IN THE HIGH COURT OF GAUHATI, ASSAM, NAGALAND, MIZORAM AND ARUNACHAL PRADESH
KALYAN RAI SURANA, J.
Anjala Basumatary, W/o. Satho Basumatary – Petitioner
Versus
The State Of Assam, rep. by The Principal Secretary, To the govt. Of Assam, Environment And Forest Department and Ors. – Respondents
WP(C) No.3308 Of 2022
Decided On : 19-01-2024
Tender Rejection - Forest Contract - [Afcons Infrastructure Ltd. v. Nagpur Metro Rail Corpn. Ltd., (2016) 16 SCC 818, Maa Binda Express Carrier & Anr. v. North East Frontier Railway & Ors., (2014) 3 SCC 760, Air India Ltd. v. Cochin International Airport Ltd. & Ors., (2000) 2 SCC 617] - The court upheld the rejection of the petitioner's tender bid due to technical non-compliance and lack of condonable defects, ruling that the decision-making process of the tendering authority was not vitiated.
Fact of the Case:
The petitioner sought to set aside a Letter of Intent and Work Order issued to a private respondent by the Divisional Forest Officer, alleging prevention from accessing bidding documents and financial loss to the State exchequer.
Finding of the Court:
The court found that the rejection of the petitioner's tender bid was justified due to technical non-compliance and lack of condonable defects. The court dismissed the writ petition, ruling that the decision-making process of the tendering authority was not vitiated.
Issues: The issues included the justification for rejection of the petitioner's tender bid, financial loss to the State exchequer, entitlement to equitable relief, and delay in approaching the court.
Ratio Decidendi: The court held that the tendering authority's decision-making process should be respected unless there is mala fide or perversity, and that the court should only interfere in tender matters in furtherance of public interest. The court also ruled that delay in approaching the court was not fatal in this case.
Final Decision: The court dismissed the writ petition, upholding the rejection of the petitioner's tender bid and ruling that the decision-making process of the tendering authority was not vitiated.
JUDGMENT :
Heard Mr. T.J. Mahanta, learned senior counsel, assisted by Mr. J. Sarmah, learned counsel for the petitioner. Also heard Mr. D. Gogoi, learned standing counsel for the State respondent nos. 1 to 4 and Mr. S. Borthakur, learned counsel for private respondent no.5.
2. By filing this writ petition under Article 226 of the Constitution of India, the petitioner has prayed for setting aside the Letter of Intent (LoI for short) and consequential Work Order dated 01.12.2021, issued by the Divisional Forest Officer, Dhemaji Division (hereinafter referred to as ‘DFO’ for short) (respondent no.4) in favour of the private respondent no. 5. The petitioner has also prayed for directing the respondent authorities to consider the tender submitted by the petitioner as technically qualified for participation in the second stage of auction along with other technically qualified bidders.
3. The case of the petitioner, in brief, is that the “Likabali Sand and Gravel Mahal Contract Area” (hereinafter referred to as “Likabali Mahal” for brevity under Dhemaji Forest Division was put for on-line sale vide e-Auction notice dated 21.06.2021. The bid was a two stage bid, and only the technically qualified and approved bidder in the first round of tender evaluation could participate in the on-line bidding process. The petitioner had submitted his on-line bid with earnest money along with all requisite documents, offering bid amount of Rs.4,45,00,511/- (Rupees Four crore forty five lakh five hundred eleven only). However, the petitioner was not invited for the second stage of on-line bidding. It is alleged that the status of the petitioner was not disclosed in the on-line bidding portal and therefore, the petitioner had submitted a RTI application dated 09.09.2021, demanding certain documents. As the information was not furnished, the petitioner had preferred an RTI appeal, which was allowed by order dated 08.10.2021 and accordingly, some of the documents were provided by the State Public Information Officer (SPIO for short) on 12.11.2021. The petitioner had procured a copy of the work order issued by the respondent no. 4 in favour of the respondent no. 5 for a bid amount of Rs.1,13,00,000/- (Rupees one crore thirteen lakh only). Thus, in this writ petition, it is projected that the respondent no. 4 and other respondent authorities had prevented the petitioner from getting access to the relevant bidding documents, comparative statement, etc. In the meanwhile, the Likabali Mahal was settled with the respondent no. 4, which has caused financial loss of Rs.3,33,00,511/- (Rupees three crore thirty three lakh five hundred fifty one only) to the State exchequer.
4. The submissions of the learned senior counsel for the petitioner as well as the learned counsel representing the respondents are referred to hereinafter.
5. In support of his submissions, the learned senior counsel for the petitioner has cited the following cases, viz., National High Speed Rail Corporation Ltd. v. Montecarlo Limited, (2022) 6 SCC 401, and Star Enterprises & Ors. v. City Industrial Development Corporation of Maharashtra Ltd. & Ors., (1990) 3 SCC 280.
6. Having heard the submissions from all sides, the point of determination which arises in this writ petition are as follows:-
ii. Whether the rejection of the tender of the petitioner during technical evaluation was justified merely because the “Likabali Sand and Gravel Mahal Contract Area” was mentioned as “Likabali Quarry” in the affidavit submitted by the petitioner with her bid?
iii. Whether on the ground that by technically disqualifying the petitioner, the State exchequer would suffer financial loss to the extent of Rs.3,33,00,511/- (Rupees three crore thirty three lakh five hundred fifty one only, the techni
National High Speed Rail Corporation Ltd. v. Montecarlo Limited
Star Enterprises & Ors. v. City Industrial Development Corporation of Maharashtra Ltd. & Ors.
Afcons Infrastructure Ltd. v. Nagpur Metro Rail Corpn. Ltd.
Maa Binda Express Carrier & Anr. v. North East Frontier Railway & Ors.
Union of India & Ors. v. N. Murugesan & Ors.
R. And M Trust v. Koramangala Residents Vigilant Group
State of M.P. & Ors. v. Nandlal Jaiswal & Ors.
M/s. Star Enterprises & Ors. v. City and Industrial Development Corporation of Maharashtra & Ors.
The decision-making process of the tendering authority should be respected unless there is mala fide or perversity, and the court should only interfere in tender matters in furtherance of public inte....
The rejection of bids must be based on valid reasons and must not be arbitrary or mala fide. Court orders must be adhered to, and decisions must be in accordance with the law.
Judicial review in tender matters limited to arbitrariness or mala fides; courts defer to authority's bid compliance assessment, refusing substitution unless perverse.
In tender matters, judicial review is limited; courts defer to tender authority's bid responsiveness assessment unless arbitrary, mala fide or perverse, prioritizing public interest in infrastructure....
An unsuccessful bidder lacks standing to challenge the issuance of a Letter of Intent when disqualified for failing to meet mandatory requirements.
An unsuccessful bidder cannot challenge the award of a tender if disqualified in the technical evaluation, as they lack standing to do so.
Adherence to the prescribed format and requirements outlined in the bidding documents is crucial, and failure to comply with mandatory requirements can lead to the valid rejection of a technical bid.
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.
The court emphasized the importance of fair and transparent decision-making in tender evaluations, asserting judicial review is warranted when actions of administrative bodies exhibit arbitrariness b....
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