IN THE HIGH COURT OF DELHI AT NEW DELHI
Satish Chandra Sharma, Sanjeev Narula, JJ.
Mageba Bridge Products Private Limited & Anr. - Appellants
Versus
Rites Limited & Ors. - Respondents
W.P.(C) 8400 of 2023 and CM Appls. 32044-32045 of 2023
Decided On : 21-09-2023
Tender Rejection - Make in India Policy - Clause 12.14 of the Subject Tender - June 2020 Order - 2021 O.M.
Fact of the Case:
The Petitioner participated in a tender and emerged as the L1 bidder. However, the tender was awarded to Respondent No. 6. The Petitioner alleged bias, favoritism, and mala fide in the awarding of the tender.
Finding of the Court:
The Court held that the decision to award the tender to Respondent No. 6 was in strict compliance with the terms and conditions of the Subject Tender and the relevant applicable policies of the Government of India. The Court dismissed the petition, stating that the tendering authority should verify the local content provided for the Project as per the terms and conditions of the Subject Tender.
Issues: Allegations of bias, favoritism, and mala fide in the awarding of the tender.
Ratio Decidendi: The Court emphasized that the decision to award the tender must comply strictly with the terms of the tender document and that the tendering authority is the best interpreter of the same. The Court also highlighted the limited scope of interference by way of judicial review in commercial matters.
Final Decision: The petition was dismissed, and the tendering authority was directed to verify the local content provided for the Project as per the terms and conditions of the Subject Tender.
JUDGMENT
Satish Chandra Sharma, C.J.
1. Aggrieved by the rejection of its bid in respect of a tender bearing Tender No. RITES/RCED/RI/SHMS/2019/02/R1 issued in October 2022 by RITES Limited ("Respondent No. 1" or "RITES") ("Subject Tender") in respect of `Engagement of system integrator for supply, installation, testing, commissioning and maintenance of monitoring system for Structural Health Monitoring System (SHMS) for Bogibeel Rail cum Road Bridge across the Brahmaputra river near Dibrugarh, Assam, India' ("the Project"), the Petitioner has filed the instant writ petition praying for the following reliefs:
"A. A Writ and/or Writs in the nature of Certiorari do issue directing the Respondent authorities, their men, servants, agents, officers and subordinates to forthwith certify and transmit/produce and/or cause production of all papers, documents, files and records connected with or related to the present dispute between the parties so that the same may be perused by this Hon'ble Court and conscionable justice can be rendered;
B. A Writ and/or Writs and/or Order and/or Orders and/or Direction or Directions in the nature of Mandamus do issue commanding the Respondent authorities to reject and/or cancel the technical bid of the Respondent no. 6 and declare the Petitioner no. 1, which is the L1 bidder to be the successful bidder in place of the Respondent no. 6 in terms of the Tender no. RITES/RCED/RI/SHMS/2019/02/R1 of October, 2022 and to allot the Letter of Award in favour of the Petitioner herein in accordance with the law;
C. A Writ and/or Writs and/or Order and/or Orders and/or Direction or Directions in the nature of Mandamus do issue commanding the Respondent authorities to revoke, rescind, recall and/or withdraw the decision of awarding the Letter of Award/contract under the present Tender to the Respondent no. 6 on 10th April, 2023 by rejecting both the technical bid and the financial bid submitted by the Respondent no. 6 herein;
D. A Writ and/or Writs and/or Order and/or Orders and/or Direction or Directions in the nature of Prohibition do issue prohibiting the Respondent Authorities to act upon the decision to issue the Letter of Award In favour of the Respondent no. 6 herein till adjudication of the instant petition in any manner;
E. Rule NISI in terms of prayers above;
F. Order restraining the Respondent no. 1 and/or their men, servants, agents, assigns and/or anyone claiming through or under them or acting on their behalf from issuing and/or entering into any formal work order/contract/agreement with the private Respondent no. 6 under the present Tender or taking any steps/further steps and/or causing any steps/further steps to be taken in pursuance of the Letter of Award issued to the Respondent no. 6, till the disposal of the present writ petition;
G. Ad interim orders in terms of prayers above;
H. Appropriate order as to costs; 1. Such further or other order or orders be passed and/or direction or directions be given as to this Hon'ble Court may deem fit and proper."
2. It is stated in the writ petition that Petitioner No. 1 is a leading manufacturer and supplier of bridge components such as bridge bearings, expansion joints, seismic devices, and structural health monitoring systems. Petitioner No. 2 is a citizen of India and employed by Petitioner No. 1. The tender issuing authority i.e., RITES is a public sector enterprise under the Ministry of Railways ("Respondent No. 5"). Respondent No. 2 is the Executive Director (Building Projects), RITES and Respondent Nos. 3 & 4 are independent external monitors for the Subject Tender. Respondent No. 6 is a private Respondent who has participated in the Subject Tender and is stated have been awarded the LoA in respect of the Subject Tender. Respondent No. 7 Is the Northeast Frontier Railway ("NFR") and Respondent No. 8 is the Ministry of Commerce and Industry.
3. The facts of the case reveal that Petitioner No. 1 participated in the Subject Tender and its bid successfully met th
Afcons Infrastructure Limited v. Nagpur Metro Rail Corporation
Tata Cellular v. Union of India
Jagdish Mandal v. State of Orissa
Dwarkadas Marfatia and Sons v. Board of Trustees of the Port of Bombay
Central Coalfields Ltd. v. SLL-SML (Joint Venture Consortium)
Afcons Infrastructure Ltd. v. Nagpur Metro Rail Corpn. Ltd.
Agmatel India (P) Ltd. v. Resoursys Telecom
M.P. Power Management Co. Ltd. v. Sky Power Southeast Solar India (P) Ltd.
Adherence to the 'Make In India' policy and the impact of violating it on the tender process.
Judicial review in tendering processes is limited; courts only interfere in cases of mala fides, arbitrariness, or if decisions are perverse.
Judicial review of tendering decisions is limited to assessing legality, with courts refraining from substituting the tender authority's decisions unless in cases of illegality or manifest arbitrarin....
Judicial review in tender matters is limited to assessing arbitrariness, irrationality, or mala fides; decisions should reflect fair competition and not accommodate late submissions of corrected bids....
The court upheld the authority's discretion in evaluating tender bids, emphasizing the need for compliance with mandatory conditions and the absence of arbitrariness in disqualification decisions.
Login now and unlock free premium legal research
Login to SupremeToday AI and access free legal analysis, AI highlights, and smart tools.
Login
now!
India’s Legal research and Law Firm App, Download now!
Copyright © 2023 Vikas Info Solution Pvt Ltd. All Rights Reserved.