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2024 Supreme(Gau) 1796

IN THE HIGH COURT OF GAUHATI
Devashis Baruah, J.
Smt. Nabanita Das And 3 Ors - Petitioners
Versus
The Union of India And Ors - Respondents
WP(C)/382 of 2024
Decided On : 24-01-2024

Advocates:
Advocate Appeared:
For the Petitioner:Mr. D. P. Borah, Advocate
For the Respondent:Mr. M. K. Choudhury, Sr. Advocate and Mr. P. Bharadwaj, Standing Counsel

The court upheld the authority's discretion in setting tender conditions, emphasizing that judicial review should not interfere unless there is clear evidence of malafide or irrationality.

Headnote:(A) Constitution of India - Article 226 - Writ petition challenging tender conditions - Petitioners challenged Clause 14 of the tender schedule regarding maximum age of vehicles for participation in tender process - Court held that the authors of the tender document are best positioned to determine its requirements and that interference is unwarranted unless there is a clear case of malafide or perversity. (Paras 9, 10, 11, 12)

(B) Tender Law - Judicial Review - The evaluation of tenders and awarding of contracts are commercial functions, and courts should not interfere unless there is a clear violation of principles of fairness or legality. (Paras 9, 10)

Facts of the case:
Petitioners filed a writ petition against the Indian Oil Corporation Ltd. challenging the eligibility criteria for vehicles in a tender for transportation of LPG cylinders, specifically the maximum age limit of 14 years for trucks. The Petitioners argued that they had booked vehicles after the original bid submission date and were unfairly excluded from the tender process.

Findings of Court:
The Court found no merit in the Petitioners' claims, emphasizing that the tender conditions were reasonable and within the authority's discretion. The Court noted that the Petitioners did not qualify under the original tender conditions.

Issues: The main issue was whether the Court should interfere with the tender condition regarding vehicle age limits and the implications of extending the bid submission date.

Ratio Decidendi: The Court ruled that the authors of the tender document are best suited to determine its requirements, and judicial review should be limited to cases of malafide or irrationality in the tender conditions.

Result: Writ petition dismissed.

JUDGMENT :

Devashis Baruah, J.

Heard Mr. D. P. Borah, the learned counsel appearing on behalf of the Petitioners and Mr. M. K. Chodhury, the learned Senior counsel assisted by Mr. P. Bharadwaj, the learned counsel appearing on behalf of the Respondent Nos. 2 and 3. None appears on behalf of the Respondent No.1 on call.

2. The present writ petition has been filed by the Petitioners challenging the Notice Inviting e-Tender issued by the Indian Oil Corporation Ltd. for transportation of Indane LPG cylinders in vertical position on unit rate basis Ex- Sarpara Bottling Plant on the ground that Clause 14 of the tender schedule of the Notice Inviting Tender stipulates that if the last date of bid submission is extended after publication of the tender, vehicles having date of registration up to the last date of bid submission (as per original tender document) shall only be eligible for participation.

3. From the materials on record, it reveals that the Indian Oil Corporation Ltd. had issued the said Notice Inviting E-Tender in Two Bid System (Part A : Technical Bid with Commercial Terms and Part B : Price Bid) from company, partnership/proprietorship firm, Co-operative Society meeting the minimum PQC (pre-qualification criteria) for award of contract for Transportation of Indane LPG Cylinders in vertical position on unit rate basis, Ex-Sarpara Bottling Plant for a period of three years initially with a provision of two yearly extension of one year each at the same rate, terms and conditions at sole discretion of the Indian Oil Corporation.

4. It is relevant to take note of that the tender in question was published on 24.11.2023. The bid submission start date was 22.12.2023 and the last date of submission of the bid was 01.01.2024. It was also mentioned that the bid opening date was on 03.01.2024. The record further reveals that a corrigendum was issued for extension of the critical dates as per the e-Tender on 21.12.2023 whereby the bid submission date was extended to 20.01.2024 and the bid submission last date was also extended to 31.01.2024. Further to that, the bid opening date was fixed on 02.02.2024. The Petitioners herein are aggrieved with Clause 14 of the tender schedule which stipulates the maximum age of the quoted trucks. The said Clause 14 is quoted hereinbelow:

14

Maximum Age of quoted trucks

The maximum age of any quoted truck (as reckoned from the month & year of manufacturing mentioned in RTO Registration) should not exceed 14 years (concerned State office to change in case local laws of the particular location/State prescribes age/model limit even less than 14 years) as on the closing date of this tender.

If last date of bid submission is extended after publication of tender, vehicles having date of registration up to last date of bid submission (as per original tender document) shall only be eligible for participation.

5. From a perusal of the said quoted clause, it reveals that the maximum age of any quoted truck (as reckoned from the month and year of manufacturing mentioned in RTO Registration) should not exceed 14 years as on the closing date of the said tender. It was also mentioned that the concerned State Office to change in case local laws of a particular location/State prescribes age/model limit even less than 14 years. Further to that, it was made clear that if the last date of the bid submission is extended after the publication of tender, vehicles having the date of registration up to the last date of bid submission (as per the original tender document), that would be 01.01.2024 shall only be eligible for participation. It is the case of the Petitioners herein that they have booked various vehicles on 11.01.2024 and those vehicles are likely to be delivered to the Petitioners within 15 days as stated by the commercial vehicle dealer of TATA Motors in question and as such, the vehicles having the date of registration up to the last date of bid submission on 01.01.2024 deprives

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