IN THE GAUHATI HIGH COURT (HIGH COURT OF ASSAM, NAGALAND, MIZORAM AND ARUNACHAL PRADESH)
SANJAY KUMAR MEDHI, J.
M/s J.C. Stationery (P) Ltd - Appellant
Versus
The State Of Assam And Ors – Respondents
WP(C) 1876 of 2022
Decided on : 06-06-2023
Constitution of India, 1950 - Article 226 - Clauses of tender - Misinterpretation of bid document - Wrong interpretation of qualification criteria - Petitioner by wrong interpretation of qualification criteria appearing in Section VI-A, decision to hold technical bid of petitioner as non-responsive has been taken - Petitioner alleges that there is misinterpretation of Clauses 3 (vi)(x)(xi) of Section VI-A read with Clause 11.2(a) of bid document – Entire object of a Solvency Certificate being to have a prima facie satisfaction on financial health of bidder, such objective shall not be served by means of a Certificate of present nature which has been submitted by petitioner - Para 34.
Finding of the Court: An argument has been sought to be developed on behalf of petitioner that interpretation given to clauses of tender with regard to eligibility criteria are not correct - Such argument does not appear to be acceptable inasmuch as, interpretation of respondents regarding Bank Solvency Certificate and Completion Certificate appearing in Section VI-A of tender document appears to be a reasonable one - It is a settled law that author of tender document would be best person to interpret various clauses of tender and until and unless such interpretation is absolutely unreasonable and ex-facie fallacious, Court shall not embark upon same field which is within exclusive domain of authorities - Interference may be called for only in exceptional case where such interpretation is wholly unreasonable and against plain meaning - Court has also found force in argument made on behalf of respondents that no allegations of mala-fide has been made in decision making process - No allegations have also been made against accepting bids of private respondents to be technically responsive - Court is of opinion that no case for interference has been able to be made out by petitioner for exercise of extra-ordinary jurisdiction by Court under Article 226 of Constitution of India.
Result: Petitions dismissed.
JUDGMENT :
The issue of maintaining transparency and fairness in matters of distribution of State largesse has once again been raised by means of the present writ petitions. While the petitioners allege that by misinterpreting certain clauses of the tender document there has been violation of the established principles of law pertaining to distribution of State largesse, the version of the respondents is that the clauses of the bid document have been correctly interpreted and no infirmity or illegality has been committed in the process and therefore there is no requirement of any interference by this Court in exercise of its powers of judicial review.
2. Before going to the issue which is required to be adjudicated, it would be convenient if the facts of the case are narrated in brief.
3. Three numbers of writ petitions have been filed by the same petitioner with regard to a notice inviting tender dated 17.01.2022 issued by the Assam Sarva Shiksha Abhiyan Mission for procurement of Evaluation and Practice books. There are three categories in the said supply, namely, supplies for Class I and II [WP(C)/1876/2022], Class V [WP(C)/1878/2022] and Class VI &VIII[WP(C)/1877/2022].
4. It is the case of the petitioner that it has got a manufacturing plant in the State of Andhra Pradesh to manufacture notebooks, colour print etc. and was eligible for participation in the aforesaid tender process. The petitioner had participated in the aforesaid tender process for all the three categories. The petitioner expected that it being an experienced and reputed manufacturer of notebooks etc., it would be allotted the works. However, the Tender Evaluation Committee vide the minutes dated 25.02.2022 had rejected the bid of the petitioner as being technically non-responsive. In the said evaluation, the bids of the respondent nos. 5 and 6 were held to be technically responsive.
5. It is the case of the petitioner that by wrong interpretation of the qualification criteria appearing in Section VI-A, the decision to hold the technical bid of the petitioner as non-responsive has been taken. The petitioner alleges that there is misinterpretation of Clauses 3 (vi)(x)(xi) of Section VI-A read with Clause 11.2(a) of bid document. The writ petitions have accordingly been filed by challenging the note dated 25.02.2022.
6. On the other hand, the respondents contended that the protection made by the petitioner in these three cases are not correct. The very allegation on which the writ petition has been structured, namely, misinterpretation of the clauses of Section VI-A of the bid document is incorrect. The respondents further contended that the technical bid of the petitioner was not supported by valid documents and therefore the rejection of the bid of the petitioner on at the stage of technical evaluation was correctly done.
7. This Court has been apprised that though a prayer was made for an interim order on the ground that at the time of filing of the writ petition, no final orders of allotment was issued, the learned Single Judge vide order dated 15.03.2022 was not inclined to pass a blanket order of stay and had made an observation that all further action would be subject to the outcome of the writ petitions. This Court has also been apprised that against the order dated 15.03.2022 of the learned Single Judge, the present petitioners had preferred three numbers of writ appeal, being WA/139/2022, WA/157/2022 and WA/158/2022 in which the Hon’ble Division Bench had passed an order dated 27.05.2022 whereby the matters were remitted back to the learned Single Judge. However an observation was made that no bills are to be released to the suppliers till the disposal of the writ petition. It has been informed that thereafter, final orders of supply were issued and the learned counsel for the private respondents have informed that the supplies have been done in terms of the contract. In fact, three numbers of Interlocutory Applications have been filed by the private res
Afcons Infrastructure Ltd. Vs. Nagpur Metro Rail reported in(2016) 16 SCC 818
Agmatel India Private Limited reported in (2022) 5 SCC 362
W.B. State Electricity Board Vs. Patel Engineering reported in (2001) 2 SCC 451
It is a settled law that author of tender document would be best person to interpret various clauses of tender.
Judicial review in tender matters is limited; courts should not interfere unless actions are arbitrary, discriminatory, or biased.
Judicial review of tendering decisions is limited to assessing legality, with courts refraining from substituting the tender authority's decisions unless in cases of illegality or manifest arbitrarin....
Judicial review in tenders limited to mala fides, arbitrariness, irrationality impacting public interest; courts defer to authority's interpretation of eligibility unless perverse.
The court affirmed that the interpretation of tender conditions by the authority is paramount, and minor technical deficiencies do not justify judicial intervention.
The main legal point established in the judgment is the court's authority to intervene in the tender process if it is found to be contrary to the principles of equality and non-arbitrariness as enshr....
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