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
| 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) |
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
Tender evaluation must prioritize fairness, and the interpretation of criteria should avoid hyper-technical disqualifications that undermine competitive bidding processes.
Public tendering processes must adhere strictly to stipulated criteria, ensuring bidders are evaluated fairly without arbitrary disqualifications.
The main legal point established in the judgment is that the bidding process must adhere to the specified criteria and that the interpretation of bidding document clauses should be in favor of the bi....
The court established that tender qualification criteria must be interpreted to allow the consideration of any three out of the last four years for average annual turnover, emphasizing clarity and ad....
Interpretation of tender documents in favor of the bidder in case of ambiguity and the importance of adhering to the standards and norms laid down in the tender documents.
A Joint Venture bidder may combine the average annual turnover of its members to meet tender qualification criteria, and ambiguous tender terms cannot result in disqualification.
The court emphasized the importance of complying with tender qualification criteria and upheld the authority of the evaluation committee in assessing bid documents.
The evaluation of tender bids must comply strictly with the qualifications defined in the tender, and any deviation or submission of erroneous documents leads to disqualification.
The main legal point established in the judgment is the requirement for bidders to comply with the bidding documents, including the submission of documents in the specified format. The judgment empha....
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