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IN THE HIGH COURT OF DELHI
Vipin Sanghi, Jasmeet Singh, JJ.
Sungrace Energy Solutions Pvt. Ltd. - Appellant
Versus
Energy Efficiency Services Ltd. - Respondent
W.P.(C) 5840 of 2021 & CM Appls. 18296-18299 of 2021
Decided On : 14-09-2021




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 adherence to bidding protocols.

Headnote:(A) Writ Jurisdiction - Rejection of Technical Qualification Bid - The petitioner challenged the communications failing to include it in the Price Bid and rejecting its technical bid, invoking principles of transparency in bidding processes. (Paras 1, 8, 21)

(B) Contractual Interpretation - The court emphasized that each provision in tender documents should be given meaning, rejecting the interpretation that would render terms redundant. The 2021 IFB's qualification requirements allowed bidders to consider annual turnover from any three of the last four years. (Paras 16, 26) Fact of the case: The petitioner, a solar industry leader, was excluded from the sealed price bid as its technical bid was deemed non-responsive due to insufficient average annual turnover contrary to the requirements. (Paras 2, 10)

Findings of Court:
The court ruled that the communications rejecting the bid be quashed and ruled in favor of reevaluating the petitioner’s turnover qualifications. (Paras 25, 26)

Issues: Whether the technical bid was unfairly disqualified and the interpretation of tender document provisions regarding annual turnover.

Ratio Decidendi: The court held that the qualification criteria clearly permitted the consideration of turnover from any three of the last four years, thus emphasizing proper adherence to the tender process. (Paras 16, 24)

Result: Writ petition allowed; communication dated 20.05.2021 quashed with directives for recalculation.

Table of Content
1. prayers for quashing and reassessment. (Para 1)
2. (Para 2 , 3 , 4 , 5 , 6 , 7 , 8)
3. court's analysis of qualification requirements. (Para 9 , 10 , 11 , 12 , 13 , 14 , 15 , 16 , 17 , 18 , 19 , 20 , 21 , 22 , 23 , 24)
4. recalculation of average annual turnover required. (Para 25)
5. judgment allows petition and directs compliance. (Para 26)

JUDGMENT

Jasmeet Singh, J. The writ petition has been filed seeking the following substantive prayers:

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) Direct the Respondent No. 2 to re-conduct the entire bidding process in terms of the IFB;

e) 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;

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

g) Pass any such other order/directions as this Hon'ble Court deems fit and proper in the facts and circumstances of the case;"

2. The Petitioner is stated to be one of India's oldest leaders in the solar industry with over 20 years of experience. The Petitioner is into manufacturing of various products including Crystalline Solar Photovoltaic module of multiple ranges and provides varied solutions including Solar Water Pumping.

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, respondent No. 2 invited 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 with the relevant documents vide the E-tendering process, as per the format prescribed by the respondent. The Petitioner submitted their documents on 16.02.2021 and the Respondent issued the Envelope receipt on 16.02.2021 and duly acknowledged the documents.

7. On 03.03.2021, the Technical Qualification bids were opened by Respondent No.2 and the petitioner's bid was rejected, insofar the petitioner was not included in the `Envelope Name: Price Bid'. Vide communication dated 20.05.2021, the petitioner got to know that his technical bid had been rejected.

8. Aggrieved by the said communication, the petitioner on the same date i.e. 20.05.2021 addressed a communication to respondent No. 2 thereby stating, inter-alia, that as a fair practise -all the bids should have been opened to all participating tenderers to ensure no one is duly favoured. Subsequent to the said communication, respondent No.2 on 21.05.2021 vide an auto-generated response, informed the petitioner that the petitioner's bid was found to be non-responsive for technical evaluation. Since no reply was received for the communication dated 20.05.2021, the petitioner filed the aforesaid writ petition.

9. When the matter came up before this Court on 04.06.2021 this Court directed the respondent to file the Counter affidavit (w














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