IN THE HIGH COURT OF DELHI AT NEW DELHI
Vipin Sanghi, Rekha Palli, JJ.
DSPC Engineering Pvt. Ltd. - Petitioner
Versus
MECON Ltd. - Respondent
W.P.(C) 8845 OF 2020 and CM APPL. Nos.28416 & 33281 OF 2020
Decided On : 23-03-2021
Constitution of India, 1950 - Article 226 - Micro, Small and Medium Enterprises Development Act, 2006 – Tender - Business of executing contracts for installation of pipelines for oil and gas sector in India - Bidder - Petitioner company is registered with Registrar of Companies, Delhi, also having registration under Act, 2006 – petitioner claimed to achieve the Technical Criteria for Section II on the premise that its 100 % subsidiary company - M/s. Shandong Kunyu Pipeline Engineering Co. Ltd. (SKPECL) has the requisite Technical Experience - Whether rigor of said corrigendum is attracted in case of petitioner, since its Supporting Company is founded and based in China, which is a country sharing land border with India - Whether Corrigendum which enforces Public Procurement Orders above referred to, is attracted in case of petitioner, since its Supporting Company is admittedly a company incorporated in, and doing business in, a country which shares land borders with India.
Finding of the Court: Bidding company is dependent upon technical experience of another company (Supporting Company), with the view to ensure commitment and involvement of “Supporting Company" for successful execution of the contract, the participating bidder should include enlisted agreement/ guarantees/ undertakings along with the techno - commercial bid - new clause was introduced regarding “provision for procurement from a bidder which shares a land border with India” - Analyse requirements of Corrigendum which is founded upon orders issued by the Department of Expenditure, Ministry of Finance, Government of India being Public Procurement Order, Public Procurement Order and Public Procurement Order - Clause 2 of Corrigendum states that any bidder from a country which shares a land border with India will be eligible to bid in tender only if bidder is registered with Competent Authority - Submission of petitioner is that petitioner is a company incorporated in India and therefore stipulation contained in Clause 2 of Corrigendum is not applicable to it. To examine this submission, we need to see as to what is the meaning of expression “Bidder” in terms of Corrigendum.
Result: Petition dismissed
JUDGMENT :
VIPIN SANGHI, J.
1. The issue that arises for consideration in this writ petition under Article 226 of the Constitution of India is: Whether the policy decision of the Government of India, which requires that any bidder from a Country which shares land border with India should register with the Competent Authority, is attracted in the case of the petitioner. The above issue arises for consideration in the following background:
2. The petitioner company is registered with the Registrar of Companies, Delhi, also having registration under the Micro, Small and Medium Enterprises Development Act, 2006. It carries on its business of executing contracts for installation of pipelines for oil and gas sector in India, for Indian Oil Corporation Limited. The case of the petitioner is that the respondent namely, Mecon Ltd. – which is a project management consultant of GAIL India Limited, issued an advertisement inviting bids for E-Tender No. 8000016825 for laying pipeline, and associated works of 36’’ Inches x 112.500 km under Dhamra-Angul Pipeline Project of Jagdishpur-Haldia Bokaro- Dhamra Pipeline Project (JHBDPL) PH-II, on or about 02.07.2020. The tender work was split into 3 Sections, namely Section I, II and III. The petitioner submitted its bids for Section II, with which we are concerned.
3. The case of the petitioner is that Section II of the invitation to bid, “Clause A”, relates to Technical Criteria. It, inter alia, lays down the Experience Criteria. Admittedly, the petitioner claimed technical competence to offer its bid by relying on the Explanatory Note (iii) to Clause A in the Technical Criteria. Since the same is relevant, we reproduce the Technical Criteria contained in Clause A, as well as the “Note to A” which reads as follows:
“BID EVALUATION CRITERIA & EVALUATION METHODOLOGY
A. Technical Criteria
A.1 The bidder should have successfully executed/completed in last 10 (Ten) years to be reckoned from the bid due date, at least one single contract (*) involving laying/installation, testing of buried cross country hydrocarbon steel Pipeline of diameter and length as given below for qualifying for the quoted section(s):
For Section-I Minimum 16 Km of Dia. 18" OD or above in a single stretch.
For Section-II Minimum 14 Km of Dia. 18" OD or above in a single stretch.
For Section-III Minimum 15 Km of Dia. 18" OD or above in a single stretch.
(*) In case more than one contract are emanating against one tender, these contracts are to be considered as single contract for evaluation of credentials of a bidder for meeting their experience criteria.
Bidders who intend to qualify for more than one section shall meet the qualifying requirement on cumulative basis for the quoted section (s).
A.2 In case the bidder has an experience as a consortium member and such a member has executed earlier a job within its scope as a member of the consortium, which is required as experience as per the qualification criteria in clause no. A.1, will be considered. Appropriate documentary evidence to establish this is to be submitted towards such experience.
A.3 EQUIPMENT DEPLOYMENT CRITERIA
Bidder shall meet the minimum construction equipment requirement as specified in Annexure-9A of the bidding document. Bidders who intend to qualify for more than one Section shall meet the cumulative requirement for construction equipment specified for individual section.
Note to A:
(i) A Job executed by a Bidder for its own plant/project cannot be considered as experience for the purpose of meeting BEC of this Tender Document. However, jobs executed for Subsidiary/Fellow subsidiary/Holding company will be considered as experience for the purpose of meeting BEC subject to submission of tax paid invoice (s) duly certified by Statutory Auditor of the Bidder towards payments of statutory tax in support of the job executed for Subsidiary/Fellow subsidiary/Holding company. Such Bidders to submit these documents in addition to the documents specified to meet BEC.
(ii) Consor
SupremeToday
Point of law: Tender work – Technical bidder - Governmental Order/ Corrigendum - Works Contracts, Including Turnkey Contracts - Bid Evaluation Criteria & Evaluation Methodology - Clause 3 defines bid....
A subsidiary company can rely on the experience of its parent company and cannot be rejected solely for lacking its own experience. Penal provisions cannot be invoked against a subsidiary based on th....
Point of law: Entire process of awarding the contract by respondent No.2 in favour of Respondent No.3 cannot be accepted as valid
A change of name of a registered entity does not affect its legal existence, but failure to register correctly can invalidate tender submissions. Courts limit interventions in tender processes unless....
Court ruled the rejection of a technical bid for using an authorized dealer's DSC was arbitrary as eligibility conditions were met, emphasizing fair competition in tender processes.
The State must act validly for a discernible reason and not whimsically in matters of tender.
Rule 23(16)(iv) of Assam Public Procurement Act, 2020 is reproduced Bidders securing specified minimum percent of marks or having fulfilled specific minimum achievement norms as fixed may be consider....
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.
Login now and unlock free premium legal research
Login to SupremeToday AI and access free legal analysis, AI highlights, and smart tools.
Login
now!
India’s Legal research and Law Firm App, Download now!
Copyright © 2023 Vikas Info Solution Pvt Ltd. All Rights Reserved.