IN THE HIGH COURT OF DELHI
Vipin Sanghi, Jasmeet Singh, JJ.
V Tech Sunsystems Pvt. Ltd. - Australian Premium Solar (India) Pvt. Ltd. (Consortium) - Appellant
Versus
Energy Efficiency Services - Respondent
W.P.(C) 5723 of 2021 & CM Appl. 17918 of 2021
Decided On : 31-08-2021
| Table of Content |
|---|
| 1. petitioner seeks to quash communications from eesl. (Para 1) |
| 2. facts about petitioner's identity and business operations. (Para 2 , 3) |
| 3. eesl issued an invitation for tenders. (Para 4 , 5) |
| 4. petitioner submitted a bid that was ultimately rejected. (Para 6 , 7) |
| 5. petitioner sought clarification on bid rejection. (Para 8 , 9 , 10) |
| 6. arguments presented regarding technical qualifications. (Para 11 , 12 , 13) |
| 7. court's observations on disqualification grounds. (Para 14 , 15 , 16) |
| 8. discussion on experience certificates and evaluation criteria. (Para 17 , 18 , 19) |
| 9. interpretation of tender conditions and respondent's obligations. (Para 20 , 21 , 22 , 23 , 24 , 25) |
| 10. conclusion on the validity of experience requirements. (Para 26 , 27 , 28) |
JUDGMENT
1. The petitioner has filed the present petition seeking substantially the following reliefs.
"
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 "Envelope Name: Price Bid";
b. Quash and set aside the impugned e-mail communication dated and 21.05.2021 issued by the Respondent No. 2 to the Petitioner;
c......
d. Stay further process with respect to Open Tender NIT/Bid Doc. No.:- EESL/06/2020-21/KUSUM/WPS/1- 10 HP/Off Grid/202101032 dated 14.01.2021 issued by the Respondent No. 2;
e......
f. Direct the Respondent No. 2 to provide reason(s) for rejection of Technical Qualification bid of the Petitioner and seek clarifications from the Petitioner; if any;
g......"
2. The case of the petitioner is that the petitioner is a Joint Venture (JV) engaged in the business as an EPC agency for executing sub-Station, EHV Line Projects, Civil / Mechanical Works of Generation Projects upto 765 kV class and Mega Watt, Rooftop Scale and On Grid / Off-Grid Projects in India. The Petitioner is also stated to be one of premium solar panel manufacturers in India.
3. The respondent is Energy Efficiency Services Limited (EESL) and is a Super Energy Service Company (ESCO), which helps 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.
5. 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, petitioner submitted its bid vide the E-tendering process, as per the format prescribed by the respondent. As per the requirement, the petitioner submitted on 18.02.2021, its electronic bid.
7. Vide an amendment No. 3 dated 17.02.202; the date of online bid submission was extended till 19.02.2021. On 03.03.2021, the Technical Qualification bids were opened by Respondent No.2 and the petitioner's bid was rejected. Consequently, 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. 35 bidders were qualified in the technical bid, out of a total of 65 bidders.
8. Aggrieved by the said communication, the petitioner on the same date i.e. 20.05.2021 addressed a communication to the respondent EESL to seek clarification of the status of petitioner's bid. Subsequent to the said communication, respondent EESL on 21.05.2021 vide an auto- generated response, informed the p
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.
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.
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....
Tender evaluation must prioritize fairness, and the interpretation of criteria should avoid hyper-technical disqualifications that undermine competitive bidding processes.
The central legal point established in the judgment is the interpretation and application of the work experience criteria as per the tender form, particularly in the context of joint venture partners....
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....
Public tendering processes must adhere strictly to stipulated criteria, ensuring bidders are evaluated fairly without arbitrary disqualifications.
Compliance with tender document requirements, including transportation experience, is crucial and cannot be overlooked based solely on lower financial bid rates.
The interpretation of tender conditions by the respondents is binding, and the petitioner's acceptance of the terms and conditions with full knowledge precludes subsequent challenges.
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