2017 Supreme(Del) 20
IN THE HIGH COURT OF DELHI AT NEW DELHI
BADAR DURREZ AHMED, ASHUTOSH KUMAR, JJ.
Sunil Gulati - Petitioner
Versus
Delhi Development Authority - Respondent
W.P. (C) Nos. 11911 of 2015 & 6481 of 2016
Decided On : 03-01-2017
For the Petitioner: Mr. Sumit Choudhary
For the DDA : Mr. Rajiv Bansal, Mr. Dhanesh Relan, Ms. Arpita, Ms. Isha Garg, Mr. Siddharth Gupta, Mr. Sanjeev Sabharwal
Headnote:
Land Law - Auction - Qualification criteria - Removal, denied - Petitioners are registered Tent houses with the DDA - Qualification criteria has been challenged - E-auction of open spaces for the purposes of marriage, social/cultural and religious functions on license fee basis - It was claimed to be arbitrary - Petitioners have sought a direction to the respondent to consider the tender applications of the petitioners without applying the given eligibility criteria - A higher eligibility criteria was fixed by the respondent which was later reduced to the present allegedly offending eligibility clause - Prior to the invitation of the tender, objections of various bidders were taken into account - On proper scrutiny and assessment, the eligibility condition was fixed - An unsuccessful bidder's assertion that such eligibility term is not fair would be of no consequence - Held eligibility condition is not any manner arbitrary, discriminatory - Petitions are dismissed.
Ashutosh Kumar, J.
1. In both the writ petitions, similar reliefs have been prayed for, hence both are being disposed of by this common order.
2. The petitioners in both the writ petitions are registered Tent houses with the respondent/DDA. They have challenged the qualification criteria appearing on page 14 of the tender document (contained in Annexure D to the writ petition no. 11911/2015) for e-auction of open spaces for the purposes of marriage, social/cultural and religious functions on license fee basis which was floated on 28.11.2015, as being arbitrary, unreasonable and having the potency of ousting the smaller operators from participating in the tender and ultimately resulting in loss to the government exchequer. Alternatively, the petitioners have sought a direction to the respondent to consider the tender applications of the petitioners without applying the aforesaid eligibility criteria.
3. Before dealing with the grounds of challenge in these writ petitions, it would be necessary to cull out the impugned qualification criteria.
“V. QUALIFICATION CRITERIA
1. Eligibility Criteria: Bidders can be an individual, a Proprietorship firm, Company, Partnership engaged in any one or more of the following business:
i. Tent and decoration
ii. Event management
iii. Caterer and
iv. Hotel banquet
Further, the bidder shall have minimum average annual turnover for the last three financial years prior to 2014-15 (i.e. 2011-12, 2012-13 and 2013-14) from above said businesses. As follows;
a. Bidder with average annual turnover of at least Rs. 1 crore and below Rs. 3 crores can bid for 3 sites which are of 3000 sq. mtr. listed at SI. No. 10, 11 &15 in appendix-I, with the condition that as soon as the bidder is declared H-1 in any of these 3 sites, he will be out of the bidding process thereafter.
b. Bidder with average annual turnover of at least Rs. 3 crores and below Rs. 5 crores can bid for any site but he can be H-1 for one site only i.e. as soon as the bidder is declared H-1 in any one of the 19 sites, he will be out of the bidding process thereafter.
c. Bidder with average annual turnover Rs. 5 crores and above can bid for any number of sites but he can be H-1 for any two sites only i.e. as soon as the bidder is declared H-1 in any two sites, he will be out of the bidding process thereafter.”
4. The tender papers further indicate that a bid shall be responsive only if the proposal offered by the bidder meets the eligibly criteria and other conditions namely, payment of EMD online, receipt of proposal online by the due date, proposal containing information and comments as required for which should be within the validity period.
5. It appears that prior to the floating of the aforesaid tender, another tender document was floated in July 2015 wherein the eligibility criteria was fixed at the average annual turnover of Rs. 25 crores for the period of 2011-12, 2012-13 and 2013 -14. But on protest by petitioners and others, the eligibility criteria of annual turnover was later reduced to the present impugned criteria. The present tender for e-auction of spaces has been floated for 13 sites in North zone and 6 sites in East zone.
6. It has been submitted that most of the registered tent owners including the petitioners, would not be in a position to participate in the tender as they do not have the requisite turnover required under the tender document as basic eligibility criteria and that the required turnover of Rs. 1 crore to participate in the bid is absolutely unwarranted, unnecessary, arbitrary and aimed at preventing weaker parties in participating in the tender and only promoting corporate houses for the purpose. It has been argued that such criteria would kill competition and would unnecessarily benefit bigger operators in the field. There would be a strong possibility, in case of such high eligibility criteria being insisted upon, of spaces remaining vacant which would ultimately cause losses to the government exchequer. Additiona