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IN THE HIGH COURT OF DELHI
Satish Chandra Sharma, Subramonium Prasad, JJ.
Ram Charan Bansal Construction Pvt. Ltd. - Appellant
Versus
Delhi Jal Board - Respondent
W.P.(C) 15632 of 2022 & CM Appls. 48658-59 of 2022
Decided On : 05-12-2022




Tendering authorities' interpretations of eligibility criteria are upheld unless proven perverse; specific clauses direct applicability based on project value.

Headnote:(A) Constitution of India - Article 19(1)(g) - Tender awarding process - Petitioner claimed that successful bidder did not meet financial eligibility criteria under Clause B4, thus making the award arbitrary and unconstitutional - Court emphasized deference to petitioner's understanding of tender documents and rejected claims of financial disqualification since the Clause B4 was found not applicable based on the project's estimated contract value being less than 25 Crores - Following principles established in previous case laws reinforcing respect for the authority of tendering bodies. (Paras 4, 8, 12)

(B) Judicial Review - Role of courts in evaluating tender processes - Courts should not act as appellate authorities over interpretations made by tender authors unless the interpretation is perverse. (Paras 10, 12)

Facts of the case:
Petitioner challenged the acceptance of the tender bid from a competing contractor on the grounds of lacking bidding capacity. The relevant response from the tendering authority clarified that conditions for bidding capacity did not apply due to the project's contract value.

Findings of Court:
The court found that the successful bidder's interpretation of tender documentation was correct and did not warrant interference.

Issues: Whether the accepted bid violated eligibility criteria and the appropriateness of the court's review of tender decisions.

Ratio Decidendi: The court ruled that the financial eligibility criterion specifically indicated that it was not applicable given the value of the tender, thereby upholding the decision of the tendering authority.

Result: Writ Petition dismissed.

Table of Content
1. challenging award of tender due to bidding capacity issue. (Para 1 , 2)
2. petitioner's arguments regarding bidding capacity compliance. (Para 3 , 4)
3. court's review of letters concerning bidding capacity. (Para 5 , 6)
4. interpretation of tender clauses and applicability. (Para 7 , 8)
5. principles of interpreting tender documents. (Para 9 , 10)
6. court’s dismissal of the writ petition based on findings. (Para 11 , 12)
7. final dismissal of writ petition. (Para 13)

JUDGMENT

1. The Petitioner herein who was unsuccessful in getting the tender for cleaning Gravity Duct No.1 from Kilokari SPS (Filter house) upto Okhla STP, which had been invited by the Respondent No.1 herein vide press notice inviting tender No. 19/EE (Civil) Plant SDW S/E/2022-23, has approached this Court challenging the award of the tender to Respondent No.4 herein on the ground that Respondent No.4 has not uploaded its bidding capacity.

2. Shorn of details, the facts leading to the instant Writ Petition are as follows:

a) It is stated that the Petitioner is a contracting company having expertise in cleaning drains/sewer lines/sumps/gravity duct by machines. It is stated that the Respondent No.3 herein (Executive Engineer (Civil) Plant SDW S/E, Delhi Jal Board) on instructions of Respondent No.2 herein (Additional Chief Engineer (P)-III, Delhi Jal Board) and in the name of Respondent No.1 herein, vide press notice inviting tender No. 19/EE (Civil) Plant SDW S/E/2022-23, invited a tender for cleaning Gravity Duct No.1 from Kilokari SPS (Filter house) upto Okhla.

b) A pre bid meeting was scheduled to be held on 23.09.2022 which could not be conducted due to technical reasons and the same was re-scheduled for 26.09.2022. The last date of submission of tender was extended from 06.10.2022 to 10.10.2020.

c) It is stated that six bids were received by the Respondent No.1, including the bid of the Petitioner herein and the Respondent No.4 herein. It is stated that all the six bids were found to be technically compliant.

d) The Financial bids were, thereafter, opened and the bid of Respondent was accepted as it was the lowest. It is stated in the Writ Petition that in order to maintain transparency, the selected bidders could view and download each other's documents after the acceptance of the bid. It is stated that when the Petitioner herein downloaded the documents of the Respondent No.4, who was the successful bidder, it was found that the Respondent No.4 did not qualify/meet the financial eligibility criteria, i.e. bidding capacity, which could not be ignored in view of the condition No.36 of the Specifications and Special Terms & Conditions for the work in question. The Petitioner relies on condition No.36 which states that the registered contractors of the Respondent No.1 herein shall be allowed to participate up to their tendering limits without checking their financial and technical credentials except bidding capacity. The Petitioner has, thereafter, filed the instant Writ Petition with the following prayer(s):

    "A. Declare the decision of the Respondent No. 1, 2 & 3 for accepting the bid of the Respondent No.4 for tender ref. no. 19/EE (Civil) Plant SDW S/E/2022-23 being arbitrary, illegal, void; and unconstitutional under Article 19(1)(g) of the Constitution of Indian;

    B. Issue a Writ in the nature of Mandamus or any other appropriate Writ or direction directing the Respondent No. 1, 2 & 3 to withdraw the decision of accepting the bid of the Respondent No. 4 for tender ref. no. 19/EE (Civil) Plant SDW S/E/2022-23;

    C. Direct the Respondent No. 1, 2 & 3 to issue formal letter cancelling/withdrawing the decision of accepting the bid of the Respondent No. 4 with respect to the tender ref. no. 19/EE (Civil) Plant SDW S/E/2022-23;

    D. direct the Respondent No. 1, 2 & 3 to not to issue any work order with respect to tender ref. no. 19/EE (Civil) Plant SDW S/E/2022-23 issued in favour the Respondent No. 4 i.e., M/S Raj Engg. Company;

    E. Direct the Re

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