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A. Y. KOGJE, SAMIR J. DAVE
Gujarat Construction Company – Appellant
Versus
Gujarat Water Supply and Sewerage Board – Respondent
JUDGMENT :
A.Y. Kogje, J.
1. RULE. Learned Advocate Mr. Anuj Trivedi waives service of Rule on behalf of the respondent.
2. This petition under Article 226 of the Constitution of India is filed for issuance of a writ for setting aside communication dated 14.08.2023 and another communication dated 16.09.2023, by which the petitioner was held disqualified and his bid security in the tender proceeding was ordered to be forfeited and the petitioner was blacklisted (debarred from participating).
2.1 It is a case where the petitioner was successful bidder in the tender proceedings issued by the respondent-Gujarat Water Supply and Sewerage Board (“the Board” for short), which is Government of Gujarat undertaking for “Design & Construction of Various Sizes RCC Sumps & RCC ESR, providing, supplying, lowering laying and jointing of DI & PVC pipeline for Rising main / Gravity distribution pipeline network including providing, supplying, erecting and testing Pumping Machineries at Main HW & Sub HW & Village Level Pumping Stations, RCC Road, Staff Quarter, Compound Wall, Electrification Work and other head work development works at Main HW and Sub HW and Operation and Maintenance of all type civil
The court affirmed that submitting false documents in tender processes justifies disqualification and forfeiture of bid security under the relevant tender clauses.
Blacklisting as a penalty requires clear proof of intentional misconduct, and actions taken based on allegations alone may be deemed disproportionate and legally untenable.
Disqualification from tender processes necessitates adherence to procedural fairness; blacklisting without notice is arbitrary and invalid.
The discretion of the accepting authority in tender matters and the importance of truthful declarations in tender submissions.
Judicial review in tendering must focus on lawfulness over soundness; a bidder's failure to disclose critical past conduct can lead to disqualification without notice.
The main legal point established in the judgment is that the conduct of the tendering authority, including the introduction of substantive terms through corrigendum and biased disqualification proces....
A consortium member is jointly liable for the actions of its partners during bidding, and blacklisting imposes severe consequences proportional to misconduct, requiring strict adherence to principles....
The decision to disqualify a bidder from a tender process does not require a reasoned order and should defer to the understanding and appreciation of the tender documents by the employer of the proje....
The submission of a bogus Bank Guarantee by a bidder justifies a two-year ban under tender conditions, as the term 'certificate' includes documents.
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