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IN THE HIGH COURT OF DELHI
Vipin Sanghi, Rekha Palli, JJ.
Siemens Healthcare Private Limited - Appellant
Versus
Directorate General of Health Services, Central Procurement Agency - Respondent
W.P.(C) 3452 of 2020 & CM Appl. 12240 of 2020
Decided On : 19-01-2021




Tender evaluations should not disqualify bidders on minor technicalities that do not affect the integrity of the bid, emphasizing fairness in public procurement.

Headnote:(A) Constitution of India - Articles 14, 21, 226 & 227 - Public procurement - Disqualification of tenderer - Petitioner disqualified for failing to submit a notarized undertaking as required; Court finds alleged non-conformity as a minor irregularity - Fairness in public procurement emphasized; Disqualification quashed. (Paras 1-19)

(B) Tender Process - Tender evaluation must not adopt a hyper-technical approach; Minor non-conformity should not lead to disqualification if it does not affect bid's integrity. (Paras 17-19)

Table of Content
1. petitioner's disqualification in tender process. (Para 1 , 2 , 3)
2. court's observations on disqualification process. (Para 4 , 5 , 8 , 12 , 13 , 15 , 16 , 17 , 18)
3. disqualification grounds debated in writ. (Para 6 , 10 , 11)
4. ruling on validity of petitioner's undertaking. (Para 14)
5. final decision to quash disqualification. (Para 19)

JUDGMENT

Vipin Sanghi, J. (Oral)--The petitioner has preferred the present writ petition seeking the following reliefs:

    "a) Allow present Writ Petition under Article 226 & 227 read with Article 14 & 21 of the Constitution of India and Issue a writ thereby quashing/modification of the impugned order/decision dated 03.04.2020 and 08.04.2020 (Annexure P-8) passed by Respondent No.1 thereby unilaterally disqualifying the Petitioner and not opening the financial bid of Petitioner.

    b) And directions may please be issued to allow the Petitioner's financial bid may kindly be opened and petitioners also be allowed to participate further in the said tender and if bid of petitioner is Lowest, petitioners may be awarded the work.

    c) AND Allow present Writ Petition under Article 226 & 227 read with Article 14 & 21 of the Constitution of India and further it is prayed that the operation of the opening of the financial bid may kindly be stayed till the present writ petition is pending before this Hon'ble Court as the same will automatically come into operation after opening of the technical bid."

2. The case of the petitioners is that the respondents initiated an e-tender process for the purpose of procuring 3 units of 1000mA Digital Flat Panel Fluoroscopy Radiography System and related services by way of a tender document bearing tender ID 2019_DHS_181723_1; Ref no: TN 19_10 1000mA DFRS Covering 1000 MA DIGITAL FLAT PANEL FLUOROSCOPY RADIOGRAPHY SYSTEM.

3. The petitioner no.1, an affiliate company of petitioner no.2, participated in the tender process and its technical bid was found to be in order. However, soon thereafter on 03.04.2020, the petitioner no.1 was informed that it was disqualified from the tender process, without being provided any reasons therefor. The petitioner then made several representations to the respondents requesting that the reasons for its disqualification be disclosed, which went unanswered. Finally on 29.05.2020, the petitioner received an email from the respondents - communicating the reasons for its disqualification. The said email communication reads as follows;

    "Sir

    With reference to information sought by Kumar, Rakesh rakesh.kumar@siemenshealthineers.com via email on dated 12.05.2020, as directed and approved by the Competent Authority the clarification in this matter is as under--

    M/s Siemens Healthineers had participated in Tender ID : 2019_DHS_181723_1 ; Ref no : TN19_10 1000mA DFRS Covering 1000 MA DIGITAL FLAT PANEL FLUOROSCOPY RADIOGRAPHY SYSTEM and PQ Evaluation Committee has disqualified to the said firm due to submission of undertaking which was not verified/notarized as per Tender requirement.

    Then, the file was sent to the Technical Evaluation Committee and file was received back with the note of the committee, declaring all the bidders technically compliant.

    But, since the M/s Siemens Healthineers was already disqualified at the PQ stage, therefore, permission to open the price bid of the PQ and TQ qualified bidder was taken from Competent Authority.

    Regards

    Prabhat Kumar"

(emphasis supplied)

4. Upon receiving the aforesaid reasons, the petitioner preferred the present writ petition which was taken up by the Court on 10.06.2020. While issuing notice in the petition on that date, this Court directed the respondents to refrain from taking any further steps to finalise the L1 Bidder in respect of the tender in question, till the next date. That interim order has been extended thereafter and continues to operate. The respondents have filed their counter-affidavit and their written submissions along with several decisions, on which reliance

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