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2019 Supreme(Guj) 845

IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
Bela M. Trivedi, A.C. Rao, JJ.
Voltas Limited - Appellants
Vs.
Gujarat Metro Rail Corporation Limited - Respondent
R/Special Civil Application No. 9786 of 2019 and R/Special Civil Application No. 9911 of 2019
Decided On : 03-10-2019

Advocates Appeared:
For the Appellant : Mihir Joshi, Jay Kansara for Wadiaghandy and Co., Kunal Nanavati and Nisarg Desai for Nanavati Associates
For the Respondents:Kamal Trivedi, Senior Advocate, Satyam Y. Chhaya and Vinay Bairagra

Headnote:

Petitions arising out of the same subject tender were ordered to be heard together vide the order, and therefore the common order is being passed – Decisions contained in the selfsame letter issued by the respondent Corporation have been challenged, whereby the petitioners were informed that in terms of Clause 27.8 of the BDS, Section II, Part I of the biding document, the Initial Filters cum Qualification Requirement (IFcQR) bid submitted by them were evaluated and were found to be substantially non-responsive to the Eligibility and Qualification Criteria requirements prescribed in the bidding documents – Held, Both the petitioners had failed to comply with the essential conditions with regard to specific requirements of the concerned Clauses of the tender document mainly Clause 2.4.2 (a) of Section III of the tender document, it could not be said that the decision taken by the respondent Corporation that the bids of the petitioners were substantially non-responsive, was arbitrary or capricious – It may be noted that the compliance of the essential conditions is a must, especially when the respondent Corporation is bound by the guidelines issued by the JICA which is funding the majority part of the said project and when the decision regarding evaluation is also subject to the review and concurrence by the JICA – No substance in both the Petitions – Petition Dismissed (Paras 17, 18)

JUDGMENT :

Bela M. Trivedi, J.

1. Both the petitions arising out of the same subject tender were ordered to be heard together vide the order dated 06.06.2019, and therefore the common order is being passed. In both the petitions, the decisions contained in the selfsame letter dated 15.05.2019 issued by the respondent Corporation have been challenged, whereby the petitioners were informed that in terms of Clause 27.8 of the BDS, Section II, Part I of the biding document, the Initial Filters cum Qualification Requirement (IFcQR) bid submitted by them were evaluated and were found to be substantially non-responsive to the Eligibility and Qualification Criteria requirements prescribed in the bidding documents.

2. As transpiring from the records, for implementing Metro Rail Project in and between Gandhinagar and Ahmedabad, the Government of Gujarat had passed the General Resolution dated 07.05.2009, pursuant to which a special purpose vehicle came to be formed under the name of "Metro Link Express from Gandhinagar to Ahmedabad (MEGA) Co. Ltd", the respondent herein. The respondent Corporation was formed by the Government of Gujarat and Government of India for implementing the said Metro Rail Project Phase-I for providing transportation services to general public at affordable rates and for reducing the traffic congestion on roads. On the basis of the exchange of notes between the Government of Japan and the Government of India dated 27.11.2015, a Japanese loan came to be extended with a view to promote economic stabilization and development of efforts of Government of India. Pursuant to the same, a loan agreement dated 04.03.2016 was signed between Japan International Cooperation Agency (hereinafter referred to as "JICA") and President of India to fund a major part of the project, whereby JICA had agreed to extend the financial assistance equivalent to Japanese Yen 82,434 Million for the implementation of the Ahmedabad Metro Rail Project- Phase-I. Under Section III of the loan agreement, multi stage references to JICA have been prescribed from initiation to finalization of the procurement process which again is subjected to Multi Stage Reviews, concurrence and final approval of JICA.

3. The respondent Corporation published a tender bearing No. MEGA/UG/E&M-01 for "Design, Manufacture, Supply, Installation, Testing and Commissioning of (A) Electrical and Mechanical (E & M) Including Hydraulics, Fire Safety Systems, UPS & DG Sets (B) Environmental Control System (ECS) and Building Management System -BMS (C) Tunnel Ventilation System (TVS) and TVS-SCADA Works, for Underground Stations, Intermediate Vent Shaft and Associated Tunnels of East- West Corridor of Ahmedabad Metro Rail Project Phase-I" (hereinafter referred to as "the subject tender") on 18.04.2018. The bidding was to be conducted in accordance with the applicable guidelines for procurement under Japanese ODA Loans and JICA's "Single Stage Three Envelope" bidding procedure. The said procedure comprised of three envelopes to be submitted simultaneously by the bidders i.e. (i) Initial Filter Cum Qualification Requirement Bid (ii) Technical Bid and (iii) Price Bid. The last date for submission of the bids was 18.07.2018, which was subsequently extended to 21.08.2018. The petitioners i.e. Voltas Limited of Special Civil Application No. 9786 of 2019 and M/s. Blue Star Limited of Special Civil Application No. 9911 of 2019 amongst other bidders had submitted their bids for the subject tender.

4. In case of the petitioner Voltas Limited, the respondent had sought certain clarifications with regard to the role played by the said petitioner in the projects successfully completed by it in the past, and specifically if the petitioner had worked upon such projects as a prime contractor. Certain correspondences had ensued between the petitioner and the respondent Corporation in that regard. The petitioner had also extended the bank guarantee period from time to time as asked for by the responden

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