IN THE HIGH COURT OF KERALA AT ERNAKULAM
Nitin Jamdar, C.J., S.Manu, J.
V.M.Asharaf – Petitioner
Versus
State of Kerala Represented By Secretary To Government, Department Of Irrigation and ors. – Respondents
WA NO. 1811 of 2024
Decided On : 06-02-2025
(A) Tendering Process - Ambiguity in eligibility criteria - Notice inviting tender dated 23 January 2024 was found vague regarding the classification of bidders as 'CIVIL A' - The court emphasized the need for clarity in tender conditions to ensure a level playing field for all bidders - The ambiguity led to potential discrimination against bidders from other states. (Paras 10, 12, 16)
(B) Judicial Review - The court reiterated that judicial review applies to governmental actions in tendering processes to prevent arbitrariness and ensure fairness - The vagueness in the tender notice was deemed unconstitutional as it violated the principles of non-discrimination and fairness under Article 14 of the Constitution. (Paras 15, 16)
Facts of the case:
The Appellant challenged the acceptance of the 4th Respondent's bid in a tender for renovation work, arguing that the 4th Respondent did not meet the eligibility criteria as a 'CIVIL A' contractor in Kerala. The 4th Respondent contended that the tender notice did not specify such requirements for out-of-state bidders.
Findings of Court:
The court found the tender notice too vague regarding eligibility criteria, leading to potential discrimination and unfairness in the bidding process.
Issues: The main issues were the clarity of eligibility criteria for bidders from other states and whether the tender process was fair and non-discriminatory.
Ratio Decidendi: The court ruled that the ambiguity in the tender notice violated the principles of fairness and non-discrimination, necessitating a fresh tender process.
Result: The impugned judgment was set aside, and the notice inviting tender was annulled.
| Table of Content |
|---|
| 1. appellant's contention on qualification (Para 3) |
| 2. government pleader's defense (Para 4 , 5) |
| 3. ambiguity in tender notice (Para 6 , 7 , 8 , 9) |
| 4. need for clarity in tendering (Para 10 , 11 , 12 , 13 , 14 , 15 , 17) |
| 5. judgment set aside (Para 16) |
JUDGMENT :
(S. MANU, J.)
The 2nd Respondent issued notice inviting tender for the work “REBUILD-RKI-Flood 2018 – Renovation of Shutters and Hoisting mechanism of Enamakkal Regulator (Mechanical works)- General Mechanical Work” on 23 January 2024. Bids were invited from “the Registered Bidders of Kerala PWD or from any State or Central Government Engineering Departments which are having similar functionalities like Kerala PWD.” Estimated cost of the work as per the notice is Rs.3,83,88,277/-. Against the column No.8- classification of bidder, in the notice it was specified as “CIVIL-A”. Part I of the standard bid document of the Irrigation Department contains instructions to the bidders. Clause 1.3 deals with eligible bidders. Clause 1.3.1 reads thus:- “A Bidder shall be a registered contractor in Kerala Public Works Department or from any State or Central Government Engineering Departments which are having similar functionalities like Kerala PWD in the required category as specified in the NIT.”
2. Appellant and the 4th Respondent responded to the notice inviting tender and submitted their bids. The 2nd Respondent by proceedings dated 27 February 2024 found that the 4th Respondent is qualified for financial evaluation. Appellant, on 12 February 2024, submitted a representation to the 2nd Respondent stating that the 4th Respondent is not qualified in terms of the notice inviting tender and also of Ext.P3 Government Order dated 29 July 2022. Alleging that the 4th Respondent was not qualified and his bid should have been rejected, the Appellant approached this Court in W.P. (C)No.8273/2024. The 4th Respondent entered appearance and filed counter affidavit refuting the contentions of the Appellant. The 2nd Respondent also filed counter affidavit justifying the selection of the 4th Respondent. The learned Single Judge, after hearing the respective counsel appearing for the parties and the learned Government Pleader dismissed the writ petition by the impugned judgment. Aggrieved by the dismissal of the writ petition Appellant has filed this intra-court appeal.
3. Mr.Jacob Sebastian, the learned counsel for the Appellant contended that the 4th Respondent was not qualified for the work and the learned Single Judge has not appreciated the contentions of the Appellant in a proper manner. According to the Appellant, the 4th Respondent submitted the bid as an individual. He is not a contractor registered as 'A' Class contractor in the State of Kerala. He has not executed any work of similar magnitude in the past and does not have required infrastructure or experience to execute a work in the nature of the one tendered. Relying upon the judgment in Municipal Corporation, Ujjain & another v. BVG India Ltd. & others, [(2018) 5 SCC 462] the learned counsel contended that a bidder submitting the bid in individual capacity without any partners, consortium or joint venture cannot rely upon the technical qualification of any third party for satisfying the required qualification. It was argued that the 4th Respondent has only a Class IV registration in Maharashtra and registration without any classification in Madhya Pradesh. The learned counsel pointed out that the experience certificate submitted by the 4th Respondent is of a joint venture. It is further submitted that the 4th Respondent neither has registration as CIVIL-A contractor in the State of Kerala nor does he satisfy the eligibility criteria for category CIVIL-A. The Appellant therefore contends that the 2nd Respondent has committed grave irregularity by accepting the bid of the 4th Respondent. According to the Appellant, he being a Class-A contractor satisfying the eligibility criteria ought to have been awarded the work as the 4t
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Tender notices must clearly define eligibility criteria to ensure fairness and prevent discrimination among bidders, particularly when involving contractors from different states.
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