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2022 Supreme(Del) 949

IN THE HIGH COURT OF DELHI AT NEW DELHI
Yashwant Varma, J.
M/s Jbm Ecolife Mobility Private Limited - Appellant
Versus
Union Of India & Anr. - Respondents
Civil Writ Petition No. 6708 of 2022, Civil Miscellaneous Application No. 20563, 20975 of 2022
Decided On : 10-05-2022

Advocates appeared:
Dushyant Dave, Advocate, Rajiv Nayyar, Advocate, Atul Sharma, Advocate, Sanjay Gupta, Advocate, Abhinav Agnihotri, Advocate, Siddarth Mehra, Advocate, Anuj Trivedi, Advocate, Dipan Seth, Advocate, Chetan Sharma, Advocate, Manish Mohan, Advocate, Apoorv Kurup, Advocate, Amit Gupta, Advocate, Devendra Kumar, Advocate, Ojaswa Pathak, Advocate, Rishav Dubey, Advocate, Sahaj Garg, Advocate, Nidhi Mittal, Advocate, Parag Tripathi, Advocate, Tine Abraham, Advocate, Shivani Rawat, Advocate, Mishika Bajpai, Advocate, Jojon Gandha Ray, Advocate, Shourya Bari, Advocate, Dr.Abhishek Manu Singhvi, Advocate, Gopal Jain, Advocate, Nandini Gore, Advocate, Aditi Bhatt, Advocate, Sarthak Gaur, Advocate, Yash Dubey, Advocate, Amit Bhandari, Advocate, Shashank Agarwal, Advocate

Headnote:(A) Guidelines for Debarment - Tendering Process - Natural Justice - Principles of Natural Justice must be followed in decisions affecting individuals' rights - Disqualification of petitioner due to blacklisting of its sister concern, which goes against the principles of fair play. (Paras 11-12, 55-62)

(B) The presence of competing bidders is essential in tender disputes, and their rights must be considered. (Paras 3-4, 19)

Facts of the case:
The petitioner was deemed ineligible for the tender following the debarment of its sister concern, JBM Electric, on allegations of incorrect disclosures pertaining to another scheme, leading to its automatic disqualification.

Findings of Court:
The Court maintained that the petitioner’s exclusion due to its sister concern's debarment was a necessary and inevitable outcome, justified by the provisions of the relevant guidelines.

Issues: The primary issues addressed were the automatic disqualification resulting from the sister concern's debarment and the claim of a violation of the principles of natural justice which arose from the failure to give notice to the petitioner before taking such adverse action.

Ratio Decidendi: The court concluded that the disqualification was warranted under the guidelines governing the tender process and reaffirmed that principles of natural justice, while important, did not necessitate a notice in this instance, as it would have been a mere formality given the clear provisions leading to the automatic debarment.

Result: Writ petition dismissed.

Table of Content
1. right to impleadment and participation in tender process. (Para 1 , 2 , 3)
2. procedures and conditions of tender eligibility. (Para 6 , 7 , 8 , 9)
3. principles of natural justice in debarring entities. (Para 19 , 26 , 39)
4. the necessity of showing prejudice for the violation of natural justice. (Para 59 , 63)
5. conclusion of writ petition dismissal. (Para 64)

JUDGMENT

Yashwant Varma, J. - CM aPPL. 20975/2022 (for impleadment)

1. This application has been moved on behalf of Tata Motors an entity which had also participated in the Grant Challenge Tender for the selection of e-bus operators. The applicant asserts that despite a caveat having been lodged, a copy of the writ petition was neither served nor provided to it. It is further asserted that bearing in mind the challenge which is raised in the instant writ petition and the consequences that would ensue in case the reliefs as claimed were granted, it has a right to be impleaded as a party respondent. Dr. Singhvi, learned senior counsel appearing for Tata Motors, has contended that not only is the applicant a necessary and a proper party, the Court even otherwise has the jurisdiction to permit it to intervene and to address submissions in opposition to the writ petition.

2. The aforesaid submissions are countered by Mr. Dave, learned senior counsel appearing for the petitioner, who submits that undisputedly the contract has not been awarded to the applicant as yet and, therefore, it cannot be construed to be a necessary or proper party. The prayer for impleadment is opposed on the aforesaid grounds.

3. This Court is of the opinion that a party may be permitted to join in proceedings if it be found that its presence is necessary to effectively and completely adjudicate upon the dispute which falls for consideration. Notwithstanding the fact that the contract may not have been awarded to Tata Motors formally, if the tendering process were to be interdicted or the reliefs claimed granted, it would clearly have an impact on the interest of the applicant. It becomes pertinent to note that, although the petitioner asserts that based on the financial bids submitted in the tendering process, it is liable to be declared as L-1 in three out of the five categories, if the act of the respondents in debarring it from participating further were to be upheld, it would leave the applicant alone to be considered as eligible for the award of contract. It is important to bear in mind that in matters relating to tenders and award of contracts, the non-joinder of competing bidders may not be an issue of a mere technicality but would clearly be a matter of substance especially when the grant of reliefs as prayed for may result in the inclusion or exclusion of a particular bidder or impact the consideration of bids that may have been submitted.

4. Bearing in mind the aforesaid facts, the preferred impleadment application is allowed.

W.P.(C) 6708/2022, CM aPPL. 20563/2022 (for Stay)

1. This writ petition has been preferred impugning the communication dated 26 april 2022 in terms of which the petitioner [hereinafter and for the sake of convenience to be referred to as 'JBM Ecolife'], has been held to be ineligible to continue further in the tendering process consequent to M/s JBM Electric Vehicle Pvt. Ltd [to be referred to hereinafter as 'JBM Electric'] having been debarred by the Ministry of Heavy Industries [MHI]. as a result of debarment of JBM Electric, the respondent No.2 acting upon the request and directive of MHI has proceeded to hold the petitioner ineligible to continue further in the 'Grand Challenge Tender' for e-buses. When the writ petition was initially taken up for consideration, the Court had taken note of the submission addressed on behalf of the petitioner that JBM Electric which had been debarred and as a result of which the petitioner had been held to be disqualified, had been never placed on notice of the proposed action of debarment. It was further contended tha

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