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2024 Supreme(Chh) 184

IN THE HIGH COURT OF CHHATTISGARH, BILASPUR
Ramesh Sinha, CJ., Ravindra Kumar Agrawal, J.
FTA HSRP Solutions Private Ltd. Through Its Director Kapil Kanaiyalal Popat S/o Kanaiyalal Popat - Appellant
Vs.
State Of Chhattisgarh Through Its Secretary, Transport Department, Mahanadi Bhawan, Atal Nagar, New Raipur Chhattisgarh - Respondent
WPC No. 809, 786 of 2022
Decided On : 24-04-2024

Advocates:
Advocate Appeared:
For the Appellant : Mr. Siddharth Agrawal, Senior Adv, (through Video Conferencing) and Mr. Shobhit Mishra, Adv.
For the Respondent: Mr. Sangharsh Pandey, Government Adv., Mr. Aman Preet Singh Rahi (through Video Conferencing) and Mr. Abhinav Sharma,
For the Intervenor : Mr. Vaibhav Shukla, Mr. Rohan Sharma, Ms. Mahima Malhotra and Mr. Himanshu Yadu, Advs.

The eligibility criteria in tender processes necessitate demonstrable technical experience across multiple jurisdictions, and courts refrain from interfering with decisions based on alleged non-compliance unless shown to be arbitrary.

Headnote:(A) Invitation for Bids - Clause 1.1.4, 4.3.1, 1.2.3, 6.8 - Eligibility criteria for tender process - Both petitioners challenged the rejection of their bids due to non-compliance with eligibility criteria, particularly lack of experience in HSRP projects across five states. The court noted that bidders must demonstrate technical experience in implementing HSRP in all RTOs and DTOs across the relevant states. The court held that non-compliance with technical requirements justified rejection. (Paras 39-46)

(B) Judicial Review - Tender Process - The court emphasized that judicial review of administrative actions in tender processes should be limited, and courts will not interfere if the decision is not arbitrary or irrational. Tendering authorities have the discretion to determine eligibility, and such determinations should not be substituted by courts. (Paras 41-44)

Facts of the case:
The petitioners, both companies, were rejected in a tender by the Transport Department of Chhattisgarh for failing to meet qualifications specified in the invitation for bids, revealing that while the bid process included scrutiny of compliance with numerous criteria, the petitioners contended they met the necessary qualifications based on past performance. (Paras 4-10)

Findings of Court:
The court found that the Transport Commissioner acted within the bounds of their authority in determining the petitioners did not fulfill the stipulations set forth in the IFB documentation, which were deemed reasonable for the tender evaluation process. (Paras 39-46)

Issues: The court addressed whether the petitioners met the eligibility criteria of executing HSRP projects in at least five states under contracts with State/Union Territory governments, and if the rejections of the bids were arbitrary. (Paras 4, 39-46)

Ratio Decidendi: The court ruled that the rejection of the bids was substantiated by clear evidence of non-compliance with technical qualifications and emphasized the separation of powers in tender evaluations, stating that judicial oversight should be reluctant to overstep administrative discretion in such matters. (Paras 41-46)

Result: Both writ petitions dismissed, maintaining the rejection of the bids. (Para 46)

Table of Content
1. consolidation of petitions due to similar issues. (Para 1 , 2 , 3)
2. rejection of bids based on eligibility criteria outlined in the ifb. (Para 4 , 5)
3. claim of qualifications and malafide intent in rejecting bids. (Para 6 , 7)
4. evidences of competitive pricing and unfair advantages in the bidding process. (Para 8 , 9)
5. court’s observation on the bid evaluation and justification of the rejection. (Para 10 , 11 , 12)
6. judicial restraint in administrative matters and evaluation criteria for tender. (Para 13 , 14 , 15 , 16)
7. conclusion and affirmation of administrative integrity. (Para 17 , 18)
8. final decision dismissing petitions. (Para 19 , 20)
9. principles of fair play and public interest in the context of tender evaluations. (Para 39 , 44)
10. final dismissal of petitions with no costs awarded. (Para 46 , 47)

JUDGMENT :

Ramesh Sinha, CJ.

1. Since the facts and issue involved in both the above writ petitions are similar, they are being considered and decided by this common judgment.

2. The petitioner-FTA HSRP Solutions Private Ltd. in WPC No. 809/2022 has prayed for the following reliefs:

    “10.1 That, this Hon'ble Court may kindly be pleased to allow the present writ petition and direct the Respondent No. 3 to produce entire records of the present case.

    10.2 That, this Hon'ble Court may kindly be pleased to issue a writ to quash and set aside the decision of the Respondent No.03 to reject the bid of the Petitioner pursuant to the invitation for Bids bearing Tender No. TD/02/TC dated 13.11.2021 and the subsequent corrigendum, in the interest of justice.

    10.3 That this Hon'ble Court may kindly be pleased to put on hold the execution of the Contracts with successful bidder and if the contracts have already been executed, to issue orders to stay all subsequent proceedings of the tender process.

    10.4 That, any other order/relief which this Hon'ble Court may deem fit, proper and just in the facts and circumstances of the present case may also kindly be awarded to the petitioner in the ends of justice & equity.

    10.5 That, the cost of the petition may kindly also be awarded to the petitioner.”

3. The petitioner-Celex Technologies Pvt. Ltd. in WPC No. 786/2022 has prayed for the following reliefs:

    “(i) Call for the entire records of the present matter, more particularly records pertaining to the Invitation for Bids bearing Tender No. TD/02/TC dated 13.11.2021, for the kind perusal and consideration of this Hon'ble Court; and/or

    (ii) Issue a writ of mandamus or other appropriate writ, order or direction quashing and setting aside the decision of the Respondent No. 2 Authority to reject the Bid submitted by the Petitioner pursuant to the Invitation for Bids bearing Tender No. TD/02/TC dated 13.11.2021; and/or

    (iii) Issue a writ of mandamus or other appropriate writ, order or direction quashing and setting aside the e-mail dated 05.02.2022 whereby the Petitioner was informed about the rejection of the bid submitted by it pursuant to the Invitation for Bids bearing Tender No. TD/02/TC dated 13.11.2021; and/or

    (iv) Pass such other Orders or Directions as it may deem fit.”

4. Both the petitions arise from invitation of bids bearing Tender No. TD/02/TC dated 13.11.2021 and the subsequent corrigendum issued by the Transport Commissioner, Government of Chhattisgarh, for implementation of the project for assembling, establishing, procuring technology, designing, developing, producing, embossing, affixing and fittings of High Security Registration Plates (for short, the HSRPs) in the State of Chhattisgarh. The petitioners in both the petitions are Companies registered under the Companies Act, 1956 and are engaged in manufacturing, supplying and affixing HSRPs. The petitioners participated in the tender floated by the respondent- Transport Department of the State of Chhattisgarh. They are aggrieved by rejection of their bids. In WPC No. 809/2022, the petitioner came to know about the rejection of his bid from the portal of the Chhattisgarh

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