IN THE HIGH COURT OF DELHI
Sanjeev Sachdeva, J.
Lord Krishna Electronic Industries - Appellant
Versus
New Delhi Municipal Council - Respondent
W.P.(C) 7512 of 2019 & CM Appl. 31299 of 2019
Decided On : 20-12-2021
| Table of Content |
|---|
| 1. debarment of the firm under scrutiny (Para 1 , 8) |
| 2. arguments regarding eligibility and debarment (Para 2 , 3 , 4 , 5) |
| 3. details of the tender and bid submission (Para 6 , 10 , 12) |
| 4. court analysis of administrative finding and evidence (Para 13 , 14 , 15 , 16) |
| 5. discussion on the validity of purchase orders (Para 17 , 18 , 19 , 20 , 21 , 22) |
| 6. legal standards for debarment versus bid rejection (Para 23 , 24 , 25 , 33) |
| 7. pre contract integrity pact stipulations (Para 26 , 27 , 28 , 29 , 30) |
| 8. clarifications on compliance and processes (Para 31 , 32 , 34) |
| 9. ruling against the debarment (Para 35) |
| 10. formal conclusion and order of the court (Para 36 , 37 , 38) |
JUDGMENT
Sanjeev Sachdeva, J. (Oral)--Petitioner impugns order dated 09.07.2019 whereby the petitioner firm has been debarred from further tendering in NDMC for a period of three years with immediate effect.
2. Learned counsel for the petitioner submits that the petitioner had furnished certain documents to show fulfilment of the eligibility criterion, however, later it transpired that erroneously petitioner had furnished the documents which did not show him eligible and after the bid submission date a further document was submitted which showed the bid of petitioner as compliant, however, as the document was submitted late, petitioner's bid was rejected.
3. Learned counsel submits that a show cause notice was issued on 05.04.2019 which was duly replied to. He further submits that error was committed by the officers of the petitioner in submitting documents which did not show petitioner eligible, however, none of the documents were forged or fabricated which could have entailed the punishment of debarment. He submits that when this was pointed out instead of withdrawing the show cause notice petitioner has been debarred for a period of three years.
4. Learned counsel appearing for the respondent submits that a vigilance enquiry was conducted into the documents submitted and the enquiry report showed that the documents were false and accordingly the action of debarment has been taken.
5. Further it is contended that petitioner has the remedy of approaching the Independent External Monitors and as such the petition is not maintainable.
6. Respondents had issued an E-procurement tender notice. The eligibility criterion for qualification in the said tender was that the tenderer should have successfully executed three similar supply orders, each of value not less than 40% of the estimated cost put to tender or two similar supply orders of value not less than 60% of the estimated cost or one similar supply order of value not less than 80% of the estimated cost put to tender, during the-last seven years and should submit scanned copies in support of their claim, through e-tendering system.
7. Petitioner had submitted copies of three supply orders along with the bid document. However, the three orders had not been successfully executed. It is the case of the petitioner that when this error was noticed one more supply order was provided which was more than 80% of the estimated cost of the tender which would have shown the petitioner as duly qualified.
8. Petitioner does not impugn the rejection of the bid but is only aggrieved by the debarment of the petitioner for a period of three years.
9. The show cause notice dated 05.04.2019 enlists the grounds for proposed action as under:
"Whereas NDMC team has also enquired about the aforementioned purchase orders and as per there visit at the address of M/s Electra Fusion Technologies, 70, Sukh Vihar, New Delhi-110051, the team met Smt. Krishna Sabharwal, W/o Late. Sh. Joginder Sabharwal, an Ex NDMC Employee, who; informed that she is not aware of the existence and trade of above the said company. The team cited that M/s Electra Fusion Technologies, may be a fictitious company as per version of Smt. Krishna Sabharwal and so supply order dated 07/07/2013 seems false.
The NDMC team also visited the M/s Vivek
Submitting a non-compliant bid does not justify debarment; such action requires substantial evidence of wrongdoing as per the Pre Contract Integrity Pact.
The main legal point established is that the Pre Contract Integrity Pact did not provide for debarment in case of a non-compliant bid, and the Independent External Monitors' review did not apply to t....
The court upheld the debarment of the petitioner for failing to submit a performance guarantee on time, affirming the procedural fairness and adherence to the RFP guidelines.
The main legal point established in the judgment is the requirement for specific reasoning for debarment, the principles of debarment under GFR, 2017 Rule 151, and the balance of interests between th....
The necessity of a valid, particularised and unambiguous show-cause notice before passing an order of blacklisting or debarment.
Login now and unlock free premium legal research
Login to SupremeToday AI and access free legal analysis, AI highlights, and smart tools.
Login
now!
India’s Legal research and Law Firm App, Download now!
Copyright © 2023 Vikas Info Solution Pvt Ltd. All Rights Reserved.