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2025 Supreme(Gau) 9

IN THE GAUHATI HIGH COURT (HIGH COURT OFASSAM, NAGALAND, MIZORAM AND ARUNACHAL PRADESH)
KARDAK ETE, J.
M/s Orion Health Foods Private Limited – Appellant
Versus
The State of AP and 6 Ors – Respondent
WP(C)/227/2024, WP(C)/93/2024, WP(C)/105/2024, WP(C)/115/2024
Decided on : 03-01-2025

Advocates:
Advocate Appeared:
For the Appellant :Mr. G.N. Sahewalla, Sr. Advocate, Mr. Gallen Taloh, Mr. A. K. Sahewalla, Mr. D Goswami.
For the Respondents:Mr. R.H. Nabam, Addl. Advocate General, AP, N Aditya,
Nani Anju, Binter Picha, Mr. D Das, Sr. Advocate, Ms. Irmala Das.

The court upheld the validity of the tendering authority's criteria, emphasizing that terms are not subject to judicial review unless proven arbitrary or unreasonable.

Headnote:(A) Tendering Process - Eligibility Criteria - The petitioners challenged the arbitrary and unreasonable qualification points in the NIeT dated 20.02.2024 for supply of Ready to Eat food items, alleging that clauses were designed to favor certain bidders (Paras 3, 4, 12, 33).

(B) Judicial Review - The court emphasized that it should refrain from interfering in tender matters unless terms are manifestly arbitrary or unreasonable (Paras 48, 52).

Facts of the case:
The petitioners contested the eligibility criteria and qualification points in the NIeT for supplying food items, claiming they were arbitrary and discriminatory (Paras 5, 6, 12).

Findings of Court:
The court found no merit in the petitioners' claims, stating the terms were reasonable and did not favor any particular bidder (Paras 53, 54).

Issues: The main issues included the reasonableness of the qualification points and whether they were designed to favor specific bidders (Paras 32, 52).

Ratio Decidendi: The court ruled that the tendering authority has the discretion to set terms and conditions, which should not be interfered with unless proven arbitrary or unreasonable (Paras 48, 52).

Result: Writ petitions dismissed.

JUDGMENT :

Heard Mr. G. N. Sahewalla, learned Senior Counsel assisted by Mr. A. K. Sahewalla, learned counsel for the petitioner in WP(C)/115(AP)/2024; Mr. S. Dutta, learned Senior Counsel assisted by Ms. I. Das, learned counsel and Ms. N. Anju, learned counsel for the petitioners in WP(C)/93(AP)/2024, WP(C)/105(AP)/2024 and WP(C)/227(AP)/2024 and respondent No. 5 in WP(C)/115(AP)/2024. Also heard Mr. R. H. Nabam, learned Additional Advocate General assisted by Ms. P. Pangu, learned Government Advocate for the State respondents in all the writ petitions. None appears for the private respondent Nos. 6 & 7, despite service of notices.

2. In view of the similar factual background and law, present bunch of writ petitions were heard analogously and the same are disposed of by this common judgment and order.

3. By filing these Writ Petitions, the petitioners have put to challenge the terms and conditions incorporating qualification points as Annexure-B pertaining to Notice inviting e-Tender bearing no. DWCD-14/4/2021[C-11400], dated 20.02.2024, issued by the Secretary, Women & Child Development Department, Government of Arunachal Pradesh, inviting bids from the manufacturer of repute with past experience in the field and sound financial capability for supply of Ready to Eat (RTE) food items, in respect of the : (1) Rice and Pulse Based Energy Food (RTE) fortified with minerals and vitamins; (2) Kheer (Ready to Eat) as energy dense food fortified with minerals and vitamins and (3) Puffed Rice fortified with minerals and Vitamins.

4. The brief facts of the case are that the Secretary, Women & Child Development Department, Government of Arunachal Pradesh issued a Notice inviting e-Tender bearing no. DWCD-14/4/2021[C-11400] dated 20.02.2024, (hereinafter referred to as NIeT in short) in a two bid system, i.e. Technical and Price/Financial bid separately, inviting manufacturer of repute with past experience in the field and sound financial capability for supply of Ready to Eat (RTE) food items, namely : (1) Rice and Pulse Based Energy Food (RTE) fortified with minerals and vitamins; (2) Kheer (Ready to Eat) as energy dense food fortified with minerals and vitamins and (3) Puffed Rice Fortified with minerals and Vitamins, for an estimated cost of Rs.1000 (one thousand) Lakhs. The submission of the bid started from 23.02.2024 and the last date for submission of tender was 14.03.2024, up to 4:00 p.m. The date for opening of the tender (technical bid) was 15.03.2024. It is stipulated that the financial bid(s) of those tenderers, qualified in technical bid would only be opened and the date of opening would be intimated within one week for opening of the technical bid in the official website.

5. In WP(C)/115(AP)/2024, the petitioner being a reputed company and the financial state of the Art food processing company based in Meghalaya and being manufacturer of micronutrient fortified energy dense food products, especially suitable for malnourished and severely malnourished infants and children, adolescent girls and pregnant and lactating mothers, decided to participate in the tender process and accordingly, downloaded the tender documents from the official website. On perusal of the documents, according to the petitioner, it is found that in Part-I of the bid documents, two points appearing at serial No.5 and serial No.8 of Annexure-B, amongst others are absolutely arbitrary and without any justification. The petitioner contended that the tender has provided with the eligibility criteria in clause 20, wherein the chart providing qualification points are absolutely arbitrary and without any justification inasmuch as, in a tender the eligibility criteria is the main question and as such, the chart providing qualification points is liable to be set aside and quashed.

6. The further case of the petitioner is that in the year 2018, the same respondent Department in the State of Arunachal Pradesh had floated a tender where there was no point system as intro

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