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IN THE HIGH COURT OF DELHI
Vipin Sanghi, Jasmeet Singh, JJ.
Resoursys Telecom - Appellant
Versus
Navodaya Vidyalaya Samiti - Respondent
W.P.(C) 6676 of 2021 & CM Appls. 21018 of 2021 and 23797-798 of 2021
Decided On : 27-09-2021




Tablets and smartphones are classified under similar categories for public tender eligibility, and tender criteria must be clear and non-arbitrary.

Headnote:(A) Tendering Process - Award of Contract - Writ Petition questioned the rejection of bid based on ambiguous criteria regarding classification of products - Rules for evaluating tender criteria must be clear and should not be arbitrarily changed to restrict competition. (Paras 11, 12, 30, 47)

(B) Jurisdiction of Courts - Courts should show restraint in tender matters unless actions are arbitrary or irrational. (Paras 16, 47)

(C) Classification of Goods - Tablets and Smartphones are considered similar category products when determining eligibility in public tenders. (Paras 26, 34)

Facts of the case:
The petitioner, a partnership firm, applied for a tender to supply tablets but had its bid rejected by the respondent organization based on vague technical specifications regarding past performance in similar product categories.

Findings of Court:
The court found the rejection arbitrary and directed the tendering authority to reconsider the petitioner’s bid based on the classification of tablets and smartphones as similar products.

Issues: Whether the rejection of the petitioner's bid was justified and whether the classification of products was done correctly by the respondent.

Ratio Decidendi: The court ruled that the terms of the tender were not ambiguous; thus, the tendering authority could not exclude similar category products to restrict competition in public tenders.

Result: Writ petition allowed; rejection of bid quashed.

Table of Content
1. factual background of the writ petition (Para 1 , 2 , 3 , 4 , 5)
2. petitioner's bid submission details (Para 6 , 7 , 8 , 9 , 10)
3. petitioner's argument on category similarity (Para 11 , 12 , 13)
4. respondent's argument on product categorization (Para 14 , 15 , 16)
5. court's observations on tender process and jurisdiction (Para 17 , 18 , 19 , 20 , 21)
6. respondent's position on jurisdiction and authority (Para 22 , 23 , 24 , 25)
7. judicial interpretation of tender terms (Para 26 , 27 , 28 , 29 , 30)
8. interpretation of 'similar category products' (Para 31 , 32 , 33 , 34)
9. court's assessment of rationality in decision-making (Para 35 , 36 , 37 , 38 , 39)
10. principles of tender interpretation (Para 40 , 41 , 42 , 43 , 44)
11. final conclusion and order of the court (Para 45 , 46 , 47 , 48)

JUDGMENT

1. The present writ petition has been filed to seek the quashing of invitation to tender dated 12.02.2021 bearing No. GEM/2021/b/1032762 issued by Respondent No.1 i.e. Navodaya Vidyalaya Samiti on the portal of Government E-Market Place (GEM), and in particular, letter dated 29.06.2021 issued to the Petitioner.

2. Briefly stated the facts as per petitioner giving rise to filing of the present writ petition are as under.

3. The Petitioner is a partnership firm dealing in trading and supplying of information and technological goods. Petitioner No.2 is one of the partners of Petitioner No.1.

4. The Respondent No.1 Navodaya Vidyalaya Samiti (NVS) is an autonomous organisation under the Ministry of Education/Ministry of Human Resource Development, Department of School, Education and Literacy, Govt. of India. The Chairman of Respondent No.1 is the Minister of Education. The Respondent No.1 functions through the Executive Committee, under the Chairmanship of the Minister of Education and the Executive Head of the Administration is the Commissioner.

5. Respondent No.1 issued invitation to tender for supply of 68,940 tablets on the online trading portal of the Government of India, i.e. GEM2021/b/1032762. The essential Qualification Criteria with regard to past experience contained in the Notice Inviting Tender (NIT) - with which we are concerned, is that the bidder should have the stipulated past experience of dealing in "same or similar category products". The bid document was subsequently revised, and there were certain corrigendum and amendments that were issued by Respondent No.1 from time to time, changing certain technical and general conditions of the tender. However, the same are not relevant for the purpose of adjudicating the present writ petition.

6. The Petitioner being desirous of participating in the tender process offered its product i.e. tablet, which is being manufactured by an Indian company, namely, M/s Lava International Ltd., on 27.04.2021. The Petitioner was duly authorised by the manufacturer to participate in the tender process.

7. One of the conditions for qualification in the tender, was of having supplied at least 60% of the required tendered quantity/units in one financial year, in the preceding three years from the date of tender, to any Government or Public Sector Undertakings (PSUs) of "same or similar category products" as that of tablet. It was also required that 35 % of the tender quantity units must have been executed as a single order in one financial year. Since the Petitioner had supplied much more than the desired quantity under "same or similar category product" as that of a tablet, it submitted its bid. The petitioner claimed its past experience on the basis of the supplies made by it of mobile phones and laptops to various Governments and Public Sector Undertakings (PSU's).

8. Respondent No.1 opened the technical bid on 08.05.2021 for evaluating the bids submitted by various bidders. On 25.06.2021, the Petitioner was informed that its bid had been rejected - the reason being `technical specification mismatch'. The communication simply stated that the bidder did not me








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