Failure to submit essential documents required for a JV bid justifies disqualification.

JUDGMENT

Jasmeet Singh, J. - The present petition has been filed seeking quashing of communication dated 16.11.2021 issued by respondent No. 1, whereby the petitioner has been communicated its disqualification in respect of RFP tender No. CDaCP/Safety City/MSI/2020/313, for selection of Master System Integrator (MSI) for Implementation, Operation and Maintenance of Surveillance System under Safe City Project of Delhi Police.

2. The case of the petitioner in a nutshell is that the petitioner- HFCL advance Systems Private Limited (hereinafter called 'HaSPL') is a Joint Venture (JV), with M/s HFCL Limited holding 90% shares in the Petitioner company, and M/s Polixel Security Systems Private Limited, holding 10% share. M/s HFCL Limited and M/s Polixel Security Systems Private Limited are both incorporated companies under the Companies act, 1956/2013.

3. Respondent, C-DaC is a Scientific Society of the Ministry of Electronics and Information Technology, Government of India, registered under Societies Registration act, 1860, with administration and management of the Society vesting in the Governing Council of the Society, chaired by Union Minister of Communication and IT.

4. On 18.12.2020, the respondent floated RFP/ tender No. CDaCP/Safety City/MSI/2020/313, for selection of Master System Integrator (MSI) for Implementation, Operation and Maintenance of Surveillance System under Safe City Project of Delhi Police.

5. On 30.06.2021, Pre-Bid Corrigendum was issued by the respondent, wherein, the definition of Joint Venture was given for the first time. as per the petitioner, the petitioner was entitled to bid for this tender/ RFP as a Joint Venture.

6. The petitioner company was originally incorporated on 23.02.2015 under the Companies act, 1956/2013, as a wholly owned subsidiary of M/s HFCL Limited. For the purpose of convenience, HFCL advance Systems Private Limited for the period from 23.02.2015 till 13thaugust 2021-when HFCL limited transferred 10% equity to Polixel Security System, is referred to as 'HaSPL Pre', and not the Petitioner company.

7. Towards making petitioner a Joint Venture on 13.08.2021, M/s HFCL Limited divested its 10% shareholding in HaSPL Pre, and transferred 10,000 equity shares of face value of Rs. 10/- each- comprising 10% of the paid-up equity share capital of the HaSPL Pre, to M/s Polixel Security Systems Private Limited. as per the petitioner, with the transfer of equity shares on 13.08.2021, the status of HaSPL Pre- changed to a Joint Venture (herein after referred to as 'JV') within the requirement of the RFP document, and within the meaning of Section 2(6)(b) of the Companies act, 2013.

8. In compliance of Form-13 of the RFP, on 17.08.2021, the petitioner ensured execution of JV documents/undertakings/agreement by the members of JV, duly signed by the petitioner, M/s HFCL Limited and M/s Polixel Security Systems Private Limited.

9. On 20.08.2021, the petitioner submitted its bid as a JV. On 02.10.2021, the Technical Evaluation Committee of respondent raised certain Pre-Qualification queries, which were responded to by the petitioner on 07.10.2021.

10. On 12.10.2021, the respondent raised further queries, which were again responded to on 13.10.2021, along with clarificatory documents. Further queries were raised by the respondent on 12.10.2021, which were also responded by the petitioner on 18.10.2021.The petitioner sent further communications to the respondent on 26.10.2021 and 27.10.2021.

11. Eventually, the petitioner was disqualified by the Respondent on the ground that the petitioner did not meet various terms of RFP on 16.11.2021.

12. Consequently, the Petitioner has preferred this petition being aggrieved by its technical disqualification. When the matter came up before this Court on 02.12.2021, while issuing notice, we directed filing of the counter-affidavit within a week, and also directed that 'though the processing of the bids received may be continued in the meantime, the same shall not be fin