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2021 Supreme(Del) 2459

IN THE HIGH COURT OF DELHI AT NEW DELHI
VIPIN SANGHI, JASMEET SINGH, JJ.
V Tech Sunsystems Pvt. Ltd. - Australian Premium Solar (India) Pvt. Ltd. (Consortium) – Appellant
Versus
Energy Efficiency Services Limited – Respondent
W.P.(C) 5723 of 2021 & CM APPL. 17918 of 2021
Decided on : 31-08-2021

Advocates:
Advocate Appeared:
For the Appellant : Mr. Rohit Rathi, Adv.
For the Respondent: Mr. Samdarshi Sanjay, Mr. Prakash Jha, Mr. Kumar Saurabh, AGM (SCM), Mr. Nikhil Bhandari AM (SCM)

Headnote:

Tender Bid - Quashing of Communication - Off Grid Solar Photovoltaic Water Pumping Systems - MNRE KUSUM scheme Component–B - [Detailed Invitation for Bids (IFB) - Design, manufacture, supply transport, installation, testing and commissioning of Off Grid Solar Photovoltaic Water Pumping Systems of 1-10 HP in Selected States on PAN India basis, including complete system warranty and its repair and maintenance for 5 Years under MNRE KUSUM scheme Component–B] - [Summary of Acts and Sections: The court discussed the Qualifying Requirement (QR) under Annexure II to the Tender Document, specifically the Note under the heading 'For Manufacture of Solar Pump or SPV modules or Solar Pump Controller using indigenous technology' and its interpretation. The court also referred to the Industrial Promotion & Investment Corporation of Orissa Ltd. v. New India Assurance Co. Ltd. and Anr. (2016) 15 SCC 315 and Bank of India and Anr. v. K. Mohandas and Ors (2009) 5 SCC 313 to establish the principle of interpretation against the party who prepared the terms in the contractual scheme.]

Fact of the Case:

The petitioner sought to quash the communication rejecting their technical bid for Off Grid Solar Photovoltaic Water Pumping Systems under MNRE KUSUM scheme Component–B. The respondent disqualified the petitioner based on the cumulative work experience and participation in multiple bids.

Finding of the Court:

The court found that the petitioner did not violate the condition prohibiting the same bidder from participating in more than one bid and had the requisite work experience. The disqualification of the petitioner was deemed illegal.

Issues: The issues revolved around the disqualification of the petitioner based on cumulative work experience and participation in multiple bids.

Ratio Decidendi: The court interpreted the Qualifying Requirement (QR) under Annexure II to the Tender Document and applied the principle of interpretation against the party who prepared the terms in the contractual scheme to rule in favor of the petitioner.

Final Decision: The Writ Petition was allowed, quashing the disqualification of the petitioner and directing the respondent to proceed with the petitioner's bid in accordance with the procedure prescribed for tender processing.

JUDGMENT :

1. The petitioner has filed the present petition seeking substantially the following reliefs.

    “a. Quash and set aside the impugned communication dated 20.05.2021 issued by the Respondent No. 2 insofar it fails to include the Petitioner in the “Envelope Name: Price Bid”;

b. Quash and set aside the impugned e-mail communication dated and 21.05.2021 issued by the Respondent No. 2 to the Petitioner;

c……

d. Stay further process with respect to Open Tender NIT/Bid Doc. No.:-EESL/06/2020-21/KUSUM/WPS/1- 10 HP/Off Grid/202101032 dated 14.01.2021 issued by the Respondent No. 2;

e…...

f. Direct the Respondent No. 2 to provide reason(s) for rejection of Technical Qualification bid of the Petitioner and seek clarifications from the Petitioner; if any;

g……”

2. The case of the petitioner is that the petitioner is a Joint Venture (JV) engaged in the business as an EPC agency for executing sub-Station, EHV Line Projects, Civil/Mechanical Works of Generation Projects upto 765 kV class and Mega Watt, Rooftop Scale and On Grid/Off-Grid Projects in India. The Petitioner is also stated to be one of premium solar panel manufacturers in India.

3. The respondent is Energy Efficiency Services Limited (EESL) and is a Super Energy Service Company (ESCO), which helps consumers, industries and governments to effectively manage their energy needs through energy efficient technologies. EESL was founded in 2009, promoted by Ministry of Power, Government of India as a Joint Venture of four reputed public-sector undertakings, namely, a) NTPC Limited, b) Power Finance Corporation Limited, c) REC Limited, and d) POWERGRID Corporation of India Limited.

4. On 14.01.2021, the respondent issued Detailed Invitation for Bids (IFB) for design, manufacture, supply transport, installation, testing and commissioning of Off Grid Solar Photovoltaic Water Pumping Systems of 1-10 HP in Selected States on PAN India basis, including complete system warranty and its repair and maintenance for 5 Years under MNRE KUSUM scheme Component–B.

5. Respondent invited e-bids from eligible bidders for the aforesaid work under Single-stage Three-envelope bidding process through E-tendering.

6. Pursuant to the IFB dated 14.01.2021, petitioner submitted its bid vide the E-tendering process, as per the format prescribed by the respondent. As per the requirement, the petitioner submitted on 18.02.2021, its electronic bid.

7. Vide an amendment No. 3 dated 17.02.202; the date of online bid submission was extended till 19.02.2021. On 03.03.2021, the Technical Qualification bids were opened by Respondent No.2 and the petitioner’s bid was rejected. Consequently, the petitioner was not included in the “Envelope Name: Price Bid”. Vide communication dated 20.05.2021, the petitioner learnt that his technical bid had been rejected. 35 bidders were qualified in the technical bid, out of a total of 65 bidders.

8. Aggrieved by the said communication, the petitioner on the same date i.e. 20.05.2021 addressed a communication to the respondent EESL to seek clarification of the status of petitioner’s bid. Subsequent to the said communication, respondent EESL on 21.05.2021 vide an auto-generated response, informed the petitioner that the petitioner’s bid was found to be non-responsive upon technical evaluation.

9. The petitioner on. 21.05.2021 addressed another communication seeking the basis on which petitioner’s bids was declared non-responsive. Since no reply was received, the petitioner has filed the present writ petition.

10. When the matter came up on 02.06.2021 by this Court, this Court directed the respondent EESL to disclose the reasons for holding the petitioner’s technical bid to be non-responsive. This Court further directed that the tender in question be not finalised till the next date of hearing.

11. Pursuant to our order dated 02.06.2021, the respondent EESL has filed a counter-affidavit, and the r

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