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IN THE HIGH COURT OF DELHI
Vipin Sanghi, Jasmeet Singh, JJ.
Alpex Solar Pvt. Ltd. - Appellant
Versus
Energy Efficiency Services Limited - Respondent
W.P.(C) 6059 of 2021 & C.M Appl. 19193 of 2021
Decided On : 12-08-2021




Public tendering processes must adhere strictly to stipulated criteria, ensuring bidders are evaluated fairly without arbitrary disqualifications.

Headnote:(A) Energy Efficiency Services Limited (EESL) - Invitation for Bids (IFB) - Average Annual Turnover criteria stipulated for bidders - The petitioner was disqualified for not meeting the turnover criteria while considering only the last three years instead of any three out of the last four, specifically between 2016-17 and 2019-20. The court clarified that the criteria allowed considering any of the four years listed, including 2016-17. (Paras 12-20)

(B) Public Tendering Process - The authority must evaluate bids with diligence and fairness, avoiding arbitrary disqualifications. It is necessary to contextualize the terms of the bid correctly and not disregard criteria set forth. (Paras 20-24)

Facts of the case:
The petitioner, a manufacturer of photovoltaic modules, submitted a bid in response to an IFB issued by Energy Efficiency Services Limited. His bid was rejected based on a miscalculation of Average Annual Turnover criteria, leading to his exclusion from the bidding process. The petitioner was informed of his disqualification on 20.05.2021 and sought clarity on this decision through a writ petition after receiving no response.

Findings of Court:
The court found the rejection was based on a misunderstanding of the criteria requiring average turnover from any three of the last four years, thus it ruled that the rejection of the bid was improper. The court directed the respondent to reassess the petitioner’s bid according to correct criteria and proceed accordingly.

Issues: The main issues include the interpretation of the Average Annual Turnover criteria for bid eligibility and the fairness of the disqualification process undertaken by the respondent.

Ratio Decidendi: The court established that the language of the qualifying requirements permitted any three years from a specific four-year range, thereby entitling the petitioner to take into account the year 2016-17 for the turnover assessment and requiring the respondent to act without arbitrary bias in evaluating bids.

Result: Writ Petition is allowed.

Table of Content
1. writ petition seeking to challenge bid rejection. (Para 1 , 2 , 3 , 4 , 5 , 6 , 7 , 8)
2. respondent's rationale for bid rejection. (Para 10 , 11 , 12)
3. petitioner's average turnover calculations. (Para 14 , 15 , 16)
4. court's interpretation of bidding criteria. (Para 17 , 18 , 19)
5. order to quash rejection and reassess bid. (Para 20)

JUDGMENT

1. The writ petition has been filed seeking the following substantive prayer:

    a. "Quash and set aside the impugned communication dated 20.05.2021 issued by the Respondent No.2 insofar it fails to include the Petitioner in the "Envelop Name: Price Bid";

    b. Quash and set aside the impugned e-mail communication dated 21.05.2021 issued by Respondent No.2 to the Petitioner.

    c. xxxxxxxx

    d. xxxxxxxx

    e. xxxxxxxxx

    f. Direct the Respondent to provide reason(s) for rejection of Technical Qualification bid of the Petitioner;"

2. The Petitioner claims to be a significant global player in the manufacture of highly specialized high power photovoltaic modules and solar systems which are not only world class, but also most cost effective.

3. The Respondent is Energy Efficiency Services Limited (EESL) and is a Super Energy Service Company (ESCO), which enables consumers, industries and governments to effectively manage their energy needs through energy efficient technologies. EESL was founded in 2009, promoted by Ministry of Power, Government of India as a Joint Venture of four reputed public-sector undertakings namely a) NTPC Limited, b) Power Finance Corporation Limited, c) REC Limited and d) POWERGRID Corporation of India Limited.

4. On 14.01.2021, the Respondent issued Detailed Invitation for Bids (IFB) for design, manufacture, supply transport, installation, testing and commissioning of Off Grid Solar Photovoltaic Water Pumping Systems of 1-10 HP in Selected States on PAN India basis, including complete system warranty and its repair and maintenance for 5 Years under MNRE KUSUM scheme Component-B. The e-bids from eligible bidders were invited for the aforesaid work under Single- stage Three-envelope bidding process through E-tendering.

5. Pursuant to the IFB dated 14.01.2021, the Petitioner submitted its Bid with relevant documents vide the E-tendering process, as per the format prescribed by the Respondent. The Respondent issued the Envelope receipt on 17.02.2021 and duly acknowledged the documents.

6. On 03.03.2021, the Technical Qualification bids were opened by the Respondent and there was no prior intimation given to the Petitioner regarding the same. A communication dated 26.03.2021 was addressed by the Respondent to the Petitioner, thereby directing the Petitioner to provide certain clarifications vis-`-vis their bid documents. The aforesaid communication was replied to by the Petitioner, and the requisite documents sought by the Respondent were also provided.

7. Thereafter, the Petitioner's bid was rejected, since the Petitioner was not included in the "Envelope Name: Price Bid". Vide communication dated 20.05.2021, the Petitioner learnt that his technical bid had been rejected.

8. The Petitioner, on 21.05.2021, addressed a communication seeking the basis of which Petitioner's bids was declared "non-responsive for technical evaluation". Since no reply was received, the Petitioner has filed the present writ petition.

9. When the matter came up before this Court on 05.07.2021, the Petitioner requested to amend his writ petition, to incorporate the challenge to the reasons for his disqualification, which had been communicated to him during the pendency of proceedings. This Court allowed the same and directed the Respondent to file their counter affidavit.

10. Pursuant to our orders dated 05.07.2021 and 16.07.21, the Respondent has filed a counter-affidavit and the reason for rejection has been stated in Para 4-7, which reads as under:

    "(4) It is submitted that as per Format 1 Annexure III, the details of Annual Turnover of any 3 of the last four financial y











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