IN THE GAUHATI HIGH COURT (HIGH COURT OF ASSAM, NAGALAND, MIZORAM AND ARUNACHAL PRADESH)
ARUN DEV CHOUDHURY, J.
M/s Consulting Engineer (Ng) And Ors – Appellants
Versus
The State Of Assam And 6 Ors – Respondents
WP(C) 3526 of 2024
Decided on : 23-09-2024
Contract Labour - Tender Evaluation - Contract Labour (Regulation and Abolition) Act, 1970; Assam Rules, 1971 - The court interpreted the provisions of the Act and Rules, emphasizing the need for transparency in tender criteria and the validity of labor licenses, leading to the conclusion that the rejection of the petitioner's bid was arbitrary.
Fact of the Case:
The petitioner challenged the rejection of their bid for a construction project by the Evaluation Committee, which deemed their labor license invalid as it was only applicable to Kamrup District, while the project was in Sivasagar District.
Finding of the Court:
The court found that the rejection of the petitioner's bid was arbitrary and unreasonable, as the labor license was valid under the Act and the Rules, and the criteria for evaluation were not transparently disclosed in the tender documents.
Issues: Whether the rejection of the petitioner's bid based on the validity of their labor license was arbitrary and whether the evaluation criteria were adequately disclosed in the tender documents.
Ratio Decidendi: The court held that the employer must disclose all evaluation criteria in the tender documents to ensure fairness and transparency, and that a valid labor license under the Act should not be deemed invalid without clear criteria.
Result: The writ petition is allowed, and the decision of the Evaluation Committee is quashed.
JUDGMENT :
1. Heard Mr. R. Singha, learned counsel for the petitioners. Also heard Ms. M. Katoky, learned Standing Counsel for the Department of Animal Husbandry & Veterinary, Government of Assam who is representing the respondent Nos. 1 to 4, Mr. H. K. Das, learned counsel appearing for the respondent No.5, 6 and 7 and Mr. D. Nath, learned Senior Government Advocate for the State of Assam, who had assisted this Court on request for purpose of dealing with the provision of the Contract Labour (Regulation and Abolition) Act, 1970 and the Contract Labour (Regulation and Abolition) Assam Rules, 1971.
2. The Director of Animal Husbandry and Veterinary Department, Guwahati had floated a Notice Inviting Tender on 23.02.2024 for the construction of a New Multicare Hospital including Logistics at Joysagar in Sivasagar District under SOPD-G. The petitioner and the private respondents submitted their Bids for the aforesaid work. The Bid Evaluation Committee, (hereinafter referred to as Evaluation Committee) after evaluation of the Bid, while declaring the Bids of the private respondent Nos. 5, 6 and 7 to be responsive, had declared the Bid of the petitioner to be non-responsive in its meeting dated 01.07.2024 for the reason that the labour license submitted by the petitioner is valid for Kamrup (M), District only. Being aggrieved by the impugned action on the part of the Evaluation Committee, the present writ petition is filed.
3. Mr. R. Singha, learned counsel for the petitioner argues the following:-
II. The Minutes clearly reveal that the committee sought shortfall documents from the private respondent Nos. 6 and 7 and such a course of action is not permissible under biding terms and the same has been done only to facilitate the respondent Nos. 6 and 7 and the petitioner was not granted such benefit.
III. The petitioner had substantially complied with the requirement of a valid labour license inasmuch as his labour license is valid in terms of the Contract Labour ( Regulation and Abolition) Act, 1970 (hereinafter referred to as the Act, 1970) and the Contract Labour (Regulation and Abolition) Assam Rules, 1971 (hereinafter referred to as Rules, 1971). The certificate of the principal employer clarifies that the petitioner’s license permits, the use of contract labour under any work of the Veterinary Department.
IV. The petitioner had substantially complied with all the mandatory requirements, however, such facts have been ignored and an unfair process has been adopted to oust the petitioner from the race of the tender. Therefore, there is no fair play on the action of the authorities and such action is not permissible under the procedure prescribed in ITB, more particularly Clause 35.
V. Under different provisions of the Act, 1970 more particularly, the definition given under the Act, 1970, Section 12, Section 20 of the Act, and Rules 21, 24, 25, 32 of the Rule, 1971 and Form-IV, V and VI, a labour license can be issued when a contractor is already engaged or proposed to be engaged and such license is work specific and therefore, for all meaning and purport, insistence by the the respondent authorities of labour license is only for purpose of examining whether the bidder is having any earlier experience in contract labour or not.
VI. In terms of clauses 30, 31, 32 of the instruction to bidder and Clause 2 of Section IV of the bid document and also
Michigan Rubber (India) Limited –Vs- State of Karnataka and Others reported in (2012) 8 SCC 216
The court established that evaluation criteria in tender documents must be clearly disclosed to ensure fairness, and valid licenses under the Contract Labour Act cannot be arbitrarily deemed invalid.
The requirement of a labor license covering the specific district is essential for bid evaluation, and the interpretation by the employer should be upheld unless proven arbitrary or unreasonable.
Government Contract – Tender Call Notice – Judicial review in these matters is equivalent to judicial restraint in these matters. Writ court does not have expertise to correct such decisions by subst....
The central legal point established in the judgment is that the rejection of a bid must be lawful and in accordance with the terms of the tender notice. The court emphasized the importance of meeting....
The acceptance of a non-responsive tender violates established tendering criteria and principles of fairness, leading to arbitrary and discriminatory treatment of compliant bidders.
Tender conditions are binding and deviations lead to arbitrariness, violating fairness in the procurement process.
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