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DELHI HIGH COURT
VIPIN SANGHI, REKHA PALLI
Kushal Suraksha and Allied Services Pvt. Ltd. – Appellant
Versus
Delhi Development Authority – Respondent
| Table of Content |
|---|
| 1. tender bids and disqualification details (Para 1 , 2 , 3) |
| 2. arguments regarding minimum wage discrepancies (Para 5 , 6 , 7) |
| 3. understanding the validity of bid cancellations (Para 8 , 9) |
| 4. court analysis of tender language and ambiguity (Para 10 , 11) |
| 5. final orders on tender and debarment (Para 12) |
JUDGMENT
Rekha Palli, J. (Oral)--The present decision disposes of two petitions, one filed by M/s Kushal Suraksha and Allied Services Pvt. Ltd, who was initially the lowest bidder (L-1) but was subsequently disqualified for reasons that are detailed hereinafter, and the other filed by M/s Stallion Security who was the second lowest bidder (L-2) in the tender issued by the respondent no.1 on 10.06.2020 for the purpose of engaging security personnel on an annual basis to guard the portion of Yamuna river plains falling between the Wazirabad Barrage to ITO barrage. Both the petitioners are essentially aggrieved by the letter dated 16.07.2020 which rejected the bid of M/s Kushal Suraksha (the petitioner in WP(C) 4397/2020), and recalled the entire tender for de-novo issuance thereof.
2. Before dealing with the grievances of the parties in relation to this order, the fact
The court ruled that disqualification of a bidder without opportunity to respond violates principles of natural justice, and tender ambiguity necessitates careful clarifications to avoid unfair resul....
Ambiguity in tender terms and conditions led to the cancellation of the tender and disqualification of the lowest bidder. The court emphasized the importance of clear and unambiguous tender condition....
Judicial review in tender matters is limited to cases of arbitrariness or fundamental legal errors; ambiguity in tender specifications justifies cancellation.
Tender conditions mandating compliance with minimum wage must strictly be followed; non-compliance voids bid eligibility.
Tender disqualification must be reasonable and justified; arbitrary rejections violate principles of fair competition.
The decision-making process of the authority can be subject to judicial review, and interference is warranted if the decision is found to be palpably arbitrary and unreasonable.
Public authorities cannot disqualify tender participants based on undeclared criteria absent from the tender notification. Doing so violates principles of fairness and non-arbitrariness, as administr....
The court ruled that bids below the justified rate are non-responsive, emphasizing judicial respect for expert evaluations in tendering processes.
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