IN THE HIGH COURT OF CALCUTTA
Prakash Shrivastava, Rajarshi Bharadwaj, JJ.
Satyajit Panda - Appellant
Versus
Indian Oil Corporation Limited And Another - Respondent
FMA 318 of 2022 With CAN 1 of 2022 With CAN 2 of 2022
Decided On : 07-07-2022
Tender - Validity of rejection - Section 41 of The Motor Vehicles Act, 1988 - [Section 41 of The Motor Vehicles Act, 1988] - The court upheld the rejection of the appellant's tender by the Indian Oil Corporation, emphasizing the requirement of strict compliance with the tender conditions, including the submission of a valid smart card along with the registration certificate. The court referred to the provisions of Section 41 of The Motor Vehicles Act, 1988 and the Central Motor Vehicles Rules 1989, highlighting the necessity of submitting copies of smart cards at the preliminary scrutinizing stage to prove the vehicle's registration.
Fact of the Case:
The appellant's tender for the transportation of bulk petroleum products was rejected by the Indian Oil Corporation due to the alleged non-production of a registration smart card, which the appellant contended was unnecessary. The appellant challenged the rejection, arguing that the submission of the registration certificate constituted sufficient compliance with the pre-qualification condition.
Finding of the Court:
The court found that the rejection of the appellant's tender was justified, emphasizing the necessity of strict compliance with the tender conditions, including the submission of a valid smart card along with the registration certificate. The court referred to the provisions of Section 41 of The Motor Vehicles Act, 1988 and the Central Motor Vehicles Rules 1989, and distinguished the case from previous decisions where bids were rejected at different stages.
Issues: The issues revolved around the validity of the rejection of the appellant's tender, the necessity of submitting a registration smart card, and the compliance with Section 41 of The Motor Vehicles Act, 1988 and the Central Motor Vehicles Rules 1989.
Ratio Decidendi: The court's decision was based on the requirement of strict compliance with the tender conditions, including the submission of a valid smart card along with the registration certificate, as mandated by Section 41 of The Motor Vehicles Act, 1988 and the Central Motor Vehicles Rules 1989.
Final Decision: The appeal was dismissed, and the rejection of the appellant's tender was upheld, emphasizing the necessity of complying with the tender conditions, including the submission of a valid smart card along with the registration certificate.
JUDGMENT
Rajarshi Bharadwaj, J. - By this appeal, the correctness of the order of the Learned Single Judge dated 06.12.2021 passed in W.P.A. No 18646 of 2021 (Satyajit Panda-versus- Indian Oil Corporation Limted & Ors.) has been questioned by the appellant. The appeal is concerned with the order of the Learned Single Judge relating to the validity of the rejection of a tender to the appellant/writ petitioner by the respondent that invited bids for road transportation of bulk petroleum products.
2. The facts of the case as stated by the appellant were that the respondent by a notice of tender in the month of August 2021 invited bids for transportation of bulk petroleum products. In the said bid the respondent herein the writ petitioner took apart. Certain preconditions were set down for the tenderers in order to successfully submit their bids. One of such prerequisites was the submission of valid registration certificate from the concerned RTO in support of the Tank Trucks offered.
3. The Learned Single Judge by his order dated 06.12.21 rejected the petition stating that 'it was essential condition for pre-qualification that PESO for all the Tank Tucks offered would have complete Registration Certificates and a valid PESO license and that it appeared from the records that the petitioner had only produced a registration certificate of the TT with his tender and had not produced the relevant registration smart card.' The registration certificate itself issued by the Government of Orissa stipulated that the same was not valid unless it was accompanied by a valid smart card and a certificate of registration.
4. As per the Learned Single Judge, the petitioner's technical bid was rightly rejected by the Indian Oil Corporation since more than anyone else, the petitioners should have been aware of the requirement of strict compliance of the tender condition and production of smart card along with the Registration Certificates. Thus, the Learned Single Judge held that the instant writ petition must fail and therefore, dismissed it without any order as to costs.
5. The learned counsel appearing for the appellant appeals on the grounds that the Learned Single Judge had erred in law in not entering into the merit of the case and without considering the material facts, rejected the writ application. It is contended that the appellant produced the Registration certificate along with the tender constituted sufficient compliance of the pre- qualification condition.
6. It was also argued that the Learned Single Judge had erred in not considering that the endorsement at the bottom of the registration certificates that it is not valid in a motor vehicle without smart card, cannot invalidate the appelant's tender. The submission was that the smart card of the vehicles was only a formality which could not invalidate the entire bid.
7. Moreover, the learned counsel appearing for the appellant contended that the registration certificate produced by the appellant constituted sufficient compliance of Section 41 of the Motor Vehicles Act, 1988 and the rejection of the appellant's bid for alleged non-production of registration smart card was, arbitrary and not sustainable in law. Hence, the order of the Learned Single Judge disqualifying the appellant for absence of Smart Card was otherwise bad and liable to be set aside.
8. Having heard the learned counsel for the parties and on perusal of the records, this Court is of the view that Indian Oil Corporation was justified in invalidating the appellant's tender. The learned counsel appearing for the appellant had relied on the decisions of the Hon'ble Supreme Court dated 06- 05-2022 in Indian Oil Corporation Ltd. & Anr. v. Ganesh Movers and Logistics (P) Ltd. & Anr. SLP(c) No(s). 8325/2022 with SLP(c) No(s).8223/2022 as well as the decision of this Division bench dated 08.03.2022 in Indian Oil Corporation Ltd. & Ors. v. Ganesh Movers and Logistics (P) Ltd. & Anr (MAT 71 of 2022 with MAT 76 of 2022) while contending
Strict compliance with tender conditions, including the submission of a valid smart card along with the registration certificate, is necessary as per Section 41 of The Motor Vehicles Act, 1988 and th....
The main legal point established in the judgment is that the rejection of tenders must be based on valid legal grounds and cannot be arbitrary or unfair. The court emphasized the importance of legal ....
If two views are possible the Court should not impose the other view in the instant case.
Compliance with specific pre-qualification criteria and terms and conditions of a tender notice is crucial for the acceptance of a bid.
The rejection of a bid in a tender process should be based on merit consideration and qualification for allocation, and parties must plead and produce sufficient material to substantiate their case.
The main legal point established in the judgment is the implied power of the authority conducting the tender process to modify or relax tender terms in extraordinary situations, ensuring fair and rea....
Tender rejection upheld as petitioner failed to provide sufficient proof of machinery ownership as mandated, highlighting strict adherence to bid requirements.
The court affirmed that executive decisions in tendering must be devoid of arbitrariness, while confirming that non-compliance with technical criteria justifies rejection of a bid.
The court upheld that adherence to tender guidelines by public entities is essential, and allegations of impropriety must be substantiated for judicial intervention.
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