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2021 Supreme(Del) 605

IN THE HIGH COURT OF DELHI AT NEW DELHI
VIPIN SANGHI, JASMEET SINGH, JJ.
M/s I.S. Enterprises - Appellant
Versus
Jamia Millia Islamia & Anr. - Respondents
W.P.(C) 5972 of 2021 & CM APPL. No. 18878 of 2021
Decided on : 12-10-2021

Advocates:
Advocate Appeared:
For the Appellant :Mr. Kirti Uppal, Ms. Riya Gulati, Advocate
For the Respondent:Mr. Pritish Sabharwal, Mr. Shivankur Shukla, Advocate

Point of Law: Remitted the matter back to the High Court for deciding the matter on merits even when the subject tender had already been finalized and the purchase order had been issued to the successful.

Headnote:

Micro, Small and Medium Enterprises Development Act, 2006 - Jamia Millia Islamia Act, 1988 - Electrical works - Bidders - Tender - Petitioner is engaged in electrical works including civil and mechanical works, operation, maintenance and repair services for electrical equipments for power distribution system, housekeeping services, manpower supply and civil work is sole proprietor of Petitioner - Petitioner has been doing work for which tender has been issued for last two years at Jamia Millia Islamia University Campus - Respondent No.1 is a University constituted - Respondent No.2 is M/s Prime Facility Management having its registered office at 1159, Pocket - 3, Apartments, Sector - 19 and was one of bidders for tender issued by Respondent No.1 and was subsequently selected as lowest bidder i.e., L1 in the bidding process - Whether work under contract awarded to Respondent No.2, has commenced or not, no interim directions were passed.

Finding of the Court:

Respondent no. 1 non-suited Petitioner relying on 8 - additional terms under which only a “Preference” was to be given - Aforesaid unreasonable and discriminatory action of Respondent no. 1 weighs in Court mind - Hence, Court allow this petition and direct the Respondent no. 1 to review bid of Petitioner and open price bid submitted by it. Additionally, Court hold that the evaluation of the bid of Respondent No.2 - as a Consortium is illegal, and it should be reassessed while ignoring qualification claimed by Respondent No.2 on strength of its Consortium Partner i.e. Enterprises - Further steps be taken to award tender in accordance with law, if necessary by terminating contract awarded to Respondent No.2.

Result: Petition allowed

JUDGMENT :

JASMEET SINGH, J

1. The present writ petition has been filed by the Petitioner seeking a writ in the nature of Mandamus or any other appropriate writs or orders, thereby seeking quashing of the process of evaluation of bids and further to direct the Respondent No.1 to review the Tender Bid of the Petitioner for E-Tender no.JMI/BD/E-NIT/No.28/2020-21, for job work for operation, maintenance and attending the essential services of Jamia Millia Islamia Campus.

2. The Petitioner has also prayed a writ in the nature of Mandamus seeking quashing and setting aside of the impugned Notice dated 25.05.2021 and further a direction to Respondent No.1 to open and consider the price bid of the Petitioner.

3. The Petitioner has further sought writ in the nature of Mandamus directing Respondent No.1 not to proceed with the tender to the alleged L-1 bidder i.e. Respondent No.2 whose price bid has been wrongly opened by the Respondent No.1.

4. In a nutshell, the facts in the present case are stated below.

5. The Petitioner is a company having its registered office at R-248, Ground Floor, Gali No. 4, Jogabai Extension, Jamia Nagar, Okhla, New Delhi-110025 and is having a valid registration under Micro, Small and Medium Enterprises Development Act, 2006 (“MSME Act”).

6. The Petitioner is engaged in electrical works including civil and mechanical works, operation, maintenance and repair services for electrical equipments for power distribution system, housekeeping services, manpower supply and civil work. Mr. Irfan Ahmad is the sole proprietor of the Petitioner. The Petitioner has been doing the work for which the tender has been issued for last two years at Jamia Millia Islamia University Campus.

7. The Respondent No.1 is a University constituted under Jamia Millia Islamia Act, 1988. The Respondent No.2 is M/s Prime Facility Management having its registered office at 1159, Pocket – 3, Akeshar Dham Apartments, Sector – 19, Dwarka, New Delhi-110075 and was one of the bidders for the tender issued by the Respondent No.1 and was subsequently selected as lowest bidder i.e., L1 in the bidding process.

8. The Respondent No.1 floated E-tender No. JMI/BD/E-NIT/No.28/2020-21 on 02.03.2021 inviting Bids for Job work for operation, maintenance and attending the essential services of Jamia Millia Islamia Campus.

9. The Petitioner states that he submitted its technical bids along with its financial bids before 15.03.2021 in terms of the Notice Inviting Tender (NIT). The bid was opened on 17.03.2021 at 11:30 AM. The Petitioner submitted its technical bid as per the eligibility criteria. Further, as per the NIT eligibility requirement clause (3), the bidder was liable to submit the following documents which were duly submitted by the Petitioner in its Bid:

Clause no.

Obligation of bidder

Complied by bidder

(i)

PAN number

Submitted

(ii)

Previous three years income tax return/clearance

Submitted

(iii)

TIN Number/GST Registration

Submitted

(iv)

Latest ITR

Submitted

(v)

ESIC Registration

Submitted

(vi)

EPFO Registration

Submitted

(vii)

Valid electrical license

Submitted

(viii)

Power of attorney/authority letter in case person other than the bidder has signed the tender documents

Submitted

10. The Petitioner came to know from reliable sources that the Respondent No.1 technically rejected the bid of the Petitioner on 25.05.2021 on the ground of “submission of incomplete documents (as required in E-NIT)”. The respondent No.2 was selected as the lowest bidder after opening of his financial bid on 27.05.2021.

11. The Petitioner wrote several representations to Respondent No.1 and more particularly, on 01.06.2021, 04.06.2021, 11.06.2021 seeking clarifications for the rejection of the bid of the Petitioner and also highlighting that Respondent No.2 was, in fact, ineli

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