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IN THE HIGH COURT OF DELHI
Satish Chandra Sharma, Subramonium Prasad, JJ.
Stahl Cranesystems India P. Ltd. - Appellant
Versus
Delhi Metro Rail Corporation Ltd. - Respondent
W.P.(C) 11610 of 2021 & C.M. Nos. 35899 of 2021 & 35900 of 2021 and W.P.(C) 11636 of 2021 & C.M. Nos. 35949 of 2021 & 35950 of 2021
Decided On : 22-09-2022




Judicial review in tendering processes is limited; courts only interfere in cases of mala fides, arbitrariness, or if decisions are perverse.

Headnote:(A) Constitution of India - Articles 226 and 227 - Writ petitions filed challenging the rejection of bids for tenders by Delhi Metro Rail Corporation Ltd. - Petitioner alleged wrongful rejection of bids and sought directions for reconsideration - Petition dismissed based on assessment that both petitioner and successful bidder met tender qualifications. (Paras 1, 5, 12, and 20)

(B) Judicial Review of Administrative Action - Scope of interference in tendering process is limited to cases of mala fides, irrationality, or perverse decision-making. (Paras 12, 15, and 17)

Table of Content
1. details of the writ petitions and tender process (Para 1 , 2 , 3)
2. criteria for judicial review in tender cases (Para 5 , 11)
3. interference allowed only in cases of mala fide acts (Para 6 , 12 , 15 , 16)
4. authority discretion in contractual matters (Para 13 , 17)
5. court's ruling and dismissal of writ petitions (Para 18 , 20)

JUDGMENT

Satish Chandra Sharma, C.J. The instant Writ Petitions have been filed by the Petitioner under Article 226 read with Article 227 of the Constitution of India, being aggrieved by the rejection of its bids submitted against the notices inviting tenders, being Tender No. DMRCMNPSDO4 dated 25.02.2021 (hereinafter, "Tender 1") and Tender No.DMRCMNPAJDX01 dated 06.04.2021 (hereinafter, "Tender 2") (collectively referred to as "Tenders") issued by the Delhi Metro Rail Corporation Ltd. (hereinafter, "Respondent No. 1") for procurement and maintenance of Automatic Synchronized Pit Jack (8-Car Lifting) for Shastri Nagar and Najafgarh Depots and the Ajronda Depot respectively. By means of the instant Writ Petitions, the Petitioner has sought the following reliefs:

i. Issuance of a prerogative Writ of Certiorari or any other writ or order or direction in the nature of certiorari quashing the decision of the Respondent No. 1 rejecting the Petitioner's bids in respect of the Tenders vide email communications dated 10.09.2021 & 16.09.2021 respectively and also to quash the decision of acceptance of the bid of M/s Autolift Vandhana Indian Pvt. Ltd. (hereinafter referred to as "Respondent No.2") and awarding the Tenders in its favour.

ii. Issuance of a Writ of Mandamus or any other writ or order or direction thereby directing Respondent No.1 to consider, evaluate and process the bids received in response to the Tenders in terms of the Tenders or to annul the entire tender process and reinitiate the same in case Respondent No. 2 turns out to be the sole qualified bidder.

iii. Issue a Writ of Mandamus or any other writ or order or direction thereby directing the Respondent No.1 to consider the Petitioner's bid strictly in terms of the Tender.

iv. Passing such further orders as this Hon'ble Court may deem fit and proper in the facts & circumstances of the case.

2. It is stated that the Petitioner is the Indian subsidiary of a German company named M/s PFAFF Verkehrstechnik GmbH which is a global market leader in manufacture, supply and sale of Synchronized Pit Jacks and Mobile Jacks. Respondent No. 2, M/s Autolift Vandhana India Pvt. Ltd. is a Joint Venture company between M/s Autolift GmbH, Austria and M/s Vandhana International Pvt Ltd, New Delhi which is a joint venture partner of Respondent No.2 also involved in the business of manufacturing machinery and equipment as well as the installation and repair of machinery and equipment.

3. The facts leading to the filing of the instant Writ Petitions are as follows:

i. On 25.02.2021, DMRC issued an e-Tender bearing No. DMRCMNPSDO4 inter alia, for supply, erection, testing, integrated commissioning, maintenance of Automatic Synchronized Pit Jack (8-Car Lifting) for Shastri Park and Najafgarh Depot, i.e., Tender 1. The closing date of submission of the bid was 26.03.2021. The closing date was later shifted to 25.05.2021 vide various corrigendum.

ii. On 06.04.2021, Respondent No. 1 issued another E-Tender bearing No. DM RCMN PAJDX01 inter alia, for supply, erection, testing, integrated commissioning, maintenance of Automatic Synchronized Pit Jack (6-Car Lifting) for Ajronda Depot, i.e. Tender 2. The original closing date for the submission of bids was 06.05.2021. The closing date was later shifted to 21.06.2021 vide various corrigendum. Thereafter, vide the Amendment/Clarification No.1, the closing date was finally set as 25.06.2021.

iii. On 12.04.2021, Respondent No.1 further proceeded to issue an Amendment/Clarification No-2 dated 12.04.2021, whereby, inter-alia, Respondent No.1 also amended Clause No.1.0(a) of Table 1.0 of Clause No. 12(A) of t



















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