IN THE HIGH COURT AT CALCUTTA CIRCUIT BENCH AT JALPAIGURI
Moushumi Bhattacharya, Siddhartha Roy Chowdhury, JJ.
Goutam Ghosh – Appellant
Versus
The State of West Bengal & Ors. – Respondents
MAT 103 of 2022 With CAN 1 of 2022
Decided On : 13-01-2023
Constitution of India, 1950 – Article 226 – Classification of enterprises – Legal entity – Petitioner prayed for appropriate order towards cancellation and or revocation of financial bid – Held, Court do not find any reason to imbibe ourselves with view catered, learned Senior Counsel, regarding validity or applicability of said notification based on which the Ministry of MSME, Government of India brought certain changes towards classification of enterprise, registration of enterprises, composite criteria, investment, calculation of investment, process of registration etc. – Appeal dismissed.
JUDGMENT :
Siddhartha Roy Chowdhury, J.
1. Aggrieved by and dissatisfied with the judgement and order passed on 6th December, 2022 in W.P.A. No. 3239 of 2022 (Goutam Ghosh vs. The State of West Bengal and Ors.) the appellant (hereinafter referred to as ‘petitioner’) has filed this Intra Court appeal. By the impugned judgement and order learned Single Judge was pleased to dismiss the Writ Application.
2. In order to appreciate the appeal in its proper perspective we consider it expedient to indicate the facts in brief.
3. In the wake of notice by advertisement being NIT No. 4050/TN-2022, published in the official website of the Department of Correctional Administration, Directorate of Correctional Services, Government of West Bengal as issued by Inspector General of Correctional Services, West Bengal, regarding supply of dietary articles for the period from 1st October, 2022 to 31st March, 2023 for nine Correctional Homes of the State of West Bengal, the petitioner participated in the tender process and submitted required documents on 29th September, 2022. Though schedule date for opening of Technical bid document was 30th September, 2022, the concerned authority did not open such Technical bid. The participants were also not informed about the reason for delay. On 12th October, 2022 at about 11.43 a.m. the Technical bid was opened and it was found that in all 7 legal entity participated in the e-tender, except R.S. Bajaj Tea Company, the Technical bid of rest six participants were found to be proper by the authority, albeit the fact that the respondent nos. 4 and 5 did not have the requisite qualification to cross the threshold. The respondent no. 4 obtained UDYAM registration certificate by MSME Department on 14th September, 2014 indicating with manufacturing as its major activity. The respondent no. 4 did not provide any trade license in support of such manufacturing activity in terms of Clause 6 Cover 4 of the Technical bid package but was given the benefit as provided in Clause 7 (g) (Evaluation of tenders) of an UDYAM certificate holder under MSME. Respondent no. 4 got undue exemption from depositing earnest money as well as benefit of 15% price preference in connection with rate of an article. Neither the respondent no. 4 nor respondent no. 5 was eligible to take part in the e-tender as food service contractor because manufacturing was the major activity of both of them at the relevant point of time. They could not have participated in the financial bid without depositing the earnest money. The petitioner became the second lowest bidder: Had there been proper assessment of tender documents, the respondent nos. 4 and 5 would have been declared disqualified and the petitioner would become eligible L1 bidder. According to petitioner, respondent nos. 4 and 5 became L1 bidder as the authority concerned overlooked with mala-fide intention and for extraneous consideration. Since respondent nos. 4 and 5 did not deposit the earnest money and necessary documents regarding manufacturing plant packaging unit, deployment of labours, their tender documents ought to have been rejected by the concerned authority. By filling the application under Article 226 of the Constitution the petitioner prayed for appropriate order towards cancellation and or revocation of financial bid dated 7th November, 2022 and work order issued on 16th November, 2022 and also for revocation of the whole e-tender process among other relief.
4. Learned Single Judge having considered materials made available on record as well as submission of learned Counsel representing the parties to the proceeding was pleased to dismiss the Writ Application, however, without cost.
5. Assailing the impugned judgement Mr. Kalyan Kumar Bandyopadhyay, learned Senior Counsel for the petitioner submits that learned Single Judge approached the entire issue with closed mind and expressed opinion that “there is nothing to suggest that the petitioner stands at a better footing than that of re
Medium enterprises are not entitled to Earnest Money Deposit exemption under government rules, highlighting the necessity for proper MSME classification in tender processes.
The court emphasized the principles of judicial restraint in administrative action, the lack of expertise of the court to correct administrative decisions, and the importance of public interest in te....
The main legal point established in the judgment is the court's authority to intervene in the tender process if it is found to be contrary to the principles of equality and non-arbitrariness as enshr....
The court emphasized that strict compliance with tender conditions is essential and that arbitrary qualification despite disqualifications undermines the fairness required in the contracting process.
MSEs with valid Udyam Registration are exempt from turnover and experience criteria in bidding processes as per applicable regulations, and arbitrary disqualification on these grounds is unlawful.
Judicial review of tender processes is limited to ensuring fairness and transparency. Tendering authorities may correct inadvertent errors in technical evaluations during the stipulated process windo....
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