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IN THE HIGH COURT OF DELHI
Vipin Sanghi, Jasmeet Singh, JJ.
Gautam Solar Pvt. Ltd. - Appellant
Versus
Energy Efficiency Services Limited - Respondent
W.P.(C) 8076 of 2021
Decided On : 12-08-2021




Tender evaluation must prioritize fairness, and the interpretation of criteria should avoid hyper-technical disqualifications that undermine competitive bidding processes.

Headnote:(A) Public Procurement - Tender Documents - Principles of Bid Evaluation - The Respondent's rejection of the Petitioner's bid was based on not meeting the Average Annual Turnover criteria, incorrectly calculating based on the last three years instead of the specified four years. 'The mere use of the words Annual Turnover Data for the last 3 years…is neither here nor there' shows ambiguity in the tender’s language (Para 18).

(B) It was ruled that the Respondent must apply reasonable diligence in assessing bids and not disqualify bidders based on hyper-technicalities (Para 22).

(C) The court reiterated the principle that the intention behind clauses in tender documents should be interpreted to avoid leading to arbitrary rejection of valid bids (Para 24).

(D) The wording in the tender documents was found to allow use of turnover data from any three of four specified years (Para 36). (E) Quashing of the impugned communications and a directive for recalculation of Average Annual Turnover was made (Para 39).

Facts of the case:
The bid from the Petitioner was rejected on grounds concerning the Average Annual Turnover requirement, claimed to have been misinterpreted by the Respondent.

Findings of Court:
The Court emphasized fair examination of bids, finding the Respondent acted arbitrarily in disqualifying the Petitioner despite compliance.

Issues: The main issues centered on correct interpretation of tender requirements and the propriety of the disqualification process employed by the Respondent.

Ratio Decidendi: The Court held that tender evaluators must exercise care to foster competition and not reject bids on minor or technical discrepancies, affording clarity in interpretation where ambiguity exists in tender documents.

Result: Writ Petition allowed; communications quashed.

Table of Content
1. petitioner seeks to quash bid rejection. (Para 1 , 1)
2. petitioner is in solar installation; respondent is an esco. (Para 2 , 3)
3. respondent issued an ifb for solar systems. (Para 4 , 5 , 6)
4. reasons for bid rejection provided in detail. (Para 11 , 12)
5. misinterpretation of turnover data leads to disqualification. (Para 15 , 16)
6. court interprets ambiguity favorably towards the petitioner. (Para 18 , 19)
7. court emphasizes diligence in bid evaluation. (Para 20 , 21 , 22)
8. typographic error in undertaking does not disqualify. (Para 28 , 31)
9. ruling on appropriate turnover years for bid evaluation. (Para 37)
10. writ petition is allowed, and communications quashed. (Para 39)

JUDGMENT (Oral)

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

    "a. Quash and set aside the impugned communication dated 20.07.2021 issued by the Respondent to the Petitioner insofar it states that the bid became non-responsive owing to Not meeting Qualification requirements Av. Annual Turnover criteria (considering last three financial years and on the basis of audited balance sheets provided by you from for all 4 years)

    b. Direct the Respondent to include the Petitioner in the list of successful bidders.

    c. Quash and set aside the impugned communication dated 20.05.2021 issued by the Respondent insofar it fails to include the Petitioner in the `Envelope Name: Price Bid`."

2. The Petitioner claims to be a company dealing in Solar PV installation and services and other allied solar-technology related services.

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

    d) POWERGRID Corporation of India Limited.

4. On 14.01.2021, the Respondent issued a 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.

5. The Respondent invited e-bids from eligible bidders for the aforesaid work under Single-stage Three-envelope bidding process through E- tendering.

6. Pursuant to the IFB dated 14.01.2021, the Petitioner submitted its bid with the relevant documents vide the E-tendering process, as per the format prescribed by the Respondent.

7. On 03.03.2021, the Technical Qualification bids were opened by the Respondent and the Petitioner's bid was rejected, inasmuch as, the Petitioner was not included in the "Envelope Name: Price Bid". Vide communication dated 20.05.2021, the Petitioner learnt that its Technical Bid had been rejected.

8. A communication dated 20.07.2021 was issued by the Respondent to the Petitioner stating that the bid of the Petitioner was held `non-responsive` owing to the reason that "Not meeting Qualification requirements Av. Annual Turnover Criteria (considering last three financial years and on the basis of audited balance sheets provided by you from all 4 years)..

9. The Petitioner, on 22.07.2021, replied to the said communication of the Respondent, thereby explaining in detail, how the Petitioner was compliant with the aforesaid clause. However no response was received to the said later. Aggrieved by the reasons provided by the Respondent for the rejection of their bid, the Petitioner has filed the present writ petition.

10. When the matter came up before this Court on 09.08.2021, this Court directed the respondent to file their counter-affidavit.

11. Pursuant to our order of 09.08.2021, the Respondent ha











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