IN THE HIGH COURT OF DELHI AT NEW DELHI
Vipin Sanghi, Rekha Palli, JJ.
Swami Samarth Engineers Ltd - Appellant
Versus
National Highways Authority Of India - Respondent
W.P. (C) No. 1853 of 2021; C.M. Appl No. 5361 of 2021, 5362 of 2021
Decided On : 12-02-2021
Joint-Venture - Bidding Process - NHAI/Tech/MH/PangareWarangaPhata/PATSC/2019/00152 - The court discussed the rejection of the joint-venture's bid based on financial capacity, technical capacity, and past experience as per the tender conditions. The court found that the joint-venture failed to meet the financial capacity requirements, did not submit necessary documents, and could not establish the required past experience. The rejection of the bid was justified based on these grounds.
Fact of the Case:
The petitioner, a joint-venture, submitted a bid in response to a Tender/Request For Proposal (RFP) issued by NHAI. The respondent issued a communication seeking clarifications from the joint-venture regarding its bid. After the joint-venture's response, the respondent rejected the bid, leading to the present petition.
Finding of the Court:
The court found that the petitioner's bid was rightly rejected based on non-compliance with financial capacity requirements, failure to submit necessary documents, and inability to establish the required past experience.
Issues: The issues involved the rejection of the joint-venture's bid based on financial capacity, technical capacity, and past experience as per the tender conditions.
Ratio Decidendi: The joint-venture failed to meet the financial capacity requirements, did not submit necessary documents, and could not establish the required past experience, justifying the rejection of the bid.
Final Decision: The petition was dismissed along with the pending applications.
JUDGMENT
Vipin Sanghi, J. - The present petition has been preferred by the petitioner/ M/s Shri Swami Samarth Engineers Ltd. to seek the following reliefs:-
"(i) ISSUE appropriate writ (s) or writ in the nature of mandamus directing Respondent to withdraw and cancel the Technical Evaluation Report dated 03.02.2021 and allow the Petitioner to participate in the bidding process and clarify and submit any documents necessary; AND/OR;
(ii) ISSUE appropriate writ or writs to protect the rights of Petitioner to proper hearing and direct the Respondent to consider Petitioner's bid in oral hearing;"
2. The petitioner, alongwith its joint-venture partner, responded to the Tender/Request For Proposal (RFP) issued by the respondent/NHAI for 4- laning of Pangare to Waranga Phata section from Km 134.500 to Km 174.645 (Design Chainage) of NH-161 including Bypasses at Kalamnuri and Akhada Balapur and additional lengths of 800 m from Waranga Junction to Nanded (NH-161) (existing Chainage 244.360) and 700 m road from Waranga Junction (NH-161) to Mahagaon (NH-361) (existing Chainage 253.700) in the State of Maharashtra on EPC mode. The bid was submitted in the name of the joint-venture, namely M/s Shri Swami Samarth Engineers Ltd.-M/s L B Kunjir (JV).
3. Learned counsel for the respondent/NHAI who appears on advance notice, at the outset submits that the present writ petition is not maintainable, having been filed by one of the members of the joint-venture. He submits that if the joint-venture was aggrieved by any decision of the respondent, the petition should have been preferred by the joint-venture itself and not by one of the partners solely. We find merit in this submission. The petitioner being only a member of the joint-venture cannot act singly, and would have no locus standi to prefer this petition. It is the joint-venture which is the party dealing with and recognised by the respondent and only the joint-venture can raise a grievance with regard to rejection of its bid. On this short ground, this petition is liable to be rejected. However, we have heard the submissions of learned senior counsel for the petitioner on merits as well, and so we proceed to deal with them as well.
4. The case of the petitioner is that in response to the bid submitted by the joint-venture, the respondent had issued a communication on 05.01.2021 seeking certain clarifications from the joint-venture regarding its bid. The relevant extract of the said letter reads as under:
| NHAI/Tech/MH/PangareWarangaPhata/PATSC/2019/00152 |
| To, |
| M/s M/s Shri Swami Samarth Engineers Limited M/s L.B. Kunjir (JV) |
| 773/3, PradyumnApts, Lano No. 9, |
| Bhandarkar Road, Pune 411004 |
| Tel. No: 020 25679011/99 |
| E-mail: sssengineers@hotmail.com |
| Fax No. 020 25679099 |
| Kind Attention: Mr. Kuldeep Dattatray Patil (Authorized Signatory) |
Sub: 4-Laning of Pangare to WarangaPhata section from Km 134.500 to Km 174.645 (Design Chainage) of NH-161 including Bypasses at Kalamnuri and AkhadaBalapur and additional lengths of 800 m from Waranga Junction to Nanded (NH-161) (existing Chainage 244.360) and 700 m road from Waranga Junction (NH-161) to Mahagaon (NH-361) (existing Chainage 253.700) in the State of Maharashtra on EPC mode Evaluation of Technical Proposals |
| Reg. |
| Ref: Your RFP Application submitted on 07.12.2020 |
| Sir, |
| With reference to your proposals submitted on 07.12.2020 w.r.t. subject project it is to inform that while evaluating the bid, following has been observed: |
S. No. | Head | Appendix/ Clause reference | Clarification Required |
| 4. | Financial Capacity | Annex III | In case of SSSEL |
Compliance with tender conditions, including financial capacity, submission of necessary documents, and establishment of required past experience, is crucial for the acceptance of bids.
A bid submitted by a joint-venture must be maintained by the entity as a whole; failure to comply with tender requirements results in disqualification.
Bidders must comply strictly with tender requirements; misleading information and poor performance can result in disqualification. Judicial review in tender cases should maintain restraint, supportin....
Judicial restraint is paramount in administrative contract disputes, with equal opportunity granted to bidders for document rectification to avoid discrimination.
The court emphasized the mandatory nature of tender conditions and upheld the decisions of the Tender Evaluation Authority and the Appellate Authority, emphasizing the settled legal position that the....
The court upheld that both constituents of a Joint Venture must individually meet qualifying criteria for tender eligibility, emphasizing the limited scope of judicial review in tender processes.
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.
The court upheld the tendering authority's discretion in setting eligibility criteria, emphasizing limited judicial review focused on procedural fairness rather than the merits of the decision.
The court upheld the rejection of the petitioner's technical bid due to failure to meet registration requirements, emphasizing limited grounds for judicial review.
The court upheld that the authority's interpretation of RFP criteria for bid evaluation is final, emphasizing that nomenclature of a project does not solely determine eligibility.
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.