2009 Supreme(Pat) 417
PATNA HIGH COURT
Navaniti Prasad Singh, J.
Ramsarup Industrial Corporation (Unit Of Ramsarup Industries Limited)
Versus
State Of Bihar
Civil Writ Jurisdiction Case No. 2028 of 2009 2033 of 2009
Decided On : MARCH 18, 2009
Headnote:Government Contract-"Technical bid" & "financial bid"--technical bid of petitioner rejected as the bank guarantee furnished by it was drawn in favour of Registrar, Water Resources Department instead of Under Secretary (Accounts), Water Resources department-Technical bid is submitted for technical evaluation of the person tendering about his capability to perform the contract and there is no inter se competition amongst the parties-The inter party competition starts at the stage of financial bid alone and if people are eliminated at the technical bid stage itself, the inter party Competition at the financial bid stage is reduced-The whole Concept of getting into competitive bid at the financial bid would stand defeated if not reduced in efficacy, if for technical reasons, technical bids are rejected-Such elimination of competition does not inure to the benefit of the State or the public and cannot be termed to be in public interest-In the present case defect in bank guarantee was hyper technical and petitioner was wrongly excluded from consideration and was wrongly deprived of his right to compete for the tender in question-However, in CWJC No. 2028/09 Work order having been issued in favour of respondent No.7 and substantial part of it already been executed, no effective relief can be granted to the petitioner-In other writ petition, the work order not having been issued, Tender Committee directed to reevaluate the financial bid taking into account the financial bid of the petitioner as well. (Paras 4, 5, 6 and 9)
AIR 1992 SC 152; AIR 1991 SC 1579; 2003(4) PLJR 445-Referred to.
1. These two writ petitions are in relation to tenders issued by Government of Bihar in the Department of Water Resources in relation to anti erosion work. They are basically for supply of steel wires of different diameters and, hence, two separate groups in the tender. As per the notice inviting tender, tenderers had to file their bids in two sets, as is usual, first the technical bid and then the financial bid in separate sealed envelopes. The notice inviting tender was issued on 29.12.2008. Petitioner, apart from others, obtained tender papers and submitted their bid documents on or about 15.1.2009. The technical bids were opened on 16.1.2009. On opening the technical bids, no one was informed immediately about any deficiency in their technical bid. The Tender Committee then met on 29.1.2009 for evaluation of technical bids. In the meantime, it is not in dispute that as is usual, certain unanimous complaint was received against certain tenderers as to their technical capabilities. Department, vide its letter dated 20th of January 2009, sought clarifications from at least four of the tenderers and further documents in support of their technical bid. Ultimately in the 29th of January, 2009, the Tender Committee scrutinized the technical bids and apparently took a decision to reject petitioners technical bid apart from technical bid of few others. In the same meeting, it was then decided that financial bids of successful bidders would then be opened on 2nd of February, 2009. Though petitioner came to learn that his technical bid was rejected, he was not being disclosed the reason thereof. The reason for rejection of technical bid was for the first time alleged to be informed on the office notice board on the 3rd of February, 2009, petitioner came to know that both his technical bids had been rejected on the ground that though, as required by Clause-10 of the NIT, he had furnished bank guarantees of the required amount but they were drawn in favour of the Registrar, Water Resources Department, Government of Bihar, Patna instead of Under Secretary (Accounts), Water Resources Department, Government of Bihar, Patna. On coming to know this, he immediately got rectification done and submitted rectified banks guarantees on the 5th of February, 2009 but on 4th of February, 2009 itself, the Tender Committee opened the financial bids and took decision to award the contract, in both cases, to respondent No. 7. Petitioner submits that mere wrong designation mentioning of an officer of the Water Resources Department was not such an illegality so as to vitiate his technical bid itself. It was a curable defect and not an illegality. The view taken by the Tender Committee kept under wraps till financial bids were opened denying opportunity to rectify the apparent clerical mistake and denying petitioner a chance to participate in the tender. It is, thus, submitted that the decision making process stands vitiated.
2. To the contrary, Shri Tarakant Jha, learned Senior Counsel appearing for respondent No.7, in both the cases, and the learned State Counsel submit that furnishing bank guarantee was mandatory condition and the bank guarantee, as furnished by petitioner, was not adequate compliance of the said clause. Thus, it should be taken that in fact there was no bank guarantee at all which automatically leads to disqualification of the petitioner. It is these rival contentions that have to be considered in the cases at hand.
3. As pleadings are complete, with consent of parties, the writ petitions are being disposed of at this stage itself.
4. Before proceeding further, it is necessary to know as to why tenders have to be submitted bifurcated into two bids, one technical bid and the second financial bid. Technical bid is submitted for technical evaluation of the person tendering about his capability to perform the contract. At this stage, there is no inter se competition amongst the parties. It is the technical or as the case may be fi