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2024 Supreme(Del) 456

IN THE HIGH COURT OF DELHI AT NEW DELHI
Manmohan, Manmeet Pritam Singh Arora, JJ.
Din Bandhu Dass - Appellant
Versus
Indian Institute of Technology Delhi - Respondent
W.P.(C) 2634 of 2024, CM APPL. 10864 of 2024, CM APPL. 10865 of 2024 & CM APPL. 10866 of 2024.
Decided On : 22-02-2024

Advocates appeared:
Mr. Narender Hooda, Senior Advocate with Mr. Rishabh Raj Jain, Mr. Shaurya Lamba and Mr. Kaushal Kapoor, Advocates, for the Petitioner.
Mr. T. Singhdev, Mr. Aabhaas Sukhramani, Mr. Abhijit Chakravarty, Mr. Tanishq Srivastava, Mr. Bhanu Gulati, Ms. Anum Hussain, Ms. Ramanpreet Kaur, Advocates, for the Respondent.

Headnote:

Tender Criteria - Eligibility Criteria - Clause 4, Clause 6 - The judgment discusses the challenge to the eligibility criteria of a tender for the establishment, operation, maintenance, and comprehensive management of a commercial establishment at IIT Delhi. The court considered the increase in the financial eligibility criteria and the reasons provided by the Respondent Institute for setting the pre-qualification criteria at Clause Nos. 4 and 6. The court emphasized the need for a clear case of arbitrariness and unreasonableness to interfere with tender conditions and highlighted the importance of exercising restraint in tender matters. The judgment also cited relevant legal principles from Tata Motors Limited v. Brihan Mumbai Electric Supply & Transport Undertaking (BEST) & Others, emphasizing the need for courts to refrain from unnecessary interference in commercial matters unless there is a clear case of arbitrariness or bias.

Fact of the Case:

The writ petition challenges the eligibility criteria of a tender for the establishment, operation, maintenance, and comprehensive management of a commercial establishment at IIT Delhi, specifically Clause Nos. 4 and 6.

Finding of the Court:

The court found that the Respondent Institute had reasonably explained the factors that led to setting the pre-qualification criteria at Clause Nos. 4 and 6, and that the Petitioner's argument of arbitrariness was not substantiated. The court also noted the delay in filing the petition and dismissed it on the grounds of delay and laches.

Issues: The issues revolved around the arbitrariness of the financial eligibility criteria and the delay in filing the petition.

Ratio Decidendi: The court emphasized the need for a clear case of arbitrariness and unreasonableness to interfere with tender conditions and highlighted the importance of exercising restraint in tender matters. The judgment also cited relevant legal principles from Tata Motors Limited v. Brihan Mumbai Electric Supply & Transport Undertaking (BEST) & Others, emphasizing the need for courts to refrain from unnecessary interference in commercial matters unless there is a clear case of arbitrariness or bias.

Final Decision: The court dismissed the writ petition and pending application, upholding the Respondent Institute's justification and rationale for raising the financial qualifying criteria of a bidder to an annual average turnover of Rs. 12 Crores in the preceding three financial years.

JUDGMENT

Manmohan, A.C.J. (Oral)

CM APPLs. 10865-66/2024 (for exemption)

Allowed, subject to all just exceptions.

Accordingly, the present applications stand disposed of.

W.P.(C) 2634/2024 & CM APPL. 10864/2024

1. Present writ petition has been filed under Article 226 of the Constitution of India seeking a direction to remove or modify the eligibility Clause nos. 4 and 6 as the tender evaluation criteria in the notice inviting tender (`impugned NIT') bearing No. IITD/ESTATE/(SP-4418)/2024, dated 23rd January, 2024.

2. The Respondent Institute has issued the said impugned NIT for the establishment, operation, maintenance, and comprehensive management of a commercial establishment (Eating Outlet) at Ground Floor of Synergy Building at IIT Delhi.

2.1. The tender document provides for `Initial Eligibility Criteria', under which the bidder should have an annual average turnover of Rs. 12 Crores per annum for the last three financial years, as stipulated under Clause No. 4, and the bidder should enclose a financial solvency certificate issued by a banker for an amount not less than Rs. one Crore, as stipulated under Clause No. 6.

2.2. Aggrieved by the introduction of the aforementioned Clause Nos. 4 and 6 of the Initial Eligibility Criteria for participation in the impugned NIT, the Petitioner has filed the present petition.

3. Learned senior counsel appearing for the Petitioner states that the Respondent Institute vide notice inviting tender bearing no. IITD/ISTA(SP- 1691)/2018 (`earlier NIT'), dated 1st June, 2018 had invited tenders for running the staff canteen at IIT Delhi. He states that the eligibility criteria for participating in the earlier NIT was that the bidder should have minimum financial turnover of Rs. 25 Lakhs per annum each during the last three consecutive years and the bidder should produce a solvency certificate from scheduled bank for an amount not less than Rs. 25 lakhs.

3.1. He states that the Respondent Institute has introduced a new eligibility criterion for running the same canteen in the premises of IIT Delhi, thereby increasing the requirement of annual average turnover to be Rs. 12 Crores. He states that the substantial increase in requirement of `annual average turnover' from Rs. 25 Lakhs to Rs. 12 Crores is arbitrary, irrational, whimsical, and vitiated by bias. He states that to his knowledge, the annual turn-over of the canteen is approximately Rs. 2 crores. He states that in view of this, the criteria of Rs. 12 crores is irrational. He states that the substantial change in the financial eligibility criteria of the impugned NIT has been introduced with a malafide intention to allot the said tender to a specific party and oust the parties like Petitioner from participating in the tender bidding process. In support of his arguments, learned Senior Counsel for the Petitioner has relied upon the judgment passed by Coordinate Bench of this Court in Dhingra Construction Co. v. Municipal Corporation of Delhi & Others, 2005(79) DRJ 383 (DB) (Para 27) to contend that the pre-qualification criteria should not be made stringent so as to arbitrarily restrict the entry of bidders.

4. In reply, learned counsel for the Respondent Institute states that there cannot be any interference by this Court in the present matter, as it pertains to tender issuance process. He states that the Court must refrain from interfering with tender conditions unless the Petitioner can satisfy the principles laid down by the Supreme Court in Tata Cellular v. Union of India, (1994) 6 SCC 651.

4.1. He states that the facts, which weighed with the Respondents while settling the pre-qualification criteria, were based on the feedback received from the teaching staff, non-teaching staff and the students who are the only users of the canteen. He states that no member of the general pubic has access to this canteen and, therefore, the tender conditions have been set down to meet the requirement of the users. He states that the size of the canteen is ap

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