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MICHAEL ZOTHANKHUMA
Chayanika Handloom Products – Appellant
Versus
State Of Assam – Respondent
JUDGMENT :
MICHAEL ZOTHANKHUMA, J.
1. Heard Mr. B. Sharma, learned counsel for the petitioner. Also heard Mr. R. Dhar, learned counsel for the State respondents No.1-3. Mr. D.K. Nath, learned counsel appears for the private respondents No.4-13.
2. The grievance of the petitioners is that the petitioners’ tender bid has been disqualified by the Technical Evaluation Committee, vide meeting minutes dated 22.02.2024, on the ground that the petitioners had submitted documents, which were not in conformity with Clause 13(h) of the NIT.
3. The petitioners’ case is that they had participated in e-Tender Notice dated 11.01.2024 (hereinafter referred to as the ‘NIT’), for empanelment of manufacturers and suppliers for supply of handloom and handloom accessories under the various schemes of Government of India and Government of Assam, implemented by the Directorate of Handloom and Textiles, Assam.
4. The petitioners’ counsel submits that in terms of Clause 3(b) of the NIT, relating to the eligibility criteria of the bidders, bidders were to have not less than Rs. 50 Lakhs as the average annual financial turnover during the last three years, i.e., 2020-2021, 2021-2022 & 2022-2023 and they were also
Income tax returns are distinct from average annual financial turnover; MSE exemption does not apply to income tax return requirements in tender documents.
The exemption for Micro and Small Enterprises does not apply to the submission of Annual Audited Reports and Income Tax Returns as required by the NIT.
Micro and Small Enterprises (MSEs) are exempt from submitting prior turnover documents in public procurement, ensuring equal treatment in tender evaluations.
MSEs with valid Udyam Registration are exempt from turnover and experience criteria in bidding processes as per applicable regulations, and arbitrary disqualification on these grounds is unlawful.
Compliance with bidding conditions, specifically the demonstration of minimum average turnover, is crucial for the acceptance of bids in public procurement processes.
Interpretation of tender documents in favor of the bidder in case of ambiguity and the importance of adhering to the standards and norms laid down in the tender documents.
The court upheld the rejection of the petitioner's technical bid due to failure to meet registration requirements, emphasizing limited grounds for judicial review.
Tender evaluation must prioritize fairness, and the interpretation of criteria should avoid hyper-technical disqualifications that undermine competitive bidding processes.
Public tendering processes must adhere strictly to stipulated criteria, ensuring bidders are evaluated fairly without arbitrary disqualifications.
A Joint Venture bidder may combine the average annual turnover of its members to meet tender qualification criteria, and ambiguous tender terms cannot result in disqualification.
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