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IN THE HIGH COURT OF DELHI
Satish Chandra Sharma, Subramonium Prasad, JJ.
Best Buildwell Pvt. Ltd. - Appellant
Versus
New Delhi Municipal Council - Respondent
W.P.(C) 8635 of 2022 & CM Appls. 25965 of 2022, 29116 of 2022
Decided On : 02-09-2022




Judicial restraint is paramount in administrative contract disputes, with equal opportunity granted to bidders for document rectification to avoid discrimination.

Headnote:(A) Relevant laws and sections: Article 226 of the Constitution of India; Tata Cellular v. Union of India principles on judicial review of administrative decisions.

(B) Employment of judicial restraint in contract disputes, courts must avoid substituting their own judgment in administrative matters unless an arbitrary decision is evident.

(C) Discrimination against applicants in regard to rectification of bids without equivalent opportunity.

(D) The Technical Evaluation Committee rejected the bidder's proposal based on non-compliance with document submission requirements. (E) The court concluded that the respondent's refusal to allow the petitioner to correct the bid was unjustified and that the bid should have been subject to judicial review. (F)

Result: Petition allowed; the respondent is mandated to accept a fresh Bank Solvency Certificate and consider the financial bid. (G) Parties involved: Private Company, Municipal Council. (H) Dissenting views note disapproval on how certain bidders were allowed to rectify deficiencies while the Petitioner was not.

Table of Content
1. petition filed to challenge bid rejection. (Para 1 , 2 , 3)
2. details of bid processes and evaluations. (Para 4 , 5 , 6)
3. arguments on unequal treatment of bidders. (Para 8 , 9 , 10 , 11)
4. court's views on judicial restraint in contract evaluations. (Para 12 , 13 , 14 , 15 , 16 , 17)
5. determination of unfair treatment of the petitioner. (Para 22 , 23 , 24)
6. court orders fresh submission of documents. (Para 25 , 26)

JUDGMENT

Subramonium Prasad, J. Being agrieved by the Order/Minutes of Meeting dated 10.03.2022 whereby the Technical Evaluation Committee of the Respondent herein refused to scrutinize and consider technical bid of the Petitioner which had been submitted in response to the Notice Inviting Tender (NIT) No.05/EE (Spl. Project)/AB/2021-2022 issued by the Office of the Executive Engineer (Special Project), Civil Engineering Department of the Respondent, the instant petition has been filed by the Petitioner.

2. The instant petition has been filed with a prayer to issue an appropriate writ, order or direction for setting aside the Order/Minutes of Meeting dated 10.03.2022 by which the Technical Evaluation Committee of the Respondent has refused to consider the bid of the Petitioner. The Petitioner has also prayed for issuance of a writ of mandamus directing the Respondent herein to consider the bid submitted by the Petitioner in response to the said Notice Inviting Tender (NIT).

3. The facts, in brief, leading to the instant petition are that the Petitioner is a Private Limited Company, incorporated in the year 1996 and is engaged in construction activities. On 28.01.2022, the Office of the Executive Engineer (Special Project), Civil Engineering Department of the Respondent issued a Notice Inviting Tender (NIT) No. 05/EE (Spl. Project)/AB/2021-22 inviting online bids for Construction of Commercial Complex at Yashwant Place, Chanakyapuri, New Delhi (Composite Work) at an estimated cost of Rs.119,94,21,774/- with Earnest Money Deposit (EMD) for a sum of Rs.1,29,94,218/- to be completed within 36 (Thirty-Six) Months. It is stated that pursuant to the NIT, the Petitioner submitted its bid within the prescribed time and with all the required documents as mentioned in the NIT.

4. It is stated that on 29.04.2022, when the Petitioner accessed the website of the Respondent, it was revealed that the bid documents of several agencies, who had submitted their bids in response to the abovementioned NIT, had been scrutinized and the Petitioner's bid had been rejected on the ground that it had not submitted the requisite documents.

5. Being aggrieved, the Petitioner approached this Court by filing the instant petition before opening of financial bids. This Court on 30.05.2022 issued notice in the petition and directed that either the Respondent should not proceed to open the financial bids of the bidders which are found technically qualified or, in case, they are so inclined, to open the financial bids of the technically qualified bidders, as well as that of the Petitioner without prejudice to their rights and defences in the petition, and without it creating any right or equity in favour the Petitioner. In case, the respondent chooses to open the financial bids of the technically qualified bidders, and that of the Petitioner, they would keep the financial bid of the Petitioner in a sealed cover after opening the same. The pleading were completed and with the consent of the parties, the petition was heard finally.

6. Mr. Bhuvan Mishra, learned counsel appearing for the Petitioner, draws the attention of this Court towards the Minutes of Meeting dated 10.03.2022 which is the subject matter of the instant petition. The Respondent, by the said bid, has considered the bids of all the bidders and has rejected the bid of the Petitioner herein. The said Minutes of Meeting dated 10.03.2022 reads as under:

    "Name of work: Development of available space at Yashwant Place, Chanakyapuri, New Delhi.

    Sub head: Construc

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