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2025 Supreme(Gau) 786

THE GAUHATI HIGH COURT (HIGH COURT OF ASSAM, NAGALAND, MIZORAM AND ARUNACHAL PRADESH)
MICHAEL ZOTHANKHUMA, J.
M/s Maa Manosha Trade Com. - Appellant
Vs.
The State Of Assam And Ors. - Respondent
WP(C) No. 5465 Of 2023
Decided On : 17-06-2025


Advocates:
Advocate Appeared:
For the Appellant : Mr. A. Dhar
For the Respondent: Mr. I. Borthakur, Mr. S. Islam

Essential conditions of a tender must be strictly enforced; deviations must be fair and applicable to all bidders to avoid discrimination.

Headnote:(A) Tendering Process - Clauses 1.9 and 1.10 of e-tender document - The petitioner challenges the evaluation process alleging that the respondent no. 3 and 4 did not comply with essential conditions for technical responsiveness. The court found that despite non-compliance, respondents were deemed technically qualified, violating equal treatment principles and established conditions. (Paras 6, 9, 16, 20)

(B) Administrative Discretion in Tender Processes - Essential conditions must be rigidly applied, relaxation must not lead to arbitrary favoritism. Judicial review ensures against irrational compliance deviations. (Paras 18, 19)

Facts of the case:
The petitioner contended the technical bids of two bidders were wrongly accepted due to not meeting minimum annual turnover and tax return requirements, arguing that this constituted discrimination and unfair advantage. (Paras 2, 5, 6)

Findings of Court:
The court determined the tender committee's decision to qualify the disputed bids was arbitrary and not compliant with essential conditions set out in the tender notice. (Paras 20)

Issues: The court addressed whether the tendering authority failed to adhere to essential conditions, leading to arbitrary decision-making favoring certain bidders. (Paras 8, 17)

Ratio Decidendi: The court emphasized that essential conditions in tender processes must be upheld uniformly, without relaxation that gives an unfair edge to specific parties, reaffirming the principles against bias in administrative decision-making. (Paras 18, 19)

Result: The resolution declaring the technical bids of the respondents no. 3 and 4 as responsive was set aside, remanding the matter back to the Tender Committee for reconsideration. (Paras 20, 21)

Table of Content
1. bidder's qualifications and the compliance of tender requirements. (Para 2 , 4 , 5 , 6)
2. legal standard for evaluating deviations from tender conditions. (Para 8 , 17 , 18)
3. arbitrariness in evaluation of bids and related tender conditions. (Para 9 , 10 , 14 , 19)

JUDGMENT :

MICHAEL ZOTHANKHUMA, J.

1. Heard Mr. A. Dhar learned counsel for the petitioner. Also heard Mr. I. Borthakur, learned counsel for the respondent no.2 and Mr. S. Islam, learned counsel for the respondent no.3.

2. The petitioner has preferred the writ petition on the ground that the tendering authority, i.e. the respondent no. 2, has deviated from the tender condition, in declaring the respondent no. 3 and the respondent no. 4 as technically responsive bidders, along with the petitioner. By referring to Clause 1.9, Clause 1.10, Clause 2.2 & Clause 2.4 of the Tender Document, the petitioner has contended that the respondent no. 3 and the respondent no. 4 did not satisfy the above conditions. Despite such non-compliance, the tendering authority has declared the Technical Bids of the said two respondents as responsive bids.

3. Clause nos.1.9, 1.10, 1.16, 2.2, 2.4 and 2.6 of the e-tender document are reproduced hereinbelow, as follows :

“1.9 Bidder must have minimum annual turnover of Rs.1.00 Crore or above for each of the last 3 financial years 2020-2021, 2021–2022 and 2022–2023.

1.10 Bidder should have up-to-date Income Tax Return for the financial year 2019–2020, 2020–2021 and 2021–2022.

1.16 All eligible/Interested Bidders are required to download Tender documents from ASTPPC Ltd's website http://assamtextbook.gov.in or Assam Govt.'s e-procurement portal which is to be uploaded along with all supporting documents in the e-procurement portal after filling up,

2.2 In case of Registered firms, the bidders have to produce one Certificate from reputed Waste Paper Re-Cycling Industry that the party is authorized to lift old/used paper/ books etc. and they have to submit certificate from Waste Paper processing Mill stating that the vendor is a regular supplier of Obsolete Books/waste papers and other printed paper materials for the last 3 consecutive financial years with a minimum value of Rs. 1.00 Crore per year.

2.4 In case of the Bidders being other than waste paper processing Mills, they should have experience of lifting Obsolete Books/waste papers and other printed paper materials from Government Organizations/Universities/State Educational Boards and Councils/ other reputed organizations etc. and submit supporting documents in this regard.

However, in case of waste paper processing Mills, no experience is required.

2.6 After online submission of the E-Tender (both the Technical and Commercial Bids), the parties have to submit hard copies of the Technical Bid along with all supporting documents in a sealed envelope super scribing as "Technical Bid Document of E-Tender No. ATC/SM/23/2018 (pt) dated 12-05-2023" which is to be submitted to The Corporation's Head Office at Panbazar, Guwahati before the scheduled time of opening of the Technical Bid.”

4. The petitioner’s counsel submits that the Financial Bid of the respondent no.3 was the highest (H1), while the Financial Bid of the respondent no.4 was the second highest (H2). Another tenderer, who is not a party to this case, i.e. “Jumbo Roofings and Tiles” was having the 3rd highest Financial Bid (H3), while the petitioner’s Financial Bid was number 4 (H4). The bids of the four highest bidders, out of eight bidders, are as follows:-

H1 BidderM/s R.J. Enterprise (respondent no.3)Rs.40,01,550.00 (Rupees forty lakh one thousand five hundred fifty only)
H2 BidderM/s Tara and Ratnamouli (respondent no.4)Rs.37,61,050.00 (Rupees thirty seven l akh sixty one thousand fifty only)
H3 BidderM/s Jumbo Roofings and TilesRs.28,02,935.00 (Rupees twenty e i ght lakh two thousand nine hundred thirty five only)
H4 BidderM/s Maa Monasha Trade Com.(petitioner)Rs.26,91,750 (Rupees twenty six l akhs ninety one thousand seven hun




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