IN THE HIGH COURT OF CHHATTISGARH AT BILASPUR
P.R. RAMACHANDRA MENON, NARENDRA KUMAR VYAS, JJ.
M/s Ram Gopal Somani Through its Partner, Ram Gopal Somani, S/o Late Shri Ganesh Narayan Ji Somani – Appellant
Versus
Bilaspur Smart City Limited – Respondent
WPC No. 1123 of 2021
Decided on : 08-04-2021
Constitution of India,1950 – Tender/Contract - Tender Notification - Identification of the successful bidder - Respondent Bilaspur Smart City Limited floated Tender External Electrification with cable link in RCC Duct - Project was to be completed within 4 months and 'defect liability period' was 2 years handover - Bid was to be submitted in 3 envelopes Envelope 'A' would contain the EMD, Bid-Security, Bid-Fees and Integrity Pact/Affidavit; Envelope 'B' would contain the documents pertaining to pre-qualification and technical evaluation - Relevant clause enabling also a participant who was proceeding with the ongoing works, instead of necessity to have satisfactory completion of the work – Petitioner is a partnership firm qualified in all respects, submitted bid strictly in conformity with the terms and conditions of Tender - Respondent and another party were also in forefront and on opening - 3rd Respondent is not qualified both on the financial and experience criteria, as revealed from the documents uploaded by them along with the Tender.
Finding of the Court: Payment effected by the Awarder of in respect of the completed portion of work is different from the satisfactory completion of the project as insisted in the corrigendum notification - Being position allocation of the marks as given in the instant case presuming that the project had been satisfactorily completed is also not in conformity with the Tender conditions - we have already held allocation of full marks for the 'Financial Criteria' was not sustainable, for want of relevant documents submitted along with the Tender and this by itself would disqualify - Respondent, further deliberation with reference to 'Experience Criteria' is not necessary to be carried forward – Court are of firm view Respondent-BSCL has not properly considered objections – Court hold 'decision making process' done by Respondent-BSCL is per se wrong and unsustainable.
Result: Writ petition allowed
JUDGMENT :
P.R. Ramachandra Menon, J.
1. Identification of the successful bidder, pursuant to an allegedly wrong decision making process, ignoring the specific terms in the Tender Notification, in an attempt to extend undue favour to the 3rd Respondent, is the subject matter of challenge in this writ petition. The main ground of challenge is that, the 3rd Respondent is not qualified both on the financial and experience criteria, as revealed from the documents uploaded by them along with the Tender.
2. The Respondent Bilaspur Smart City Limited ('BSCL' for short) floated Annexure-P/2 Tender dated 13.11.2020 for External Electrification with cable link in RCC Duct at Vyapar Vihar Smart Road, Bilaspur for Bilaspur Smart City with the 'estimated cost of work' at Rs. 1121.76 Lakhs. The project was to be completed within 4 months and the 'defect liability period' was 2 years from the date of handover. The bid was to be submitted in 3 envelopes – 'A', 'B' & 'C', where Envelope 'A' would contain the EMD, Bid-Security, Bid-Fees and Integrity Pact/Affidavit; Envelope 'B' would contain the documents pertaining to pre-qualification and technical evaluation; whereas Envelope 'C' would contain the financial bid. After issuing the Tender, the Respondent-BSCL issued Annexure-P/3 corrigendum dated 21.11.2020, whereby some material changes were brought in, particularly with regard to the experience in the work by replacing the relevant clause enabling also a participant who was proceeding with the ongoing works, instead of the necessity to have satisfactory completion of the work. The last date for submission of the On-line bid was 04.12.2020 and the bids were to be opened on 08.12.2020, which subsequently came to be adjourned to 05.01.2021.
3. The Petitioner, who is a partnership firm qualified in all respects, submitted the bid strictly in conformity with the terms and conditions of the Tender. The 3rd Respondent and another party were also in the forefront and on opening the bid on 05.01.2021, the 3rd Respondent was declared as L-1 while the Petitioner was placed at L-2. On coming across the various discrepancies and inconsistencies with regard to the credentials of the 3rd Respondent with reference to the documents produced, Annexure-P/5 objection was preferred by the Petitioner on 07.01.2021, pointing out that the 3rd Respondent was not qualified, having not satisfied the requisite parameters notified in the Tender. It was also specifically brought out that the allocation of 'full marks' (30) under the 'financial criteria' was not correct, as the turnover disclosed from the certificate issued by the auditor clearly revealed that the 3rd Respondent was having only less than 8.00 crores' of turnover during the past three years and hence eligible to get only 20 marks' under this head. This by itself would have pushed down the 3rd Respondent (who was given 75 marks) to be with only 65 marks and since the Tender clearly stipulated a minimum of 70 marks, the 3rd Respondent was liable to be disqualified. It was further pointed out by the Petitioner that, though in Annexure-P/2 Tender conditions, under the head 'Work Experience', the ongoing work to the requisite extent was also liable to be reckoned for awarding the marks as per Annexure-P/3 corrigendum issued, the yardstick to have “satisfactory completion” of the work was observed. In the said circumstance, the 3rd Respondent was not having the requisite experience as well and hence was liable to be disqualified.
4. The above objections were turned down by the Respondent-BSCL vide Annexure-P/1 dated 21.01.2021, whereby it was stated that the evaluation of the credentials was done by the Bid Evaluation Committee strictly in accordance with the terms of the Tender and that since the 3rd Respondent was having a turnover of 11.854 crores for the Financial Year 2018-19, it was above 8.00 crores, thus justifying allocation of 30 marks (full marks) under this head; adding that the decision of the Bid Evalu
B.S.N. Joshi & Sons Ltd. v. Nair Coal Services Ltd. & Others reported in (2006) 11 SCC 548
State of Kerala v. Ramaswami Iyer & Sons reported in AIR 1966 SC 1738
Vidarbha Irrigation Development Corporation v. Anoj Kumar Agarwala reported in 2019(2) SCALE 134
Point of Law : Tender /Contract - allocation of full marks for the 'Financial Criteria' was not sustainable, for want of relevant documents submitted along with the Tender and this by itself would di....
The evaluation of tender bids must comply strictly with the qualifications defined in the tender, and any deviation or submission of erroneous documents leads to disqualification.
The court emphasized the importance of complying with tender qualification criteria and upheld the authority of the evaluation committee in assessing bid documents.
The court upheld the rejection of the petitioner's technical bid due to failure to meet registration requirements, emphasizing limited grounds for judicial review.
Tender evaluation must prioritize fairness, and the interpretation of criteria should avoid hyper-technical disqualifications that undermine competitive bidding processes.
The main legal point established in the judgment is the requirement for bidders to comply with the bidding documents, including the submission of documents in the specified format. The judgment empha....
Judicial review in tender matters is limited to assessing procedural fairness, not the merits of the tender conditions, which are determined by the tendering authority.
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