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2021 Supreme(Del) 45

IN THE HIGH COURT OF DELHI
VIPIN SANGHI, REKHA PALLI, JJ.
Siemens Healthcare Private Limited & Another - Appellant
Versus
Directorate General of Health Services, Central Procurement Agency & Others - Respondent
W.P.(C). No. 3452 of 2020 & CM APPL. No. 12240 of 2020
Decided On : 19-01-2021

Advocates:
Advocate Appeared:
For the Appellant :Govind Rishi, Advocate.
For the Respondents: Gautam Narayan, ASC.

The court emphasized that the purpose of scrutinizing a tender document should not be to unreasonably disqualify an otherwise qualified bidder, as it would curtail competition and not be in the public interest.

Headnote:

Tender Disqualification - E-Tender Process - Manual for Procurement of Goods, 2019 - Section 1, Clause 6, 11, 27 - The court quashed the disqualification of the petitioner in respect of the tender in question. The court held that the minor infirmity in the submitted undertaking warranted the invocation of Clause 27 by the respondents. The respondents' hyper-technical approach to disqualify the petitioner was deemed unfair and unreasonable. The court emphasized that the purpose of scrutinizing a tender document should not be to unreasonably disqualify an otherwise qualified bidder, as it would curtail competition and not be in the public interest.

Fact of the Case:

The petitioner participated in an e-tender process for procuring radiography systems. The petitioner was disqualified due to an allegedly unverified/notarized undertaking. The petitioner approached the court seeking to quash the disqualification.

Finding of the Court:

The court found that the petitioner's submitted undertaking was duly notarized and any minor infirmity warranted the invocation of a specific clause. The court criticized the respondents' hyper-technical approach and emphasized the importance of not unreasonably disqualifying qualified bidders.

Issues: The issues included the validity of the petitioner's undertaking and the reasonableness of the disqualification.

Ratio Decidendi: The court held that the minor infirmity in the submitted undertaking warranted the invocation of a specific clause, and the respondents' hyper-technical approach to disqualify the petitioner was unfair and unreasonable.

Final Decision: The court quashed the disqualification of the petitioner and directed the respondents to grant an opportunity to the petitioner to rectify any infirmity in the submitted undertaking.

JUDGMENT :

VIPIN SANGHI, J.

1. The petitioner has preferred the present writ petition seeking the following reliefs:

    “(a) Allow present Writ Petition under Article 226 & 227 read with Article 14 & 21 of the Constitution of India and Issue a writ thereby quashing/modification of the impugned order/decision dated 03.04.2020 and 08.04.2020 (Annexure P-8 ) passed by Respondent No.1 thereby unilaterally disqualifying the Petitioner and not opening the financial bid of Petitioner.

(b) And directions may please be issued to allow the Petitioner's financial bid may kindly be opened and petitioners also be allowed to participate further in the said tender and if bid of petitioner is Lowest, petitioners may be awarded the work.

(c) AND Allow present Writ Petition under Article 226 & 227 read with Article 14 & 21 of the Constitution of India and further it is prayed that the operation of the opening of the financial bid may kindly be stayed till the present writ petition is pending before this Hon’ble Court as the same will automatically come into operation after opening of the technical bid.”

2. The case of the petitioners is that the respondents initiated an e- tender process for the purpose of procuring 3 units of 1000mA Digital Flat Panel Fluoroscopy Radiography System and related services by way of a tender document bearing tender ID 2019_DHS_181723_1; Ref no: TN 19_10 1000mA DFRS Covering 1000 MA DIGITAL FLAT PANEL FLUOROSCOPY RADIOGRAPHY SYSTEM.

3. The petitioner no.1, an affiliate company of petitioner no.2, participated in the tender process and its technical bid was found to be in order. However, soon thereafter on 03.04.2020, the petitioner no.1 was informed that it was disqualified from the tender process, without being provided any reasons therefor. The petitioner then made several representations to the respondents requesting that the reasons for its disqualification be disclosed, which went unanswered. Finally on 29.05.2020, the petitioner received an email from the respondents – communicating the reasons for its disqualification. The said email communication reads as follows;

    “Sir

With reference to information sought by Kumar, Rakesh rakesh.kumar@siemenshealthineers.com via email on dated 12.05.2020, as directed and approved by the Competent Authority the clarification in this matter is as under-

M/s Siemens Healthineers had participated in Tender ID : 2019_DHS_181723_1 ; Ref no : TN19_10 1000mA DFRS Covering 1000 MA DIGITAL FLAT PANEL FLUOROSCOPY RADIOGRAPHY SYSTEM and PQ Evaluation Committee has disqualified to the said firm due to submission of undertaking which was not verified / notarized as per Tender requirement.

Then, the file was sent to the Technical Evaluation Committee and file was received back with the note of the committee, declaring all the bidders technically compliant.

But, since the M/s Siemens Healthineers was already disqualified at the PQ stage, therefore, permission to open the price bid of the PQ and TQ qualified bidder was taken from Competent Authority.

Regards

Prabhat Kumar” (emphasis supplied)

4. Upon receiving the aforesaid reasons, the petitioner preferred the present writ petition which was taken up by the Court on 10.06.2020. While issuing notice in the petition on that date, this Court directed the respondents to refrain from taking any further steps to finalise the L1 Bidder in respect of the tender in question, till the next date. That interim order has been extended thereafter and continues to operate. The respondents have filed their counter-affidavit and their written submissions along with several decisions, on which reliance is sought to be placed.

5. We have heard the learned counsels, and proceed to judgment.

6. The submission of learned counsel for the petitioner is that the reason for disqualifying the petitioner is stated to be the petitioner’s failure to submit an undertaking duly verified/ notarised as per the tender requirements. The requirement for submission of tender documents along with

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