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2023 Supreme(Gau) 1257

IN THE HIGH COURT OF GAUHATI, NAGALAND, MIZORAM AND ARUNACHAL PRADESH
Manish Choudhury, J.
M/s Mediciti Healthcare Services Pvt. Ltd. - Petitioner
Versus
The State of Assam Represented by the Commissioner and Secretary, Ministry of Health and Family Welfare and ors. – Respondents
Writ Petition (C) No. 2477 of 2023
Decided On : 10-11-2023

Advocates:
Advocate Appeared:
For the Petitioner:Mr. M.K. Choudhury, Senior Advocate, Mr. M. Biswas, Advocate, and Mr. K. Arouh, Advocate
For the Respondent:Mr. D. Saikia, Advocate General, Assam, Mr. B. Gogoi, Standing Counsel, Mr. T.J. Mahanta, Senior Advocate, Mr. P.P. Dutta, Advocate

The requirement for bidders to have a minimum number of experienced Biomedical Engineers on Payroll is essential for eligibility in tender processes, and the court respects the discretion of the Bid Evaluation Committee in interpreting this criterion.

Headnote:(A) Article 226 of the Constitution of India - Writ petition challenging rejection of Technical Bids in e-Tender processes - Petitioner alleged arbitrary rejection based on non-fulfillment of criteria regarding minimum experienced Biomedical Engineers on Payroll - Court upheld Bid Evaluation Committee's decision, emphasizing the essential nature of eligibility criteria - Petitioner failed to demonstrate compliance with requirements. (Paras 1, 22, 27)

(B) Judicial Review - Scope of judicial review in tender matters - Court's role limited to examining decision-making process for arbitrariness or illegality - Tendering authority's discretion in interpreting eligibility criteria respected unless manifestly unreasonable. (Paras 16, 26)

Facts of the case:
The petitioner submitted Technical Bids for two e-Tender Notices but was rejected for not having the minimum required number of Biomedical Engineers on Payroll, as mandated by the Bid Document. The Bid Evaluation Committee found the Technical Bids of the petitioner non-responsive while accepting those of another bidder.

Findings of Court:
The court found no arbitrariness in the Bid Evaluation Committee's decision and upheld the essential eligibility criteria set forth in the Bid Documents.

Issues: The main issues were whether the rejection of the Technical Bids was arbitrary and whether the condition regarding minimum Biomedical Engineers on Payroll was essential.

Ratio Decidendi: The court ruled that the requirement for having Biomedical Engineers on Payroll was essential for eligibility and that the decisions made by the Bid Evaluation Committee were not arbitrary or irrational.

Result: Writ petition dismissed.

JUDGMENT :

Rejection of both the Technical Bids submitted by the petitioner in response to an e-Tender Notice dated 13.10.2022 for Tender no. : NHM-18016/8/2022-Procurement-NHM-55-P and another e-Tender Notice dated 18.10.2022 for Tender no. : NHM-18016/8/2022-Procurement-NHM-83-P respectively by decisions taken by the Bid Evaluation Committee in its Meeting, held on 05.04.2023, have led the petitioner to institute the writ petition under Article 226 of the Constitution of India seeking setting aside of that decisions contained in the Minutes of the Bid Evaluation Committee dated 05.04.2023. Seeking a further direction in the nature of mandamus to the State respondent authorities to declare the petitioner’s both the Technical Bids submitted in response to the e-Tender Notice dated 13.10.2022 and the e-Tender Notice dated 18.10.2022 as responsive, the petitioner has also sought for a direction in the nature of mandamus to the State respondent authorities to declare both the Technical Bids submitted by the respondent no. 5 in response to the e-Tender Notice dated 13.10.2022 and the e-Tender Notice dated 18.10.2022 as non-responsive as the said two Technical Bids submitted the respondent no. 5 have been declared to be responsive ones by the Bid Evaluation Committee amongst the decisions taken in its Meeting, held on 05.04.2023.

2. In order to understand the nature of challenges made and prayers sought for by the petitioner, it is necessary to exposit the background facts as their genesis are traceable to two National Competitive Bidding processes initiated by the e-Tender Notice dated 13.10.2022 and the e-Tender Notice dated 18.10.2022.

2.1. By the e-Tender Notice dated 13.10.2022 for Tender no. : NHM-18016/8/2022-Procurement-NHM-55-P, the Mission Director, National Health Mission, Assam [the respondent no. 3] invited e-Tenders in two-Bid System from reputed agencies for a contract work :-‘For Hiring of Service Providers for Biomedical Equipment Maintenance and Management Programme [BEMMP] in the Medical Colleges of the State’. The last date/time of uploading of the Tenders on-line was originally, fixed up-to 02-00 p.m., 03.11.2022. Later on, the last date/time of uploading of the Tenders was extended up-to 06-00 p.m., 03.12.2022 vide a Notice of Extension of Bid Submission End Date dated 02.11.2022. Finally, by another Corrigendum being Corrigendum no. 1 dated 23.11.2022, the last date/time of uploading the Tenders was extended till 02-00 p.m., 08.12.2022.

2.2. By the e-Tender Notice dated 18.10.2022 for Tender no. : NHM-18016/8/2022-Procurement-NHM-83-P, the Mission Director, National Health Mission, Assam [the respondent no. 3] invited e-Tenders in two-Bid System from reputed agencies for another contract-work :-

    ‘For Hiring of Service Providers for Biomedical Equipment Maintenance and Management Programme [BEMMP] from the level of DH [District Hospital] to PHC [Primary Health Centre]’. The last date/time of uploading of the Tenders on-line was originally, fixed up-to 02-00 p.m., 11.11.2022. Later on, the last date/time of uploading of the Tenders was extended up-to 06-00 p.m., 03.12.2022 vide a Notice of Extension of Bid Submission End Date dated 02.11.2022. Finally, by another Corrigendum being Corrigendum no. 1 dated 23.11.2022, the last date/time of uploading the Tenders was extended till 02-00 p.m., 08.12.2022.

2.3. By the two Corrigenda, both dated 23.11.2022, the time/date of Bid Opening of the Technical Bids was scheduled at 05-00 p.m. on 09.12.2022 in respect of both the Tender Processes.

2.4. The Tender Inviting Authority is the National Health Mission [NHM], Assam, who on behalf of the User Institutions/Government or the Funding Agencies, has called for the e-tenders. The User Institutions in respect of the e-Tender Notice dated 13.10.2022 for Tender no. : NHM-18016/8/2022-Procurement-NHM-55-P [hereinafter also referr

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