IN THE HIGH COURT OF GAUHATI, ASSAM, NAGALAND, MIZORAM AND ARUNACHAL PRADESH
SANDEEP MEHTA, ARUN DEV CHOUDHURY, JJ.
Technip Energies India Ltd. – Appellant
Versus
The Union of India and Others – Respondents
WA No. 258 of 2023
Decided On : 20-07-2023
Tender - Rejection of Bid - NIT - Clause-39 - Password Protection - BoQ Statement - Comparative Tabulation - Judicial Review - Transparency in Government Tender
Fact of the Case:
The appellant participated in a tender for supply of Reactor and Regenerator package for PFCC Unit. The price bid of the appellant was found to be password protected and could not be opened, leading to rejection of the bid by the NRL. The appellant filed a writ petition challenging the rejection, which was dismissed by the Single Judge. The appellant appealed against this decision.
Finding of the Court:
The Court found that the rejection of the bid was justified as per the tender conditions, and there was no mala-fide exercise of power by the NRL. The appellant's password-protected bid was considered a defect in format, leading to its rejection. The Court upheld the Single Judge's decision and imposed a cost of Rs. 1 lakh on the appellant for causing delay in an important public project.
Issues: The main issue was the validity of the rejection of the appellant's bid due to password protection and the subsequent judicial review of the decision.
Ratio Decidendi: The Court held that the rejection of the bid was in accordance with the tender conditions, and the appellant's action of password protecting the bid was a serious mistake subverting the transparency of the tender process. The employer NRL acted reasonably, and there was no intention to favor any party. The interpretation of the tender document by the NRL was upheld, and the rejection of the bid was deemed justified.
Final Decision: The Court upheld the Single Judge's decision, dismissed the appeal, and imposed a cost of Rs. 1 lakh on the appellant. The appellant was directed to deposit the cost in the account of Gauhati High Court Bar Association Welfare Fund within thirty days.
JUDGMENT :
ARUN DEV CHOUDHURY, J.
1. Heard Mr. K. Goswami, learned Senior Counsel assisted by Mr. A. Khanna, learned counsel for the appellant. Also heard Mr. K.N. Choudhury, learned Senior Counsel assisted by Mr. N. Deka, learned counsel appearing for the respondent No. 2 and 3 and heard Dr. A. Saraf, learned Senior Counsel assisted by Mr. P. Baruah, learned counsel for the respondent No. 4.
2. The factual background of the case:
(II) The appellant before this Court was one of the bidders in respect of a tender invited by the respondent no. 2, Numaligarh Refinery Limited (hereinafter to be referred to as NRL) being NIT bearing no. TK-1P25A-MP-RFQ-0034 dated 25.10.2022 for supply of Reactor and Regenerator package for PFCC Unit as per technical specifications for NRL, Assam, India.
(III) The NIT invited was on an open global e-tender basis under a single stage 2 bid system, Part-I techno commercial bid (un-priced bid) and Part-II (price bid).
(IV) In response to the said NIT invited by the respondent no.2, the appellant as well as respondent no. 4 submitted their bids. Both the bidders were found to be responsive in the techno commercial evaluation.
(V) Subsequently, when the price bids were opened on 26.12.2022, the price bid of the appellant could not be opened in the Portal as it was found to be password protected.
(VI) As per the clauses of the NIT, a system generated BoQ Statement is to be taken out upon opening of the price bids. As the price bid of the appellant could not be opened, the BoQ system generated statement revealed the details only with regard to respondent no. 4. In so as the appellant is concerned, the particulars of the price bid and the items were not reflected.
(VII) The appellant as a writ petitioner approached this Court by way of filing WP (C) No. 96/2023. By the impugned Judgment and Order dated 27.06.2023, the learned Single Judge dismissed the writ petition by holding that there is no infirmity in the decision making process and also in the decision itself taken by the NRL to reject the price bid of the petitioner (the appellant herein). The writ petition was found to be devoid of merit and was accordingly dismissed vide judgment dated 27.06.2023 which is assailed in this intra Court appeal.
3. Arguments advanced on behalf of the appellant.
Assailing such judgment, Mr. K. Goswami, learned Senior Counsel advanced the following arguments:
(II) Under Clause-39 of the tender, though there is a contemplation that there should not be any password protection in technical bid, however, such restriction not being specifically imposed in respect of price bid, the price bid of the appellant could not have been rejected for the reason that the appellant uploaded the price bid with password and log in credentials, however, the learned Single Judge has failed to appreciate such fact.
(III) As the tender clauses authorizes the tendering authority to seek clarification from the bidder and the tendering authority has sought for the log in credentials of the appellant, as such, after receipt of such credentials and passwords provided by the appellant, the reason for rejection was no more available. However, the learned Singe Judge has given undue importance to such inadvertent mistake on the part of the appellant which was otherwise inconsequential for the evaluation process after being rectified at the behest
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Power of judicial review can be invoked if approach adopted is found to be arbitrary or mala fide or if procedure adopted is meant to favour one.
Court ruled the rejection of a technical bid for using an authorized dealer's DSC was arbitrary as eligibility conditions were met, emphasizing fair competition in tender processes.
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Tender authorities must adhere to statutory criteria and act transparently; courts will not interfere unless clear evidence of arbitrariness or malafide conduct is presented.
Judicial review of tender processes is limited to ensuring fairness and transparency. Tendering authorities may correct inadvertent errors in technical evaluations during the stipulated process windo....
Important Point – Government Contract – Tender – Public authorities have to ensure that no bias, favouritism or arbitrariness are shown during bidding process and that entire bidding process is carri....
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