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2024 Supreme(Gau) 23

IN THE HIGH COURT OF GAUHATI, NAGALAND, MIZORAM AND ARUNACHAL PRADESH
Devashis Baruah, J.
Ajit Baruah, S/o. Haren Baruah – Petitioner
Versus
The State Of Assam Represented By The Principal Secretary To Government Of Assam, Environment and Forest Department and ors. – Respondents
WP(C)/1466 & 1737 of 2023
Decided On : 09-02-2024

Advocates:
Advocate Appeared:
For the Petitioner:Mr. K. N. Choudhury, Sr. Advocate, Mr. M. Mahanta, Advocate Mr. P. K. Munir, Advocate
For the Respondent:Mr. D. Das, Sr. Advocate Mr. S. Khound, Advocate Mr. D. Gogoi, Advocate Mr. I. Borthakur, Advocate

The rejection of technical bids based on arbitrary grounds was unjustified, necessitating a fresh tender process due to the flawed evaluation and lack of two qualified bidders.

Headnote:(A) Assam Minor Mineral Concession Rules, 2013 - Rules 32, 33, and 34 - Writ petitions challenging rejection of technical bids in E-Auction for minor mineral concession - Petitioners' bids rejected on grounds of missing documents and incorrect court fee - Court found rejection arbitrary and contrary to bidding documents - Technical evaluation process flawed due to lack of two qualified bidders - Fresh tender process ordered. (Paras 1-51)

(B) Tender Process - Requirements for technical bids - Court emphasized that disqualification must align with bidding document terms - Minor deviations should not lead to disqualification if essential criteria are met. (Paras 22-24)

(C) Judicial Review - Court's role in reviewing administrative decisions in tender processes - Emphasized that decisions must be justifiable and not arbitrary. (Paras 30-32)

Facts of the case:
The petitioners challenged the rejection of their bids for the Dikrong Sand and Gravel Mining Contract Area, citing arbitrary grounds for disqualification, including missing documents and incorrect court fee submission.

Findings of Court:
The court found that the rejection of bids was unjustified and ordered a fresh tender process due to the flawed evaluation and lack of two technically qualified bidders.

Issues: The main issues included the justification for disqualification of bids and whether the tender process should be annulled.

Ratio Decidendi: The court ruled that the rejection of bids was arbitrary and not in accordance with the bidding documents, emphasizing the need for a fair evaluation process.

Result: Writ petitions allowed; fresh tender process ordered.

JUDGMENT :

Heard Mr. K. N. Choudhury, the learned senior counsel assisted by Mr. M. Mahanta, the learned counsel for the petitioner in WP(C) No.1466/2023 and Mr. P. K. Munir, the learned counsel for the petitioner in WP(C) No.1737/2023. I have also heard Mr. D. Gogoi and Mr. I. Borthakur, the learned counsels appearing on behalf of the Forest Department of the Government of Assam as well as Mr. D. Das, the learned senior counsel assisted by Mr. S. Khound, the learned counsel appearing on behalf of the private respondents.

2. Both the writ petitions are taken up together taking into account that both the writ petitions are in relation to the Long E-Auction Notice dated 07.06.2021 and the petitioners herein have assailed the order dated 08.02.2023 whereby the bids of the petitioners in both the writ petitions have been rejected on the ground of failing in the technical bid.

3. The facts involved in both the writ petitions are pari-materia for which this Court finds it relevant to take note of the facts involved in WP(C) No.1466/2023 and while doing so, this Court had also duly taken note of the differences in the facts in WP(C) No.1737/2023 as would be seen infra.

4. The Divisional Forest Officer, Lakhimpur Division had issued a Long E-Auction Notice dated 07.06.2021 in terms with the provisions of Rule 32, 33 and 34 of the Assam Minor Mineral Concession Rules, 2013 (for short, ‘the Rules of 2013’). A perusal of the contents of the said Long E-Auction Notice dated 07.06.2021 reveal that the bids were invited in two systems, i.e. technical and financial from registered contractors, firms, societies and individual etc. for award of lease/contract /permit for five Minor Mineral Concession Arrears (Mahals). The instant writ petitions are in relation to the Minor Mineral Concession Area No.4., i.e. Dikrong Sand and Gravel Mining Contract Area of 2021-27 (10 Ha.) and for the sake of convenience, the said Minor Mineral Concession Area is herein after referred to as ‘the Mahal in question’. It is also relevant to take note of that the said Long E-Auction Notice stipulated the type of Minor Mineral and the quantity in cu.m in respect to the Mahal in question. The total quantity of the sand was 1,40,000 m3 and for gravel 1,96,000 M3. The earnest money deposit was Rs.58,80,000/- and the contract period was mentioned to be 7 years (from the date of signing the agreement). It is also seen from the said Long E-Action Notice that the details of the eligibility criteria, experience, auction schedule and other terms and conditions were available in the auction document to be purchased and downloaded by the bidder from the portal, i.e. https://www.assamforestonline.in up to 04.07.2021. Further to that, the online bidding would commence from 11.06.2021 and the last date for submission of the online bid was 05.07.2021. The petitioners in both the writ petitions along with others purchased the auction documents and submitted their bids online mode.

5. It is the case of both the writ petitioners that certain documents which were submitted in the online mode mysteriously disappeared for which the petitioners duly submitted respective representations before the Divisional Forest Officer and the Divisional Forest Officer informed the petitioners that the said aspect would be looked into. While the said process was going on, the technical bid of both the petitioners were rejected for which both the writ petitioners filed two writ petitions before this Court which were registered and numbered as WP(C) No.3394/2021 and WP(C) No.3610/2021.

6. It is relevant to take note of that in the case of the writ petitioner in WP(C) No.1466/2023, the ground for rejection was that the cancelled court fee of Rs.100/- was not found as well as the notarized affidavit on Rs.100/- non-judicial stamp about Minor Mineral held by the bidder and that no mineral revenue due to the Government were not found. In respect to the writ petitioners in WP(C) No.1737/2023, the technical bid was

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