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IN THE HIGH COURT OF DELHI
Sanjeev Sachdeva, J.
Shiv and Sons - Appellant
Versus
Indian Railway Catering and Tourism Corporation Ltd. - Respondent
W.P.(C) 9179 of 2021 & CM Appls. 28584-85 of 2021
Decided On : 06-09-2021




Contractual terms in tender documents are binding when bidders submit offers with full knowledge of those terms, barring subsequent claims of discrimination.

Headnote:(A) Constitution of India - Articles 14 and 19(1)(g) - Quashing of tender conditions - Petitioners sought relaxation in license fee and contended that tender terms for East and West zones are discriminatory compared to North and South zones - Court found no merit as petitioners did not challenge tender conditions prior to bidding and fully understood terms - Differentiation in tender conditions legitimate. (Paras 12, 18, 21, 42)

(B) Tender Conditions - Parties submitting bids must do so with full awareness of conditions; failure to contest conditions prior to bidding precludes future claims of discrimination. (Paras 22, 31)

Facts of the case:
Petitioners challenged various letters demanding full license fees and sought equal treatment with bidders from different zones, alleging discrimination based on tender terms from COVID-19 effects.

Findings of Court:
The Court dismissed the petition, highlighting that petitioners participated in bidding with clear knowledge of the conditions and could not seek later alterations based on perceived unequal treatment.

Issues: Whether the tender conditions for East and West zones were discriminatory compared to North and South zones.

Ratio Decidendi: The court reasoned that without a prior challenge to the tender conditions, petitioners could not claim discriminatory treatment post-bid acceptance.

Result: Petition dismissed.

Table of Content
1. basics of tender submissions and conditions. (Para 1 , 2 , 3 , 4 , 5)
2. claims of discrimination in tender conditions. (Para 6 , 7 , 8 , 9 , 10 , 11 , 12 , 13)
3. analysis of tender conditions in different zones. (Para 14 , 15 , 16 , 17 , 18 , 19)
4. awareness and acceptance of tender terms. (Para 20 , 21 , 22)
5. court's reluctance to interfere with clear tender terms. (Para 23 , 24 , 25 , 26 , 27)
6. decision on maintaining contractual integrity. (Para 28 , 29 , 30)
7. misplaced reliance on precedent cases. (Para 31 , 32 , 33 , 34 , 35)
8. dissimilarity of cases leading to inapplicability of precedents. (Para 36 , 37 , 38 , 39 , 40 , 41)
9. final decision dismissing the petition. (Para 42)

JUDGMENT

Sanjeev Sachdeva, J. (ORAL)--Appellant seeks quashing of letter dated 17.08.2021 whereby respondent has directed the petitioners to abide by the tender conditions. Petitioner further impugns letters dated 29.07.2021, 19.08.2021, 20.08.2021 and 22.08.2021 whereby full license fee has been demanded from the petitioner. Petitioner further seeks relaxation in license fee as well as other benefits granted to the newly allotted catering units by respondent in accordance with Clause 2.3.1 of the tender documents of the North Zone and South Zone.

2. E tenders were floated by the respondent in North, South, East and West zones for maintenance and provision of catering services in/through Jan Ahaars (kitchen unit) and refreshment room for a period of 5 years.

3. Tenders were floated on different dates and bids were submitted by the petitioners for several such units.

4. As per the two petitioners they have been successful in as many as 10 units (petitioner No.1 in 4 and petitioner No.2 in 6 units). It is contended that the tender submission dates were different and different letter of awards have been issued to the petitioners.

5. Petitioners have been found successful in bids submitted for the East and West zone.

6. Petitioners contend that they have been discriminated in so far as East and West zones are concerned. They submit that differential treatment is being given to the tenderers who have submitted bids in the North and South zones.

7. As per the petitioner, clause 2.3.1 of the tender document that talks of payment of license fee for refreshment room in East and West zone is discriminatory and it discriminates against the bidders for the East and West zone and preferential treatment is being given to persons who have submitted their bids for the North and South zones.

8. It is contended by learned senior counsel for the petitioner that petitioners who have submitted their bids for the East and West zones should be accorded the same benefit as has been granted to the bidders of North and South zone.

9. It is contended by learned senior counsel for the petitioner that though the tender conditions of East and West zone on the one side and North and South zone on the other are different, however, the prevailing Covid conditions are identical across the country and as such same benefit should be granted to the bidders who have submitted their bids for the East and West zone as those in the North and South Zone.

10. Learned senior counsel submits that in of North and South zone there is reduction in license fee on pro rata basis till normalisation and till date letter of normalisation has not been issued by the competent authority but there is no such reduction in the East and West Zone.

11. Learned senior counsel submits that even in the matter of award of contract through bidding process there is no waiver of fundamental right and bidders are entitled to enforce their fundamental rights even though they may be contrary to the tender conditions.

12. Reliance is placed on the judgment dated 03.11.2008 of the Division Bench of this Court in National Highways Builders Federation vs. The National Highways Authority of India & Ors in W.P(C) 566/2008 to contend that even though some bidders had participated in t

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