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2025 Supreme(Gau) 2262

THE GAUHATI HIGH COURT, (HIGH COURT OF ASSAM, NAGALAND, MIZORAM AND ARUNACHAL PRADESH
KARDAK ETE, ANJAN MONI KALITA, JJ.
 
M/s Win Power Infra Private Limited – Appellant
Versus
M/s D and G Construction and Ors – Respondent 
WA/23 Of 2025, IA(C)/150 Of 2025
Decided On : 13-11-2025

Advocates Appeared:
For the Appellants : Dicky Panging, Tokge Darin,Doge Lona,Marge Doji,Daina Tamuk
For the Respondents: GA (AP), A Sharma,Lentsothe Sangtam,SC(Power),Lissing Perme

The court upheld that the re-evaluation of abnormally low bids by a constituted Sub-committee was proper, ensuring adherence to fair evaluation standards in public procurement processes.

Headnote:(A) Memorandum dated 18.09.2023 - Re-evaluation of abnormally low bids in public procurement - Bid of appellant was rejected initially, but subsequently justified by Sub-committee - Single Judge set aside Letter of Intent (LoI) issued to appellant, leading to this appeal - Constitutional right to a fair evaluation process for bids must be maintained, and justifications should be offered as per the governing document - Proper evaluation process conducted by Sub-committee; therefore, no violation of Article 14. (Paras 12, 39, 82)

(B) Writ Appeal - Jurisdiction of appellate court in contract matters concerning public procurement - Court should not interfere unless the decision-making process has issues of arbitrariness or illegality. (Paras 11, 69)

Facts of the case:
Appellant's bid was initially deemed abnormally low and rejected without proper justification. Following complaints, a Sub-committee was formed to re-evaluate the bids, including the appellant's, leading to a favorable re-assessment. (Paras 6, 10)

Findings of Court:
The Single Judge erred in setting aside the LoI based on the evaluation by the Sub-committee, which adhered to the tender conditions. The subsequent recommendation by the Sub-committee for the appellant’s bid was justified pursuant to the guidelines. (Paras 60, 80)

Issues: Whether proper protocols were followed in evaluating the bid of the appellant; whether the Single Judge's decision was justified in setting aside the LoI. (Paras 39, 54)

Ratio Decidendi: The Sub-committee's re-evaluation adhered to the procedural mandates and was not arbitrary, fulfilling the obligations to seek justifications for abnormally low bids, supporting the principle of fair competition. (Paras 36, 57)

Result: Appeals allowed; the decision of the Single Judge is set aside, allowing the work to be allotted to the appellant accordingly.

Table of Content
1. tender process and bid evaluation. (Para 3 , 4 , 5 , 6 , 7 , 8 , 9 , 10)
2. arguments regarding bid rejection and tender evaluation. (Para 12 , 14 , 15 , 16)
3. analysis of procedural compliance and tender guidelines. (Para 31 , 32 , 33 , 34 , 35)
4. review of justifications provided by bidders for low bids. (Para 36 , 38 , 39 , 40 , 41)
5. final order and directives for bid allotment. (Para 81 , 82 , 83)

JUDGMENT :

ANJAN MONI KALITA, J.

1.Heard Mr. D. Das, learned Senior Counsel assisted by Mr. R. B. Phukan and Mr. D. Panging, learned counsels for the appellant. Also heard Mr. P. K. Tiwari, learned Senior Counsel assisted by Mr. A. Sharma, learned counsel for Respondent No. 1 as well as Mr. L. Perme, learned Standing counsel for the Power Department representing respondent Nos. 2 to 9.

2. The instant intra-Court writ appeal has been filed by the appellant being aggrieved and dissatisfied with the judgment and order dated 23.05.2025 passed by the learned Single Judge in WP (C) No. 48(AP)/2025.

3. The facts of the case as projected in the instant writ appeal are that a Notice Inviting Tender (for short, ‘NIT’) was issued on 17.01.2024 by the Superintending Engineer, Electrical, Arunachal Pradesh Electrical Division No. 2, Department of Power, Pasighat for development of distribution infrastructure at East Siang District of Arunachal Pradesh under Revamped Reforms-based and Results-linked, Distribution Sector Scheme on turnkey basis at the total estimated cost of the project at Rs. 65,46,10,958.44/- (Rupees Sixty Five Crore Forty Six Lakh Ten Thousand Nine Hundred Fifty Eight Forty Four Paisa).

4. Once the interested bidders procured the Standard Bidding Documents (SBD), a pre-bid meeting was held on 25.01.2024 in the office chamber of the aforesaid Superintending Engineer, wherein, all the prospective bidders were present. In the aforesaid meeting, it was decided that justified bid price range shall be as per the Memorandum dated 18.09.2023, issued by the Secretary to the Government of Arunachal Pradesh, Power Department. On a query made by the bidders, it was intimated that while evaluating the price bids, Clause No. 36 under Section 3: Instructions to Bidders and Bid Data Sheet of SBD shall also be considered.

5. The last date of submission of the bid was on 01.02.2024, wherein, 7 (seven) bidders including the appellant as well as Respondent No. 1 submitted their respective bids. The techno- commercial bid was opened on 01.02.2024, wherein, 3 (three) bidders were found to be techno-commercially qualified. The appellant, Respondent No. 1 and one M/s Techno-Power Enterprises Pvt. Ltd. (for short, ‘Techno Power’) were qualified in the techno-commercial bid. Subsequently, the price bid of the techno-commercially qualified three bidders were opened on 21.02.2024, wherein, the appellant’s price was found to be abnormally low and the price bid of M/s Techno Power was declared as L1. Consequently, vide a letter dated 12.03.2024, the appellant was intimated by the office of the Superintending Engineer that it’s bid had been rejected due to the ground that it was abnormally low. Thereafter, the price bid of M/s Techno Power was recommended for acceptance and approval in terms of the aforesaid Government Memorandum dated 18.09.2023.

6. Immediately after receipt of the rejection, on the very same day, the appellant submitted a letter dated 12.03.2024, thereby requested the Superintending Engineer (E) to provide an opportunity to the appellant for submission of price justification as per the SBD. Thereafter, on 14.03.2024, a letter was issued by the Chief Engineer (Power), Central Electrical Zone, DoP, Itanagar to the Superintending Engineer (E), DoP, Pasighat stating that it had come to his attention that the firm quoting abnormally low amount had not been given any opportunity to justify their low quoted rate under Clause 36.2 of the SBD. It mentioned that it appeared that the tender opening committee rejected the bid under Clau

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