IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
S.R. Brahmbhatt and Alpesh Y. Kogje, JJ.
Rvd Infra Solution Private Limited and Ors. – Appellants
Vs.
Vyara Nagar Palika and Ors. – Respondents
Special Civil Application No. 6878 of 2016
Decided On : 30-06-2016
Tender Process - Disqualification - 2003 (2) GLR 956 - The court held that the subsequent deviation after the tender process would not be permissible. The action of the petitioner in expressing his inability to supply the product of the brand which formed part of the original tender, but curtailed subsequently on the basis of expert opinion, would not be considered as disqualification. The disqualification addressed to the petitioner is quashed and the respondent Nagarpalika is directed to refund the EMD amount deposited by the petitioner.
Fact of the Case:
The petitioner participated in a tender process for electrical installation of LED lights. After the tender process, the specifications were changed, and the petitioner was disqualified for expressing inability to supply the restricted items. The contract was awarded to another bidder.
Finding of the Court:
The court found that the subsequent deviation in the tender process and the disqualification of the petitioner were not justified. The court held that the disqualification and forfeiture of the EMD would not stand, and directed the respondent Nagarpalika to refund the EMD amount deposited by the petitioner.
Issues: The issues revolved around the changes in specifications after the tender process, the disqualification of the petitioner, and the award of the contract to another bidder.
Ratio Decidendi: The court held that the subsequent deviation after the tender process would not be permissible. The action of the petitioner in expressing inability to supply the product of the brand which formed part of the original tender, but curtailed subsequently on the basis of expert opinion, would not be considered as disqualification.
Final Decision: The disqualification addressed to the petitioner is quashed and set aside, and the respondent Nagarpalika is directed to refund the EMD amount deposited by the petitioner.
Alpesh Y. Kogje, J.
1. Rule. Learned advocate Shri Gandhi waives service of notice of Rule on behalf of respondent Nos. 1 and 2. By consent Rule is fixed forthwith.
2. The present petition under Article 226 of the Constitution of India is filed for the following reliefs:
(A) be pleased to issue a writ of mandamus or a writ in the nature of mandamus or any other appropriate writ, order or direction quashing and setting aside the disqualification of the petitioners at Annexure-A to this petition with allowing the petitioners to participate for bidding into the E-tender at Annexure-E to the present petition, in the interest of justice;
(B) Pending admission and final disposal of this petition, Your Lordships will be pleased to stay further execution, operation and implementation of the disqualification at Annexure-A passed by respondent authorities dated 29.02.2016 and the process of E-tender at Annexure-E dated 19.01.2016 to the present petition, in the interest of justice;
(C) Your Lordships will be pleased to direct the respondent No. 1 to refund the EMD amount as per letter at Annexure-G to the present petition, in the interest of justice;
3. The bare facts necessary for disposal of this petition are as under;
3.1 The petitioners had responded to the tender floated by the respondent Nagarpalika for the purpose of electrical installation of LED light under the Model Town Project of Vyara Nagarpalika. The E-tender Notice is dated 09.07.2015 and in response to this notice 10 bidders have submitted their bid with EMD of Rs. 79,350/-.
3.2 It is the case of the petitioners that after the tender process, the Nagarpalika had communicated to him that particular product, which was offered by him, was not of the specification specified by the technical consultant and for that reason he was called upon to give the explanation or willingness to supply the product as opined by the technical expert. As the petitioner was not willing to change the product item of another Company, it appears that the offer of the petitioner failed. Thereafter for the same product another tender was floated on 19.01.2016, wherein also the petitioner bidded alongwith 9 other bidders. However, in the 2nd tender, the items to be supplied were restricted as per the suggestions of the technical expert to the product of three Companies.
3.3 The case of the petitioners is that in the 2nd tender process, the petitioners is not permitted to participate and his EMD is also not returned. It is with this prayer that petitioners have approached this Court.
4. Learned advocate for the petitioner took us to the tender documents wherein the products were specified and the name of 7 Companies' products, which could be supplied, were also specified. The Company, which the petitioner had shown willingness to supply, was also one of the Companies whose name was enlisted in the tender document. It is, therefore, submitted that after the tender process the change contemplated and restricting the product of 3 Companies, of course on the advise of a technical expert, would still amount to the change in essential condition of tender and therefore, the petitioner ought not to be penalized for his inability to supply the restricted items, whereas he has always been willing to supply the items of the Companies which were listed in the 1st tender document.
5. In support of his contention, learned advocate for the petitioners has relied upon a judgment reported in 2003 (2) GLR 956 in case of Elecon Engineering Co. Ltd. & Anr. Vs. Gujarat Mineral Development Corporation Ltd. & Anr., and relying upon paragraph No. 8, he submitted that the subsequent deviation after the tender process would not be permissible.
6. In response to the notice issued by this Court, the Nagarpalika has filed its reply through the in-charge Chief Officer, wherein it is contended that for this very project the respondent Nagarpalika had earlier floated E-tender for installation of LED street light with specification. H
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