2006 Supreme(Pat) 680
HIGH COURT OF PATNA
Navaniti Pd. Singh, J.
M/S Vijay Raj Mewar Construction Company Private Limited - Petitioner
vs.
The State of Bihar & Ors. - Respondents
CWJC No. 4197 of 2006
Decided On : 7.8.2006
Advocate Appeared:
For the Petitioner: M/s Ranjan Kr. Jha, Mukund Singh, Amarendra Kumar Jha.
For the State G.P.-XII.
The established tender process and criteria cannot be relaxed or changed once advertised, and the selection process must be completed based on the advertised criteria.
Headnote:
Tender Process - State Obligation - The court quashed the decision of the State to cancel a tender and issue a fresh one, as it violated the established tender process and was found to be violative of Article 14 of the Constitution.
Fact of the Case:
The State canceled a tender and directed to consider a previously rejected contractor for technical and financial bids, which disrupted the established tender process.
Finding of the Court:
The court found the decision-making process to be unsustainable and violative of Article 14 of the Constitution, and consequently quashed the impugned order.
Issues: Violation of established tender process, State's obligation to follow advertised criteria, and the legality of canceling a tender and issuing a fresh one.
Ratio Decidendi: The court held that once the eligibility, conditions, and criteria for tender have been advertised and selections made, the criteria cannot be relaxed or changed, and the selection process must be completed based on the advertised criteria.
Final Decision: The court allowed the writ application, quashed the impugned order, and directed the Department to proceed as if the impugned order was never issued, thereby validating the accepted tender.
This case is an illustrative case where State, oblivious of its constitutional obligation to the citizens, proceeds in its sweet time and in its own sweet will leaving citizens to the mercy of mother nature.
2. For erecting flood embankments for protection of life and property from flood, tenders were floated. The tenders had to be filed in two separate sections. First, a technical bid after evaluation of which in respect of successful bidders, their financial bid was then to be opened and after evaluating them, the final acceptance had to be issued followed by execution of formal agreement and issuance of work ORDER :. It may be mentioned that this is a centrally sponsored scheme and the work, it goes without saying, is urgent. The State has filed counter affidavit.
3. Tenders were, accordingly, issued. Various parties filed their technical and financial bids. As required, first the technical bids were opened. It is not disputed that only two tenderers, in respect of the tender in question, qualified in the technical bid. It is not disputed that the tender of one Mother India Constructions Private Limited was found technically unfit and, as such, his technical bid was rejected as being ineligible.
4. After the technical bids had been sorted out, the financial bids were opened and ultimately, it is not disputed, that petitioner was selected for award of the contract. It is not disputed that ORDER :s were issued to the appropriate authorities to enter into formal contract with petitioner. It is at this stage suddenly a decision was taken and the ORDER :selecting the petitioner was set aside and the said private contractor, that is Mother India Constructions Private Limited, was directed to be considered for technical bid and consequently for the financial bid as well. In effect, the entire tender process, the decision making process, was turned upside down. This is what has brought the petitioner to this Court.
5. On behalf of the petitioner, it has been submitted that once when the technical bid of the said Mother India Constructions Private Limited was found to be bad and ineligible then he was disqualified from being considered in the financial bid sector.
It is submitted that apparently there is no legal and valid reason for setting aside the decision of the Tender Committee rejecting the technical bid of the said Company. The learned State Counsel has supported the action of the State with reference to the pleadings in the counter affidavit. The learned State Counsel has fairly conceded, with reference to the statement made in the counter affidavit that the Department on being represented by the said private contractor, constituted a flying squad to verify the decision of the Tender Committee in rejecting the technical bid of the private contractor. It is stated in paragraph5 sub-paragraph (vi) (at page-8 of counter affidavit) "The flying squad found the decision of the Tender Committee proper and documented on basis of norms laid down in the NIT and PWD Code". This was not enough to drop any further action because in the very next line of the said counter affidavit, it is stated thus "But the decision of the flying squad was based on technical aspects of the case, legal implications and State interest was not looked into". What is the legal implication and the State interest is not disclosed. It is only a mambo jumbo expression without any factual expression.
6. It is well settled that once notice inviting tender has been issued laying down eligibility, conditions and criteria pursuant to which various persons have acted and selections made, the criteria cannot, thereafter, be relaxed or changed. The selection process has to be completed on basis of advertised criteria. Here, in the present case, it is not disputed that there was nothing wrong, illegal or arbitrary in the decision of the Tender Committee in rejecting the technical bid of the private contractor, namely, M/s Mother India Constructions Private Limited. On r