THE HIGH COURT OF GAUHATI (HIGH COURT OF ASSAM, NAGALAND, MIZORAM AND ARUNACHAL PRADESH
MICHAEL ZOTHANKHUMA, J.
Tribeni Construction Ltd - Appellant
Versus
M/s Badri Rai And Company And 3 Ors - Respondent
Review.Pet. 170 / 2024
Decided On : 28-02-2025
(A) NIT dated 23.02.2024 - Bid Evaluation Committee - Technical Bid disqualification - Writ petitioner disqualified for misrepresentation of work experience credentials under Clause 2 of the ITT - Review petition allowed due to lack of hearing before the initial order - Court held that the petitioner must demonstrate work experience 'in his own name' to qualify - The review petitioner was not heard in the earlier proceedings, necessitating reconsideration of the technical bid. (Paras 11 , 12 , 30 , 44 )
(B) Legal principles of tender evaluation - The authority issuing a tender has the right to enforce its conditions strictly - The interpretation of 'in his own name' must be adhered to as per the tender documents - Courts should exercise restraint in interfering with tender decisions unless arbitrary. (Paras 37 , 42 )
Facts of the case:
The writ petitioner participated in a tender process but was disqualified for not meeting work experience criteria as a sub-contractor. The review petitioner claimed the decision was arbitrary and sought a review after not being heard in the initial ruling.
Findings of Court:
The Court found that the review petitioner had not been heard in the previous proceedings, thus allowing the review and requiring reconsideration of the technical bid.
Issues: Whether the writ petitioner met the work experience criteria 'in his own name' and the implications of not being heard in the earlier decision.
Ratio Decidendi: The Court emphasized the necessity of hearing all parties involved and reaffirmed that work experience must be demonstrated 'in his own name' as per the tender requirements.
Result: Review petition allowed; writ petitions dismissed.
JUDGMENT :
MICHAEL ZOTHANKHUMA, J.
1. Heard Mr. I. Chowdhury, learned Senior Counsel assisted by Mr. T. Das, learned counsel for the review petitioner in Review Petition No.170/2024 arising out of order dated 29.08.2024 allowing WP(C) No. 4034/2024. Also heard Mr. K.N. Choudhury, learned Senior Counsel assisted by Mr. P. Buttan, learned counsel for the writ petitioner in WP(C) 4789/2024 and respondent no.1 in the review petition. Mr. B. Gogoi, learned counsel appears for the PWD in Review Petition no.170/2024 and WP(C) 4789/2024.
2. The two cases are being disposed of by this common judgment and order in view of the fact that the issue that has arisen pertains to the NIT dated 23.02.2024, for “Construction of Dedicated Training, Monitoring, Administrative Centre “Swasthya Bhawan” (2B+G+8) Storeys at Sixmile, Guwahati (Assam) involving Civil, MEP Works, External Development Works, Ancillary Buildings and including Operation & Maintenance (O&M).”
3. The facts of the case is that the review petitioner and the writ petitioner had both participated in the NIT for the above contract work, by submitting their bid documents before the last date fixed for submission of bids, that was 15.03.2024. The Technical Bids of the tenderers were then opened on 14.06.2024.
4. The writ petitioner “M/s Badri Rai & Company’s” Technical Bid was disqualified on 01.08.2024, vide the Bid Evaluation Committee meeting minutes dated 01.08.2024, on the ground that discrepancies were found between the submitted credential documents in respect of the work experience criteria required under Clause 2 of the Instructions to Tenderers (ITT). The Bid Evaluation Committee having come to a finding that the writ petitioner had misrepresented facts in their bid documents, the writ petitioner’s Technical Bid was disqualified as per Clause 6(a) of the ITT.
The relevant portion of the bid evaluation committee meeting minutes dated 01.08.2024 states as follows:
5. The Financial Bids of the remaining valid tenderers were opened on 05.08.2024, wherein the bid of the review petitioner, i.e. “M/s Tribeni Construction Ltd.” was found to be the lowest, i.e., L1.
6. The writ petitioner being aggrieved by the disqualification of it’s Technical Bid, vide the Bid Evaluation Committee meeting minutes dated 01.08.2024, put the same to challenge vide WP(C) 4034/2024. The writ petitioner’s case in WP(C) 4034/2024 was that the writ petitioner had all the requisite experience criteria required of a valid tenderer, as the writ petitioner fulfilled the requirements of Clause 2(a)(i), 2(b)(i) and 2(b)(ii) of the work experience clause provided in the qualifying criteria for the works contracts under Clause-2 of the ITT.
7. The work experience required of a tenderer in terms of Clause 2 states as follows:-
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A bidder must demonstrate work experience 'in his own name' as per tender requirements; failure to hear a necessary party warrants review.
The eligibility for tender participation relies strictly on interpreted criteria by the issuer unless proven arbitrary or biased, excluding warranty periods from work experience.
The court emphasized the limited scope of judicial review in contractual matters and the deference to be given to the interpretation of the tender document by the author. It also clarified that the w....
The court upheld the authority's discretion in evaluating tender bids, emphasizing the need for compliance with mandatory conditions and the absence of arbitrariness in disqualification decisions.
The decision of the employer in interpreting the conditions of eligibility in a tender document must be respected unless it is shown to be arbitrary, outrageous, and highly unreasonable.
Judicial review of tender processes is limited; courts should respect the authority's discretion unless there is clear evidence of arbitrariness or irrationality.
The court affirmed that in tender matters, the awarding authority has discretion to assess qualifications, and judicial review is limited to ensuring legality and fairness, without substituting the a....
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