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2021 Supreme(Cal) 197

IN THE HIGH COURT OF CALCUTTA
Sabyasachi Bhattacharyya, J.
M/s. Srishaila Constructions Pvt. Ltd. - Appellant
Versus
Union Of India & Ors. - Respondents
W.P.A. No. 6334 of 2020; C.A.N. No. 1 of 2020; Old No: C A N No. 4877 of 2020
Decided On : 02-02-2021

Advocates Appeared:
Anjili Nag, Advocate, Arul Prasanth, Advocate, V.D. Sivabalan, Advocate

The main legal point established in the judgment is that the tendering authority must consider all valid and eligible bids, and challenges to the tender process should not be mala fide or against the spirit of fair competition.

Headnote:

Tender - Eligibility - Sorath Builders vs. Shreejikrupa Buildcon Limited and another, (2009) 11 SCC 9 - The court discussed the eligibility of a bidder in a tender process and emphasized the importance of adhering to the terms and conditions of the tender strictly. It held that the tendering authority must declare all valid and eligible bids for consideration in the tender process. The petitioner's challenge to the acceptance of the private respondent's bid was deemed mala fide and against the spirit of fair competition.

Fact of the Case:

The petitioner challenged the acceptance of the private respondent as an eligible bidder in the second tender for the construction of a jetty, arguing that the private respondent was ineligible in the first tender and the second tender was issued to include them purposefully.

Finding of the Court:

The court found that the private respondent's ineligibility in the first tender was due to no fault of their own, and the petitioner, having participated in the second tender, was barred by waiver and acquiescence from challenging it. The court dismissed the petition, deeming the challenge mala fide and designed to eliminate fair competition.

Issues: The issues revolved around the eligibility of the private respondent in the second tender, the cancellation of the first tender, and the petitioner's challenge to the tender process.

Ratio Decidendi: The court held that the tendering authority must accept all valid and eligible bids for consideration in the tender process, and the petitioner's challenge was against the spirit of fair competition.

Final Decision: The petition was dismissed with costs of Rs.20,000 to be paid by the petitioner to the private respondent within a week from the date of the order.

JUDGMENT

Sabyasachi Bhattacharyya, J. - Ia No: CAN 1 of 2020 (Old No: CAN 4887 of 2020) is disposed of in view of the urgency involved and the matter is taken up for hearing.

2. At the outset, it may be recorded that, in compliance with this court's order dated January 20, 2021, a report was given by the concerned Section on January 29, 2021 stating that no affidavit-in-opposition and reply appears to have been filed by the advocates for the parties. However, subsequently it was detected, upon consultation with the Registrar of the Port Blair Circuit Bench of this Court, that an affidavit-in-opposition was filed in the form of a 'Report' on behalf of the respondent nos. 1 to 4. However, no affidavit-in-reply could be traced to have been filed.

3. The short contention raised by the petitioner is that the private respondent ought not to have been permitted in the second tender issued by the respondent-authorities in the matter of construction of Eastern side jetty on bored pile foundation at Kadamath Island in the Andamans.

4. It is contended by learned counsel for the petitioner that initially a tender was floated, wherein the petitioner came out as the only successful bidder. The private respondent's bid was found to be ineligible. However, subsequently the said tender was cancelled and a fresh tender floated, wherein the petitioner as well as the private respondent, along with other bidders, were held to be eligible for participation. The petitioner challenges the acceptance of the private respondent as an eligible bidder, since the scope of work in both the tenders is identical and the private respondent came out ineligible in the first tender.

5. Learned counsel for the petitioner argues that the second tender was apparently floated for the specific purpose of including the private respondent, despite the latter having failed to reach the eligibility mark in the first tender. Since the petitioner was the only successful bidder in the first tender, the second tender ought to be awarded to the petitioner as well.

6. Learned counsel appearing for the respondent-authorities argues that the private respondent successfully uploaded all requisite documents with its bid in the first tender, as well as sent physical copies of such documents by Speed Post well within time. Yet, those documents could not reach the tendering authority before the last scheduled date due to inordinate delay occasioned by the Postal Authorities. Since there was no fault on the part of the private respondent, the tender was cancelled and a fresh tender was called. In view of the pandemic situation prevailing at the relevant juncture, the ineligibility of the private respondent in the first tender was merely technical and due to no fault of the said respondent. It is further submitted that the petitioner could not have challenged the present tender process after having participated therein.

7. Learned counsel for the private respondent submits that the present challenge pertains to the first tender and has become infructuous on such tender being cancelled. Moreover, the petitioner having participated in the second tender, cannot now resile from such position and challenge the said tender.

8. Learned counsel for the petitioner, in reply, submits that the second tender was issued, upon cancellation of the first tender, during pendency of the writ petition. As such, the relief now sought by the petitioner is in aid of the writ petition and a necessary consequence thereof. Moreover, it is argued, the petitioner is not challenging the second tender in its entirety but merely challenges the acceptance of the bid of the private respondent, since the said respondent failed in the first tender, issued for the self-same work.

9. In this context, learned counsel for the petitioner relies on Sorath Builders vs. Shreejikrupa Buildcon Limited and another, (2009) 11 SCC 9 . It was held therein that the first respondent was negligent and insincere in not submitting his pre-

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