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2023 Supreme(Gau) 445

IN THE GAUHATI HIGH COURT (HIGH COURT OF ASSAM, NAGALAND, MIZORAM AND ARUNACHAL PRADESH) (ITANAGAR BENCH)
SONGKHUPCHUNG SERTO, J.
M/s Lingi Trading Agency – Appellant
Versus
The State of AP and 4 Ors. – Respondents
WP(C) 442 of 2022
Decided on : 01-02-2023

Advocates:
Advocate Appeared:
For the Appellant : Gimi Tarak
For the Respondent: Lissing Perme

Headnote:

Tender - Bids - Completion of the work - Executive Engineer (Electrical), Roing Electrical Division (respondent No. 4) issued an NIT dated inviting bids for “Electrification of Tourist destination in Lower Dibang Valley District [Eze Breeze Tower (Jawaharlal Nehru Van Udyan) and Sally Lake Arunachal Pradesh” for an estimated cost -to be submitted in a two-bid system i.e. technical and financial, wherein last date for submission was given , and time for completion of work was given as 12 months - NIT also mentioned that bids should be submitted physically and, time and date for opening were given – Held, there would always be some element of business between proprietor of firm and Attorney Holder which would naturally lead to flow of some gain to coffer of the proprietor of firm – Argument that second ground of rejection of bid annuls first is at best a nice argument since fate of whole case depends on the validity or non-validity of first ground of rejection - First ground on which the bid of petitioner was rejected having been found to be legally good, Court of view that, need for any further discussion on it does not arise - Argument that petitioner’s bid amount being lowest, acceptance of bid of respondent No. 5, which was higher would lead to escalation in expenditure of public money, it would be against public interest is not acceptable because, bid amount quoted by respondent No. 5 is still below tender amount given for work - Writ petition dismissed

JUDGMENT :

Heard Mr. I. Choudhury, learned senior counsel assisted by Mr. T. Garam on behalf of the petitioner, Mr. R. Saikia, learned counsel appearing for respondent Nos. 1 to 4, and Mr. Apang, learned senior counsel appearing for respondent no. 5.

2. The Executive Engineer (Electrical), Roing Electrical Division (respondent No. 4) issued an NIT dated 20.10.2022 inviting bids for “Electrification of Tourist destination in Lower Dibang Valley District [Eze Breeze Tower (Jawaharlal Nehru Van Udyan) and Sally Lake (at 4km point at Roing – Hunli Road)], Arunachal Pradesh” for an estimated cost of Rs. 3,22,46,000/-to be submitted in a two-bid system i.e. technical and financial, wherein the last date for submission was given as 02.11.2022, and the time for completion of the work was given as 12 months. The NIT also mentioned that the bids should be submitted physically and, the time and date for opening were given as 2:30 P.M. of 03.11.2022. Three firms including the petitioner’s participated in the tender and the amounts quoted by the three firms were as follows:

    (I) The petitioner’s firm i.e. M/s Lingi Trading Agency, Roing – 277,74,130.26.

(II) The private respondent M/s G.R. Enterprises, Roing – 310,87,532.00.

(III) M/s R.R. Traders, Roing – 225,20,405.45.

The bids were opened and evaluated by the duly appointed Tender Opening Board headed by the Executive Engineer (ERED) cum Chairman, Tender Opening Board. The result of the evaluation as given in the Recommendation Report/minutes of the Tender Opening Process dated 3.11.2022 was as follows:

    “Bidder 1: M/s R.R. Project has entered into joint venture with M/s Gaurav Electrical having its registration office at Opposite FCI Godown-Makum Road Tinsukia Assam. Whereas, this firm has fulfilled all the eligibility criteria but fails to satisfy the conditions of SBD under Volume-I Section-II (ITB) Clause-2.0 (Eligibility of Bidder) Sl. No.: 1.0

Bidder 2: M/s Lingi Trading Agency also fulfilled all the valid laid down eligibility criteria except for conditions of SBD under Volume-I Section-II (ITB) Clause- 2.0 Sl. No.: 2.1.8 at Page No. 4 wherein Kids and Kin are barred to participate in the standard process. The proprietor has appointed PA to Shri-Unti-Umbrey but this PA holder hasn’t produced Electrical License in his name which is pre-requisite criteria for participating in the bidding.

Bidder 3: M/s J.R. Enterprises has participated in the bidding making joint ventures with M/s Hene Agency. All the criteria have been fulfilled with joint portfolios. As remarked in the Technical Eligibility Criteria Evaluation sheet, bidding competitor objected to Electrical License of M/s J.R. Enterprise with reference to SBD Volume-I: Annexure-A of Section-III Clause-1.02 Sl. No.: 1.02.1 and Sl. No.: 1.02 (I), this condition are fulfilled by Joint Venture partner firm (M/s Hene Agency), M/s J.R. Enterprise have a new Electrical License which is new but valid and satisfies the bidding criteria.”

3. The Superintending Engineer (E), A.P Electrical Circle – VII, Department of Power, Lohit District, Tezu approved the Evaluation Report and instructed the Executive Engineer (E), Roing, Electrical Division, Department of Power vide letter dated 07.11.2022 to take necessary action for awarding the work to the private respondent. Aggrieved by the Evaluation Report and the approval of the Superintending Engineer (E), the petitioner is before this Court through his Power of Attorney holder, Shri Unti Umbrey challenging both the documents.

4. Mr. I. Choudhury, learned senior counsel appearing for the petitioner submitted that, because of lack of qualified and competent Contractors to carry out Government contract works, young and budding businessmen in the State have been allowed to participate in tenders by using the names of recognized and reputed firms through Power of Attorney so that they may be groomed as good contractors and at the same time are gainfully employed for their own good and also for the State, and

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