on the ITR filed for AY 2023-24 and 2024-25 are same which shows a clear case of forgery.

ii) Bar code numbers on both the ITR i.e, AY 2023-24 and AY 2024-25 are same.

iii) Computation on both the ITR for the AY 2024-25 and 2023-24 were found to be same.

iv) Submitted labour License that had already expired on 30th September 2022.

v) CA certificate does not have a date and the UDIN number.

vi) Application Reference Number on GST-36 Turnover Details for quarterly returns in both the AY 2024-25 and AY 2023-24 is same.”

6. Learned counsel for the Petitioners submitted that the Respondent No.5 is not technically eligible for the following reasons :

“i) Acknowledgement No. mentioned in the ITR submitted by R5 for AY 2024-25 is exactly same as the acknowledgement number in the ITR submitted by R4 for AY 2023-24 & AY 2024-25.

ii) There are two different IT Acknowledgement number in the ITR for AY 2024-25.

iii) Turnover certificate issued by CA is also forged. It shows the turnover of Rs. 930.95 crores but on examination of the UDIN Number, the certificate shows a turnover of 822.82 crores for the year 2022-23.

iv) Submitted forged experience certificate alleged to be issued by Akola Municipal Corporation, which on telephonic verification was confirmed that no such certificate was ever issued.”

7. So far as Respondent No.6 is concerned, learned counsel for the Petitioners submitted that Respondent No.6 is not technically eligible on the following grounds:

“i) R6 had submitted the UDYAM R

























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