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2021 Supreme(Del) 1707

IN THE HIGH COURT OF DELHI AT NEW DELHI
Vipin Sanghi, Rekha Palli, JJ.
M/s Aptech Limited - Appellant
Versus
Union Of India & Anr. - Respondents
W.P. (C) No. 6922 of 2020; C.M. No. 23745 of 2020, 32214 of 2020; C.M. Appl No. 3320 of 2021
Decided On : 11-02-2021

Advocates appeared:
Arun Bhardwaj, Advocate, S.K. Sahijpal, Advocate, Chetan Sharma, Advocate, Vikram Jetley, Advocate, Amit Gupta, Advocate, Vinay Yadav, Advocate, Akshay Gadeock, Advocate, Sahaj Garg, Advocate, Sandeep Sethi, Advocate, Ajit Warrier, Advocate, Angad Kochhar, Advocate, Malvika Yadav, Advocate

The discretion of the accepting authority in tender matters and the importance of truthful declarations in tender submissions.

Headnote:

Natural Justice - Disqualification from Tender - Form 'B' - [NATURAL JUSTICE] - [TENDER DISQUALIFICATION] - [Jagdish Mandal Vs. State of Orissa & Ors., (2007) 14 SCC 517, Central Coalfields Limited & Anr. Vs. SLL-SML (Joint Venture Consortium) & Anr., (2016) 8 SCC 622] - The court discussed the disqualification of the petitioner from a tender due to a false declaration in Form 'B' and the absence of a show cause notice. It highlighted the principles of natural justice and the discretion of the accepting authority in tender matters.

Fact of the Case:

The petitioner participated in a tender but was disqualified due to a false declaration and blameworthy conduct. The court found the petition to be an abuse of process and dismissed it with costs.

Finding of the Court:

The court found the petition to be an abuse of process and dismissed it with costs.

Issues: Disqualification from tender, Principles of Natural Justice, False declaration in Form 'B'

Ratio Decidendi: The petitioner's disqualification was justified due to a false declaration and blameworthy conduct. The court emphasized the discretion of the accepting authority in tender matters.

Final Decision: The petition was dismissed with costs quantified at Rs.10,00,000/-, payable within 4 weeks.

JUDGMENT

Vipin Sanghi, J. - This writ petition, as originally filed, claimed reliefs (a) to (f). However, on the very first date of hearing i.e. 24.09.2020, the learned senior counsel for the petitioner on instructions made a statement that the reliefs in the present petition be confined to reliefs (a), (b), (e) & (f). The said surviving reliefs read as under:-

    "a) direct Respondent no. 2 to cancel its disqualifications of the Petitioner dated 28.08.2020;

      b) direct Respondent no.2 to allow Petitioner to submit its financial bid in tender no. MSDE 18011/06/CBTTENDER/2020-TTC;

        e) pass such other order orders as this Hon'ble Court may deem fit and proper under the facts and circumstances of the case.

          f) pass an order for the cost of the petition in favour of the Petitioner"

          2. On 15.06.2020, the respondent no.2 i.e. Directorate of General of Training (DGT) issued a tender bearing no. MSDE18011/06/CBTTENDER/2020- TTC for selection of service providers to conduct end-to-end computer based tests under its various schemes. Prior to the issuance of this tender, the respondent no.2 had earlier issued a similar tender on 12.02.2019 which was, however, subsequently withdrawn. Thus, the nature and scope of work envisaged under the tender dated 15.06.2020 was the same as that envisaged under the earlier tender dated 12.02.2019. However, the pre qualification criteria and the Quality & Cost Based Selection (QCBS) ratio was changed in the tender dated 15.06.2020. This NIT-issued on 15.06.2020, required the bidders to, inter alia, submit a declaration with regard to their non-blacklisting in Form 'B' annexed with the NIT. The contents of the said declaration as contained in Form 'B' reads as under:-

            "Form B

            SELF-DECLARATION

            NON-BLACKLISTING

            To,

            Director (TTC),

            Directorate General of Training,

            Ministry of Skill Development & Entrepreneurship,

            1st Floor, Employment Exchange Building, Pusa,

            New Delhi -110 012

            Sir,

            In response to the "REQUEST FOR PROPOSAL (RFP) Selection of Service Provider to conduct of End-to-End Computer Based Test under various schemes (CTS, ATS, CITS etc ) of Directorate General of Training MSDE ", I/We hereby declare that presently our Company/Service provider is having unblemished record related to examination business in India is neither blacklisted nor debarred by any PSU or Any Regulatory Body or Government of India or State Government or any of its agencies for any reasons whatsoever for indulging in corrupt or fraudulent practices or for indulging in unfair trade practices.

            lf this declaration is found to be incorrect then without prejudice to any other action that may be taken, our EMD may be forfeited in full and the tender if any, to the extent accepted may be cancelled.

            Thanking you,

            Yours faithfully,

            Name of the Bidder Authorized Signatory Seal of the Organization" (underlining supplied)

            3. The petitioner, along with the other bidders, submitted its bids in response to the aforesaid NIT. The petitioner also submitted the aforesaid declaration in Form 'B'. The case of the petitioner is that separate financial and technical bids were required to be submitted and the petitioner accordingly submitted both its technical and financial bids. The petitioner claims that in the process of evaluation of technical bids, it was found qualified. Thereafter, without any prior notice or opportunity of hearing to it, the respondents proceeded to disqualify the petitioner and proceeded to award the tender to M/s NSEIT Ltd., who was impleaded as a party respondent in the present petition pursuant to directions passed by this Court on 20.10.2020.

            4. On 20.10.2020, this Court while issuing notice, restrained the respondent nos.1 & 2 from executing the contract in favour of newly added respondent, i.e. respondent no.3/ M/s

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