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2017 Supreme(Cal) 304

IN THE HIGH COURT OF JUDICATURE AT CALCUTTA
NISHITA MHATRE, TAPABRATA CHAKRABORTY, JJ.
Tirupati Agro Seed Distributors Pvt. Ltd. & Another - Appellants
Versus
The State of West Bengal & Others - Respondents
A.S.T. No. 126 of 2017 with A.S.T.A No. 28 of 2017 (Appellate Side)
Decided On : 14-07-2017

Advocates Appeared:
For the Appellants :Shakti Nath Mukherjee, Sr. Advocate, Amales Ray, Suman Schanabis, Mousumi Bhowal, Advocates.
For the Respondents:Abhratosh Mazumder, Santanu Maitra, Lal Mohan Basu, Kalyan Bandopadhyay, Pramiti Bandopadhyay, Arka Kumar Nag, Advocates.

The main legal principle established in the judgment is the requirement for strict adherence to the eligibility criteria outlined in a tender document, and the clarification that 'similar kind' does not mean 'identical' when interpreting such criteria.

Headnote:

Tender Document - Interpretation - RTE food packets - Clause 4, Clause 6(g) - The court discussed the interpretation of the tender document and emphasized that the eligibility criteria must be strictly adhered to, and no new conditions can be introduced at the whim of the State. The court also clarified the meaning of 'similar kind' and 'same type' of RTE food, highlighting that 'similar' does not mean 'identical'. The rejection of the technical bid was deemed erroneous, and the appellant's bid was ordered to be considered.

Fact of the Case:

The dispute revolved around the interpretation of a tender document to determine whether words could be added to the document at a later stage, after bids were received. The appellant's bid for supplying RTE food packets was rejected due to lack of specific experience in supplying to the Government, leading to a legal challenge.

Finding of the Court:

The court found that the rejection of the appellant's bid was erroneous as the tender document did not explicitly require experience in supplying to the Government. The court emphasized strict adherence to eligibility criteria and clarified the meaning of 'similar kind' and 'same type' of RTE food, ultimately ordering the appellant's bid to be considered.

Issues: The main issue was the interpretation of the tender document and the eligibility criteria for bidding on the supply of RTE food packets.

Ratio Decidendi: The court's decision was based on the strict interpretation of the tender document's eligibility criteria, emphasizing that no new conditions can be introduced arbitrarily. The court also clarified the meaning of 'similar kind' and 'same type' of RTE food, highlighting that 'similar' does not mean 'identical'.

Final Decision: The court quashed and set aside the impugned judgment, allowing the appeal and ordering the consideration of the appellant's bid. The application for stay was disposed of as infructuous, and no costs were awarded.

JUDGMENT :

Nishita Mhatre, J.

1. The dispute in the present appeal is whether words can be added to the tender document at a later stage, after the bids are received, while interpreting the document.

2. The facts are within a narrow compass. The Additional District Magistrate (G), North 24 Parganas floated an e-tender on 18th April, 2017 inviting bids from “Government/Undertaking/Corporations/Co-operative Societies/SHG/Clusters/Federations/Food Production Units/NGOs for preparing and supplying ready to eat (RTE) food in powdered form and consisting of ingredients mentioned in Clause 1 of the tender document. The supply of such RTE food was for the consumption of ICDS beneficiaries, that is, children of the age of six months to six years as morning snacks in Anganwadi Centres for a period of one year. The ingredients of the RTE food packets were specified as Bengal Grams (whole roasted) and oats (whole roasted) in a stipulated proportion, besides sugar to be supplied in “specific packets”. Under Clause 4 of this e-tender notice a tenderer having at least one year’s experience in supply of similar kind of RTE food with an annual turnover of more than one crore was eligible to participate in the process. For self-help groups (SHG) clusters or federations having the infrastructure of the capability of production of the desired food, the pre-requisite of experience could be relaxed subject to the verification and satisfaction of the district authority. Under Clause 6 of the tender document, amongst the various documents which the tenderer was expected to furnish, were his credentials which were expected to include work orders in the last one year for the same type of supply and payment certificates. Clause 12 stipulated that a sealed packet, containing 100gms of the RTE food mix and sugar, along with food testing report from a Government approved laboratory was to be submitted to the District Authority by the tenderers.

3. The bids were expected to be submitted by 12th May, 2017. The technical bid was to be opened on 15th May, 2017 and the financial bid on 23rd May, 2017.

4. The appellant No. 1 bid for the tender as it fulfilled all the requisite criteria in the e-tender notice. The technical bid of appellant No.1 was disallowed. It appears that the appellant bid was rejected because the Appellant No. 1 did not have the experience of supplying RTE food packets of the “same type” or “similar kind” to the Government. A writ petition was filed in this Court being W.P. 14863(w) of 2017 challenging this rejection. The tender process was stayed by the Learned Single Judge till 12th June, 2017 by an interim order. After affidavits were filed by the respective parties the writ petition was heard and by a judgment dated 19th June, 2017, the writ petition was dismissed.

5. Aggrieved by the order of the learned Single Judge dismissing the writ petition, the appellants have preferred the present appeal.

6. Mr. Shaktinath Mukherjee, the learned Senior Counsel appearing for the appellants submitted that a tender document must be strictly construed. He submitted that when there is no specific criterion in the e-tender notice that the tenderer must have experience of supplying RTE packets to Government or Government organisations, the State cannot read these words into the tender document. He argued that when the document is not capable of two interpretations, the State cannot alter the rules of the game after the tender document had been issued only in order to reject the technical bid of the appellants. He further submitted that even in case of a tender issued by the State acting in its executive capacity, it is incumbent on the State to comply with the mandate of Article 14 of the Constitution of India. He has drawn our attention to the judgment in the case of M/s. Radhakrishna Agarwal and others Vs. State of Bihar and others reported in 1977 (3) SCC 457 and Monarch Infrastructure Private Limited Vs. Commissioner, Ulhasnagar Municipal Corporation and












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