IN THE HIGH COURT OF GAUHATI, ASSAM, NAGALAND, MIZORAM AND ARUNACHAL PRADESH
SANDEEP MEHTA, MITALI THAKURIA, JJ.
Pabitra Boro, S/o. Late Galendra Boro - Petitioner
Versus
The State of Assam, Rep. by the Commissioner and Secretary to the Govt. of Assam, Public Works Roads Deptt. & Ors. - Respondents
WA No. 317 of 2022
Decided On : 25-07-2023
Tender - Bid Qualification - Clause 4.3(f), Clause 4.5(A) - [Financial standing reports for the past 5 years, Minimum annual financial turnover] - The court reversed the judgment of the Single Bench, holding that the bid of the appellant was responsive, considering the vagueness in the tender document and the discretion given to the employer under Clause 31.1(i) to award the work to the substantially responsive bidder. The court emphasized that the decision must be arrived at after objective consideration and evaluation and cannot be interfered with if not found to be arbitrary, malafide, irrational, unreasonable, or biased.
Fact of the Case:
The appellant and the respondent participated in a bidding process for road construction. The respondent filed a writ petition claiming that the appellant's bid was defective. The Single Bench held the bid non-compliant and quashed the Letter of Acceptance issued to the appellant. The appellant appealed, and during the appeal, the State Government re-examined the matter and decided to award the work to the appellant based on past experience.
Finding of the Court:
The court reversed the Single Bench's judgment, holding that the bid of the appellant was responsive, considering the vagueness in the tender document and the discretion given to the employer to award the work to the substantially responsive bidder.
Issues: The main issue was whether the bid of the appellant was compliant with the tender conditions, specifically Clause 4.3(f) and Clause 4.5(A).
Ratio Decidendi: The court emphasized that the decision to award the work to the appellant must be arrived at after objective consideration and evaluation and cannot be interfered with if not found to be arbitrary, malafide, irrational, unreasonable, or biased.
Final Decision: The court allowed the appeal, reversed the judgment of the Single Bench, and disposed of all pending applications with no order as to cost.
JUDGMENT :
S. Mehta, J.
The instant intra-Court writ appeal is preferred by the appellant herein for challenging the judgment dated 25.08.2022 passed by the learned Single Bench in WP(C) 2924/2021, accepting the writ petition preferred by the respondent no.6 herein/writ petitioner.
Brief facts:
1. A Notice Inviting Tender (NIT) dated 21.12.2020 was issued by the Chief Engineer, PWD (Roads Division), Assam, for construction of roads in the Bodoland Territorial Council (BTC) area under State Owned Priority Development-G (SOPD-G) for the year 2019-2020. The appellant Pabitra Boro as well as the respondent no.6 Bhaba Dev Mahanta, the writ petitioner and so also a few other bidders claiming to be qualified in all aspects participated in the bidding process for construction of the roads in question under package No. SOPD-G-19-20-47. The bids of the writ petitioner Bhaba Dev Mahanta as well as the appellant were declared to be technically responsive. The bids of the appellant and the writ petitioner were equal on financial aspects and both were equally placed on the price quoted. The bid of the appellant was accepted by the Chief Engineer.
Being aggrieved, the writ petitioner Bhaba Dev Mahanta filed the afore-stated writ petition claiming that the bid of the respondent no. 6 in the writ petition, Pabitra Boro, was defective/incomplete as the same did not meet the mandatory requirements of Clauses 4.3(f) and 19.2(a)(iii) of the tender conditions but in spite thereof bid of the appellant was declared to be technically responsive and a Letter of Acceptance (LoA) dated 26.02.2021 was issued in his favour though the financial bids of the writ petitioner and the respondent no.6/appellant herein were equally placed. Accordingly, Bhaba Dev Mahanta filed the writ petition questioning the award of LoA to the respondent no.6/appellant herein, namely, Shri Pabitra Boro.
2. The learned Single Bench while entertaining the writ petition, directed maintenance of status quo, which was extended from time to time. After receiving the pleadings of the parties, hearing the arguments advanced at the Bar and appreciating the material available on record, the learned Single Bench went to hold that the bid of Pabitra Boro, i.e. appellant herein, was not compliant of the tender conditions on the ground that the same was in violation of Clause 4.3 of the tender documents, which required the bidders to state their financial standing for the last five years. As the bid of Pabitra Boro was incomplete on that aspect and the same was declared to be technically non-responsive. Accordingly, the decision of the tendering authorities to hold the bid of the respondent no.6/appellant herein responsive and the Letter of Acceptance dated 26.02.2021 issued in favour of the said respondent were quashed while accepting the writ petition by the impugned judgment. Shri Pabitra Boro (respondent no.6 in the writ petition) has preferred the instant intra-Court writ appeal challenging the impugned judgment dated 25.08.2022.
3. During pendency of the writ appeal and while hearing the arguments advanced at the Bar, this Court received a suggestion from learned Advocate General, Assam, Mr. D. Saikia that the State Government was prepared to re-examine the matter keeping in view the financial bids and other associated documents submitted by the equally placed bidders and to take an objective decision regarding allotment of the works in question. The authorities were permitted to undertake this exercise vide order dated 28.02.2023. Accordingly, the matter was re-examined at the end of the authorities and after giving due consideration to the facts and figures submitted by the equally placed L-1 bidders, i.e. the writ petitioner and the appellant herein, a speaking order dated 09.03.2023 was passed concluding that since all the L-1 bidders were financially stable as per their submitted documents, past experience became the key factor and, taking note of the past performance in completion
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The decision to award a tender contract must be arrived at after objective consideration and evaluation and cannot be interfered with if not found to be arbitrary, malafide, irrational, unreasonable,....
Judicial review in tender matters limited to arbitrariness or mala fides; courts defer to authority's bid compliance assessment, refusing substitution unless perverse.
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The court upheld the tendering authority's discretion in setting eligibility criteria, emphasizing limited judicial review focused on procedural fairness rather than the merits of the decision.
Judicial review in tender matters is limited to assessing procedural fairness, not the merits of the tender conditions, which are determined by the tendering authority.
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Point of Law : There is no compulsion for the authority concerned to seek for clarification before coming to a finding that the tender of a particular tenderer is not responsive
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