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V. G. ARUN
M/s. PGCCPL and Aryacon Consortium – Appellant
Versus
Kerala State Electricity Board Limited – Respondent
JUDGMENT :
V.G. ARUN, J.
1. The Kerala State Electricity Board Limited/second respondent, invited tenders for the execution of Civil and Hydro Mechanical works of Upper Sengulam Hydro Electric Project vide Ext.P1 e-tender notice dated 3.5.2022, with the Probable Amount of Contract (PAC) fixed at Rs. 1,75,60,70,410/-. The first petitioner and respondents 3 and 4 were pre-qualified in the tender and Ext.P4 Note containing the details of the pre-qualified bidders was published on 7.10.2022. The price bids were opened on 10.10.2022 and the third respondent declared as the lowest bidder, as evidenced by Ext.P6, the BOQ summary details. As the petitioners had serious doubts about the third respondent's qualification, the materials submitted by the third respondent in support of its bid was downloaded from the website. A scrutiny of the documents proved the petitioners' suspicion to be correct. It came to light that the third respondent had failed to comply with Clause 26.2.1(c), Clause 3.1.6 and 27.1 of the instructions to the bidders forming part of Ext.P1 Notice Inviting Tender. Hence, this writ petition seeking the following reliefs:
Section 187 of Act, 1961 deals with Change in constitution of a firm.
Point of law: Entire process of awarding the contract by respondent No.2 in favour of Respondent No.3 cannot be accepted as valid
Power of judicial review exercised by High Court under Article 226 of Constitution of India is to find out whether decision of State was manifestly arbitrary or unjust.
Tender - Tender conditions are required to be read as provided in the tender document and if there are two views or construction possible than the view of the authority interpreting the tender docume....
Judicial review in tender matters is limited; courts should not interfere unless actions are arbitrary, discriminatory, or biased.
The court's decision emphasized the importance of evaluating technical qualifications in the tender process and the need to address any mala fides or bias.
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