IN THE HIGH COURT OF PATNA
MADHURESH PRASAD, J.
The Bihar Offset Printers Association And Others — Appellant
Versus
The State Of Bihar And Others — Respondent
Civil Writ Jurisdiction Case No 7289 of 2020
Decided on : 21-05-2021
Contract Matter – E-tender (notice Inviting Tender) assailed on the ground that same does not provide the benefits of exemption from Earnest Money Deposit (EMD), and purchase preference to small Scale Industrial units (SSIU) as contemplated under the Bihar Finance (Amendment) Rules, 2005 and the Store Purchase Preference Policy, 2002 – benefits of exemption contemplated under Rule 131B, can only be claimed of the procurement process in question is for goods and not in a process for procurement of services – therefore, the petitioners, or anyone for that matter have no right to claim the benefit of exemption from EMD or purchase preference under BFR 2005 or SPPP 2002; in the process of procurement of a service under the NIT in question – expression "store" under SPPP 2002, does not mean" service" – it is axiomatic that existence of a right is a prerequisite to the invocation of writ jurisdiction under Article 226 of the Constitution of India by any person – the petitioners have no subsisting right redressal of which may be prayed for in a writ proceeding under Article 226 of the Constitution of India – Writ petition dismissed. (Paras 53, 65, 66 & 68)
(2016)8 SCC 622, AIR 1979 SC 1628, (1994)6 SCC 651, (2004)4 SCC 19, (2005)4 SCC 435, (2016)15 SCC 272, (2017)4 SCC 269, (2017)8 SCC 282, (2004)4 SCC 19, (2012)6 SCC 464, (2017)8 SCC 216, (2018)5 SCC 462, (2019)14 SCC 81, AIR 1970 SC 1955, (1984)4 SCC 251, AIR 1996 SC 906, (2003)2 SCC 355, (2009)6 SCC 171, (2016)16 SCC 818, (2018)9 SCC 1, (2017)8 SCC 357, 1986 (Supp) SCC 301, (2018)16 SCC 368—Referred.
JUDGMENT :
1. On account of the resurgence of COVID - 19 Pandemic, matter is again being considered through Video Conferencing. Parties have made submissions at length yesterday as well as today from their residence. The Court Master and Secretary are also part of the Virtual Court Proceedings with the aid of Audio-Visual Technology.
2. The writ petition has been filed with a prayer seeking quashing of E-Tender (Notice Inviting Tender) (for brevity, NIT) Reference No 05/State Health Society, Bihar (for brevity SHSB)/IEC (printing and supply)/2020 - 2021 inviting bids from Agencies desirous of entering into rate contract for printing and supplying of various modules, registers, cards etc for the SHSB. The NIT has been assailed on the ground that the same does not provide the benefits of exemption from Earnest Money Deposit (EMD for brevity), and purchase preference to Small Scale Industrial Units (SSIU for brevity) as contemplated under the Bihar Finance (Amendment) Rules, 2005 (for brevity, BFR 2005) and the Stores Purchase Preference Policy, 2002 (for brevity, SPPP, 2002). The NIT is therefore legally unsustainable. Petitioners seek a direction to the State Health Society Bihar to follow the procedure of procurement by giving exemptions as per the said Act and Policy.
3. At the very outset, Mr. Y.V. Giri, learned senior counsel who has appeared on behalf of intervener-respondent No. 19, raises a preliminary objection that the petitioners cannot maintain the instant writ petition for the following reasons:
Petitioner No 3, has been categorized as a small manufacturing enterprise and not SSIU. Petitioner No 3 has already filed his tender document under the terms and conditions of the NIT and is, therefore, estopped from assailing the terms.
Petitioner No 4 has been classified as Micro Manufacturing Enterprise and is not an SSIU.
Petitioner No 5 has also been classified as Micro Manufacturing Enterprise and is not an SSIU.
4. He has further submitted that the writ petition has been filed after considerable delay, after the last date (22.08.2020) fixed for submission of NIT, and is barred by delay and laches.
5. In support of this submission, he has relied upon decision of Hon'ble Supreme Court of India in Central Coalfields Limited & Another -Versus- SLL - SML (Joint Venture Consortium) & Others, reported in (2016) 8 SCC 622.
SUBMISSIONS OF PETITIONERS' SENIOR COUNSEL
6. Learned senior counsel Mr. P.K. Shahi appearing for the petitioners, on the other hand has submitted that petitioner No 1 is an association of offset printers in the State of Bihar, registered under the Societies Registration Act. After the year 2005 every micro, small and medium industry has to be registered online at the Government Portal for MSME (Udyam) registration, by the Ministry of Micro, Small Medium Enterprises, Government of India. Petitioners No 2 to 5 are printers and registered SSIU. No separate registration as SSIU with the State Government is required. Based on certificates issued by the Ministry of MSME the petitioners are entitled to the benefits which they have claimed.
7. The Erstwhile Ministry of Small Scale Industries, Government of India had issued a notification, under the Micro, Small and Medium Enterprises Development Act, 2006 (MSME Act for Brevity). The same was published in the Gazette of India dated 30.09.2006 (Annexure-22). Based on quantum of investment on plant and machinery, It classified manufacturing enterprises into Micro, Small and Medium category. As per this notification a small manufacturing enterprise was one whose investment on plan
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Judicial review in tenders limited to mala fides, arbitrariness, irrationality impacting public interest; courts defer to authority's interpretation of eligibility unless perverse.
The court affirmed that stringent eligibility criteria in public tender processes cannot violate statutory relaxations for Start-ups, emphasizing limited grounds for judicial review.
Tender authorities possess the discretion to define submission requirements for bids, and courts should not intervene unless there is clear irrationality or arbitrariness in their decisions.
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....
Government procurement processes must ensure fairness and adherence to legal norms, avoiding arbitrary exclusions.
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 emphasized that the process adopted by the authorities should not be intended to favor someone, and there should be no mala fide or public interest affected for the impugned tender to be qu....
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