IN THE HIGH COURT OF CHHATTISGARH AT BILASPUR
ARUP KUMAR GOSWAMI, N.K. CHANDRAVANSHI, JJ.
M/s Clean Coal Enterprises Private Limited & Ors. - Petitioners
Versus
South Eastern Coalfields Limited & Ors. - Respondents
WPC No. 5266 of 2021
Decided On : 16-12-2021
Tender - Rejection of technical bid - Challenging rejection of technical bid of JV, this petition is filed alongwith a prayer for a declaration that JV is qualified for technical bid and consequently, to direct respondent No. 2 to open financial bid of JV – Held, Merely because some work order number, agreements etc. had been submitted, such submission of documents will not meet requirement of certificate of work experience - If decision relating to award of contract is bonafide and is in public interest, Court ought not, in exercise of power of judicial review, interfere even if a procedural aberration or error in assessment or prejudice to a tenderer is made out - It is further highlighted that issue of acceptance or rejection of a bid or a bidder should be looked at not only from point of view of unsuccessful party but also from point of view of employer - Terms of NIT cannot be ignored as being redundant or superfluous and they must be given a meaning and necessary significance - A perusal of order of rejection of technical bid would go to show that such rejection cannot be held to be an outcome of arbitrary, irrational or malafide exercise of power – Application dismissed.
ORDER :
Arup Kumar Goswami, J.
Heard Mr. Ashish Anand Barnad, learned counsel for the petitioners. Also heard Mr. Vaibhav Shukla, learned counsel for the respondents No. 1 & 2.
2. The 3 (three) petitioners formed a joint venture by the name and style of ‘M/s Gayatri Mining and Logistics JV’ (herein after referred to as the JV) and had responded to an e-tender notice, hereinafter referred to as NIT, bearing No.SECL/BSP/CMC/e-Tender/473 for hiring of Heavy Earth Moving Machinery (HEMM) and allied equipment for Over Burden Removal, loading in to tippers, transportation & unloading of excavated materials & silt, dumping, dozing, scrapping / removal of all bands, preparation / maintenance of haul road, water sprinkling and spreading of excavated material at the site shown & levelling dumps as per direction of the Management / Engineer-in-charge for a period of 1795 days at Amadand OCP, Jamuna Kotma Area.
3. The estimated value of the tender is Rs.2455,40,47,830.00 (Two Thousand Four Hundred & Fifty Five Crore Forty Lacs Forty Seven Thousand Eight Hundred and Thirty Only).
4. The technical bid of the JV was rejected by an order dated 06.12.2021.
5. Challenging the rejection of the technical bid of the JV, this petition is filed alongwith a prayer for a declaration that the JV is qualified for the technical bid and consequently, to direct the respondent No. 2 to open the financial bid of the JV.
6. Twelve bidders had participated pursuant to the said NIT and out of them, tender of three bidders, including that of the JV, were rejected. Remarks, in the order dated 06.12.2021, as against the JV, was indicated as “Failed to submit confirmatory document on subhead of ‘Work Experience’ required as per NIT’. This was followed by detailed reasons of rejection of bidders. It will be appropriate to take note of the reasons of rejection of bid of the JV, as reflected in the order dated 06.12.2021, which is as under :
“1. M/s GAYATRI MINING AND LOGISTICS -
Rejected under Confirmatory documents subhead of Work Experience.
WORK EXPERIENCE:
(I) Min value required – 50% of Annualised value = Rs.2,49,64,42,1889; Period of 07 years: 01.09.2014 to 31.08.2021;
(II) Claimed period as per BSCS: 01.09.2018 to 31.08.2019
1. In BSCS (Bid Submission Confirmation Sheet), the bidder had claimed to have executed 7 different works for a total updated value of Rs.4,17,84,46,789 during the period 01.09.2018 to 31.08.2019. On evaluation of the uploaded documents, it has been observed that the bidder did not upload work execution/Performance certificate for the works at Sl. No. 5, 6 & 7 claimed in the BSCS.
2. From the work experiences at Sl. No 1, 2, 3 & 4 claimed by the bidder in the BSCS and submitted the work Execution/ Performance Certificates from the employers, the value of works executed is Rs.91,55,030.68 + Rs.13,83,49,177.00 + Rs.75,00,62,84 + Rs.96,52,76,887 = Rs.118,77,87,378.68 which is less than the required minimum value of work experience.
3. The bidder was asked to upload the Work Execution Certificates from the employer for the work description, value and period of work claimed in Sl No. 5, 6 & 7 of BSCS under the Confirmatory Document Subhead of ‘Work Experience’ as per clause Nos. 6(A) & 7(2) of the NIT.
4. In response, the bidder submitted the clarification by submitting self certification confirming that the value of work performed by their JV partner and their subsidiaries are as follows :
1. Hind Energy and Coal Benefication Inida Ltd - Rs.45,07,10,559
2. Hindi Multi Services Pvt Ltd - Rs.28,91,84,700.
3. Radiant Coal Benefication Pvt Ltd - Rs.53,02,41,708.
The bidder informed that their JV partners and their subsidiaries have perfomed the work as mentioned above and certified by the CA in the period mentioned in BSCS. They informed that the certificate 26AS was attached with the earlier documents in the tender doc
Tender evaluations require strict adherence to documentation as specified in the bid criteria; deviations do not warrant judicial interference unless arbitrary.
The central legal point established in the judgment is the interpretation and application of the work experience criteria as per the tender form, particularly in the context of joint venture partners....
The court ruled that tender eligibility criteria must explicitly state disqualifications, allowing joint venture experience to be considered for bidder qualifications, ensuring clarity and fairness i....
Compliance with tender conditions, including financial capacity, submission of necessary documents, and establishment of required past experience, is crucial for the acceptance of bids.
Bidders must comply strictly with tender requirements; misleading information and poor performance can result in disqualification. Judicial review in tender cases should maintain restraint, supportin....
A bid submitted by a joint-venture must be maintained by the entity as a whole; failure to comply with tender requirements results in disqualification.
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