IN THE HIGH COURT OF DELHI AT NEW DELHI
Satish Chandra Sharma, Sanjeev Narula, JJ.
Shreejikrupa Project Limited – Appellant
Versus
Telecommunication Consultants India Limited & Ors. – Respondents
W.P.(C) 9238 of 2023 & CM Appl. 35174 of 2023, CM Appl. 35175 of 2023
Decided On : 26-07-2023
The Court held that the tendering authority based upon the certificate issued by Respondent No.2 has arrived at a conclusion that the Respondent No.2 has constructed a 3 star rated green building, and, therefore, Respondent No.2 has rightly been declared as techno commercially qualified by Respondent No.1. The Court further held that the scope of interference in a tender process is quite limited and the courts should exercise a lot of restraint while exercising their powers of judicial review in contractual or commercial matters.
Fact of the Case:
The Petitioner, a company, incorporated under the Companies Act, 1956, filed a writ petition for issuance of an appropriate writ, order or direction, declaring the Respondent No.2 as technically unqualified bidder and to quash the order dated 24.06.2023 issued by Respondent No.1 to the extent that it declares Respondent No.2 as Techno Commercially Qualified. The facts of the case reveal that the Respondent No.1 Telecommunications Consultants India Ltd. (TCIL) is a Government of India undertaking established in the year 1978 under the administrative control of the Department of Telecommunications (DOT), Ministry of Communications, Government of India. The Respondent No.1, on 28.04.2023, issued a Notice Inviting Tender (NIT) for construction of Tura Medical College Phase-II for extension of Existing Tura Civil Hospital 230 beds at Tura, Meghalaya on EPC Mode-III. The total estimate cost of the same is Rs.136.10 crores. The Petitioner raised a query with respect to minimum 3 star rated green building and a subsequent corrigendum was issued on 25.05.2023. The Petitioner's contention is that the Respondent No. 2 who has also submitted its tender, has not submitted the certificate, duly certified by Green Rating for Integrated Habitat Assessment (GRIHA) which is the body which certifies that a building is a 3 star rated green building and, therefore, as the Respondent No. 2 has not submitted a certificate certified by GRIHA, the Respondent No.2 should not have been declared as techno commercially qualified.
Finding of the Court:
The Court held that the tendering authority based upon the certificate issued by Respondent No.2 has arrived at a conclusion that the Respondent No.2 has constructed a 3 star rated green building, and, therefore, Respondent No.2 has rightly been declared as techno commercially qualified by Respondent No.1. The Court further held that the scope of interference in a tender process is quite limited and the courts should exercise a lot of restraint while exercising their powers of judicial review in contractual or commercial matters.
Issues: Whether the Respondent No.2 was rightly declared as techno commercially qualified by Respondent No.1.
Ratio Decidendi: The Court held that the tendering authority based upon the certificate issued by Respondent No.2 has arrived at a conclusion that the Respondent No.2 has constructed a 3 star rated green building, and, therefore, Respondent No.2 has rightly been declared as techno commercially qualified by Respondent No.1. The Court further held that the scope of interference in a tender process is quite limited and the courts should exercise a lot of restraint while exercising their powers of judicial review in contractual or commercial matters.
Final Decision: The Court dismissed the petition.
JUDGMENT
Satish Chandra Sharma, C.J. The Petitioner before this Court, a company, incorporated under the Companies Act, 1956 has filed the present petition for issuance of an appropriate writ, order or direction, declaring the Respondent No.2 as technically unqualified bidder and to quash the order dated 24.06.2023 issued by Respondent No.1 to the extent that it declares Respondent No.2 as Techno Commercially Qualified.
2. The facts of the case reveal that the Respondent No.1 Telecommunications Consultants India Ltd. (TCIL) is a Government of India undertaking established in the year 1978 under the administrative control of the Department of Telecommunications (DOT), Ministry of Communications, Government of India. The Respondent No.1, on 28.04.2023, issued a Notice Inviting Tender (NIT) for construction of Tura Medical College Phase-II for extension of Existing Tura Civil Hospital 230 beds at Tura, Meghalaya on EPC Mode-III. The total estimate cost of the same is Rs.136.10 crores.
3. The Petitioner, Respondent No.2 and two others also submitted their response to the NIT and a corrigendum was also issued on 19.05.2023. The Petitioner raised a query with respect to minimum 3 star rated green building and a subsequent corrigendum was issued on 25.05.2023. The Petitioner's contention is that the Respondent No. 2 who has also submitted its tender, has not submitted the certificate, duly certified by Green Rating for Integrated Habitat Assessment (GRIHA) which is the body which certifies that a building is a 3 star rated green building and, therefore, as the Respondent No. 2 has not submitted a certificate certified by GRIHA, the Respondent No.2 should not have been declared as techno commercially qualified.
4. The Respondent No. 1, vide letter dated 24.06.2023 has declared Respondent No. 2 as techno commercially qualified and the grievance of the Petitioner is that even though the Respondent No.2 does not have any GRIHA certificate, it has been declared as techno commercially qualified and in those circumstances the Petitioner has preferred the present Writ Petition with the following prayers:
"a.) Issue an appropriate writ, order, or direction in the nature of any other writ and quash the order dated 24.06.2023 issued by respondent no.1 to the extent it declares respondent no.2 as "Techno Commercially Qualified".
b.) Pass such other and further orders as this Hon'ble court may consider fit, proper, and necessary in the interest of justice. "
5. Learned Senior counsel for the Petitioner has drawn the attention of this Court towards the eligibility conditions as prescribed in the NIT. The same is reproduced as under:
"Memorandum
"16. GRIHA Rating - GRIHA Minimum 3 Star rating compliance to be done".
Section-3: Scope of Work
2. "GRIHA - As the building is to be constructed as per GRIHA norms and intended for minimum 3 Star rating, the contractor has to comply all the specific requirement at their own cost The contractor should extend their all-out support to GRIHA Team as and where required for achieving the desired GRIHA rating. The contractor has to get the project registered with GRIHA on behalf of TCIL and complete the all the compliances of as per GRIHA requirement for achieving minimum 3 Star Rating. It is the responsibility of contractor to get the final GRIHA certification for the project".
Section-4 Special Conditions of Contract (SCC)
"1.23. This Project is to be designed & executed for achieving min. GRIHA 3 star rating Certifications as per latest version stipulated by GRIHA (Green Rating for Integrated Habitat Assessment) Council. Accordingly, the contractor is required to adhere to the various environment friendly and GRIHA compliance aspects of construction as well as documentation with respect to use of Materials, Manpower, Machinery and other relevant mandatory requirements. Nothing extra shall be payable over and above the quoted rates as per the financial bid to comply with such requirements."
6. Learned Senior counse
AI
Judicial interference in the matter of tenders and contracts is limited and the court should exercise restraint in interfering with the administrative decision-making process.
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District Collector is not empowered to consider the aspect of alteration of any route or alignment except to remove difficulties faced by the licensee. As a result of this, even the request of altern....
The interpretation of eligibility criteria in public tenders is best determined by the tendering authority, and judicial review is limited to preventing arbitrariness or mala fides.
Judicial review in public procurement is limited; courts refrain from interference unless clear evidence of arbitrariness or bad faith is established.
Judicial review in tenders limited to mala fides, arbitrariness, irrationality impacting public interest; courts defer to authority's interpretation of eligibility unless perverse.
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