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IN THE HIGH COURT OF DELHI
Vipin Sanghi, Rekha Palli, JJ.
Aptech Limited - Appellant
Versus
Union of India - Respondent
W.P.(C) 6922 of 2020 & CM No. 23745 of 2020 (Stay), CM No. 32214 of 2020 & CM Appl. 3320 of 2021
Decided On : 11-02-2021




Judicial review in tendering must focus on lawfulness over soundness; a bidder's failure to disclose critical past conduct can lead to disqualification without notice.

Headnote:(A) Tendering process - Principles of Natural Justice - The petitioner sought cancellation of disqualification by the Directorate of General of Training on grounds of breach of natural justice following disqualification without notice after a previous blacklisting. The court noted that tender submitted included a false declaration of non-blacklisting, thus justifying the disqualification. (Paras 6, 10, 20)

(B) Judicial Review - The court stated that interference in tender decisions is constrained unless shown to be mala fide or irrational. The soundness of a decision is secondary to its lawfulness; breaches of procedural fairness must demonstrate substantial prejudice to warrant intervention. (Paras 18, 20, 22)

Facts of the case:
The petitioner was disqualified from a tender process after being found to have made a false declaration regarding not being blacklisted, which was based on its prior conduct in an examination-related scandal. The petitioner claimed it was initially qualified during technical evaluation.

Findings of Court:
The court found no merit in the petition, emphasizing the necessity for transparent conduct in public examinations and confirming the validity of disqualification based on the false declaration.

Issues: The primary issues were whether disqualification constituted a violation of natural justice and if the petitioner was entitled to notice before disqualification.

Ratio Decidendi: The court ruled that the absence of a show cause notice did not violate principles of natural justice as the declaration of non-blacklisting was proven to be false, thereby justifying the disqualification.

Result: Petition dismissed with costs of Rs.10,00,000/-.

Table of Content
1. petitioner's claims limited to specific reliefs. (Para 1 , 2)
2. detailing of tender process and prior disqualifications. (Para 3 , 4)
3. claims of disqualification without due process. (Para 6 , 10 , 11)
4. context of petitioner's blacklisting and its implications. (Para 7 , 8)
5. insufficient basis for contesting disqualification. (Para 16 , 17 , 18 , 20)
6. maintaining integrity in public examinations. (Para 19 , 21)
7. dismissal of petition with costs. (Para 22 , 23)

JUDGMENT

Vipin Sanghi, J. (Oral)--This writ petition, as originally filed, claimed reliefs (a) to (f). However, on the very first date of hearing i.e. 24.09.2020, the learned senior counsel for the petitioner on instructions made a statement that the reliefs in the present petition be confined to reliefs (a), (b), (e) & (f). The said surviving reliefs read as under:

    "a) direct Respondent no. 2 to cancel its disqualifications of the Petitioner dated 28.08.2020;

    b) direct Respondent no.2 to allow Petitioner to submit its financial bid in tender no.MSDE 18011/06/CBT-TENDER/2020-TTC;

    e) pass such other order orders as this Hon'ble Court may deem fit and proper under the facts and circumstances of the case.

    f) pass an order for the cost of the petition in favour of the Petitioner"

2. On 15.06.2020, the respondent no.2 i.e. Directorate of General of Training (DGT) issued a tender bearing no. MSDE-18011/06/CBTTENDER/2020-TTC for selection of service providers to conduct end-to-end computer based tests under its various schemes. Prior to the issuance of this tender, the respondent no.2 had earlier issued a similar tender on 12.02.2019 which was, however, subsequently withdrawn. Thus, the nature and scope of work envisaged under the tender dated 15.06.2020 was the same as that envisaged under the earlier tender dated 12.02.2019. However, the pre-qualification criteria and the Quality & Cost Based Selection (QCBS) ratio was changed in the tender dated 15.06.2020. This NIT-issued on 15.06.2020, required the bidders to, inter alia, submit a declaration with regard to their non-blacklisting in Form `B' annexed with the NIT. The contents of the said declaration as contained in Form `B' reads as under:

    "Form B

    SELF-DECLARATION

    NON-BLACKLISTING

    To,

    Director (TTC),

    Directorate General of Training,

    Ministry of Skill Development & Entrepreneurship,

    1st Floor, Employment Exchange Building, Pusa,

    New Delhi-110 012

    Sir,

    In response to the "REQUEST FOR PROPOSAL (RFP) Selection of Service Provider to conduct of End-to-End Computer Based Test under various schemes (CTS, ATS, CITS etc) of Directorate General of Training MSDE", I/We hereby declare that presently our Company/Service provider is having unblemished record related to examination business in India is neither blacklisted nor debarred by any PSU or Any Regulatory Body or Government of India or State Government or any of its agencies for any reasons whatsoever for indulging in corrupt or fraudulent practices or for indulging in unfair trade practices.

    If this declaration is found to be incorrect then without prejudice to any other action that may be taken, our EMD may be forfeited in full and the tender if any, to the extent accepted may be cancelled.

    Thanking you,

    Yours faithfully,

    Name of the Bidder Authorized Signatory Seal of the Organization" (underlining supplied)

3. The petitioner, along with the other bidders, submitted its bids in response to the aforesaid NIT. The petitioner also submitted the aforesaid declaration in Form `B'. The case of the petitioner is that separate financial and technical bids were required to be submitted and the petitioner accordingly submitted both its technical and financial bids. The petitioner claims that in the process of evaluation of technical bids, it was found qualified. Thereafter, without any prior notice or opportunity of hearing to it, the respondents proceeded to disqualify the petitioner and proceeded to award the tender to M/s NSEIT Ltd., who was impleaded as a

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