IN THE HIGH COURT OF JUDICATURE FOR RAJASTHAN AT JODHPUR
PUSHPENDRA SINGH BHATI, J.
Dileep Trading, Through Its Proprietor Shree Prakash Soni S/o Satya Narayan Soni – Appellant
Versus
State Of Rajasthan – Respondent
S.B. Civil Writ Petition No. 9818 of 2023, S.B. Civil Writ Petition No. 10115 of 2023, S.B. Civil Writ Petition No. 10116 of 2023, S.B. Civil Writ Petition No. 9698 of 2023, S.B. Civil Writ Petition No. 9339 of 2023, S.B. Civil Writ Petition No. 9911 of 2023, S.B. Civil Writ Petition No. 9420 of 2023
Decided on : 29-08-2023
Constitution of India, 1950 - Article 226 - Rajasthan Transparency in Public Procurement Act, 2012 - Sections 4 & 6 - Tender bid - Supply of food commodities - Condition No.5 of clause II which was referred in tender bid document for supply of items mentioned in Bid at District/Tehsil/Gram Panchayat/FPS level in minimum 3 districts of any State Government Department(s)/Govt. Institution(s) in last three preceding years may kindly be declared illegal and same may kindly be quashed and set aside - Held, Core criteria for interference by Courts, which are arbitrariness, irrationality, unreasonableness, bias and malafide, are not existing in present matter, as revealed from discussion, and more particularly, by perusing list provided by Office of Deputy Registrar Cooperative Societies, Jalore (Rajasthan) in its communication of Firms, who were issued work order, it is amply clear that there are multiple bidders who qualified eligibility criteria so set forth by respondent authorities and conditions are not formulated in a manner so as to favour certain bidders or to create monopoly in favour of any of State Organization, as many private entities have also been issued work orders under tender in question; further, in condition no. 5 term ‘any state’ has been used, and thus, bidders were not bound to have tenders of only State, but were free to show work orders issued to them by other States as well, thus promoting free competition by involving bidders from all over country - Court does not find it a fit case so as to grant any relief to petitioners in petitions - Petitions are dismissed.
JUDGMENT :
1. Though the instant petitions were heard separately and on different dates, but looking into the commonality of the issues involved in all the present petitions by the petitioners-Firms, notwithstanding the marginal variation in the contextual facts, they are being decided by this common judgment.
1.1. For the purpose of the present adjudications, the facts are being taken from the above-numbered S.B. Civil Writ Petition No.9818/2021, while treating the same as a lead case.
1.2. The present petitions under Article 226 of the Constitution of India have been preferred claiming, in sum and substance, the following reliefs:
It is therefore humbly prayed that this petition for writ in the nature of mandamus may kindly be allowed and by an appropriate writ order or direction:
ii) Further, condition No.4 of clause II which referred in tender bid document heading as THE CLAUSE, TERMS & CONDITIONS requiring that the Bidder should have Average Annual Turnover of 60% of the total estimated cost of the quantity in the bid document may kindly be declared illegal and the same may kindly be quashed and set aside.
iii) the respondent authorities may kindly be directed to accept the tender bid of all the bidders, while rescheduling the date at least by extending it by 7 days with amended conditions as aforesaid.
iv) The tender bid application of the petitioner may kindly be accepted and examined without insisting upon the requirement referred in condition No. 15 of clause II.
v) In the alternative, the respondent authorities may kindly be directed to cancel the tender process and re-initiate the same while deleting the condition of work order of Rs.50 Crores in three districts of the State of Rajasthan, to ensure maximum participation.
vi) If during pendency of the writ petition, the tender process is completed, the same may kindly be quashed and set aside and the respondent may kindly be directed to invite fresh tender bid while waiving off the aforesaid conditions No.4, 5 & 15 of clause II of the tender bid document.
vii) Any other writ or direction, that may be deemed fit, just and proper, in the facts and circumstances of the case may kindly be passed in favour of the petitioner.
viii) Costs of the writ petition may also be awarded to the petitioner.
2. Briefly put, the State of Rajasthan launched “Mukhyamantri Nihshulk Annapurna Food Packet Scheme” (in short, ‘Scheme’) for supply of high quality branded food items [with FSSAI/BIS/Agmark/HACCP/FPO etc. certification(s)] in a sealed carry bag at all FPS Shops, including GSS & KVSS working as FPS in every district in the State of Rajasthan. In pursuance of the Scheme, the District Collector of each district in the State published tender notice inviting E-bid applications for supply of certain food commodities i.e. sugar, edible refined oil, coriander powder, and so on. The petitioner-Firm, being involved in the business of trading and supply of food items, participated in the tender process, for District Jalore, in pursuance of an interim order passed in the above-numbered S.B. Civil Writ Petition No. 9818/2023 (lead case). However, the petitioner is aggrieved of the conditions no.4 & 5 of Clause II of the Notice Inviting e-Bid; apart therefrom, certain petitioner(s) herein is aggrieved of condition no.15 of the said Clause II.
For ready reference, the aforesaid conditions no.4, 5 & 15 are reproduced as hereunder:
. . . . . . . .
4. Bidder should have Average Annual Turnover of Rs.67.1
Judicial review of tender conditions is restricted to cases of arbitrariness or unreasonableness, reinforcing that the authority determining eligibility criteria has the discretion and expertise in c....
Judicial review of tender conditions is limited; courts should not interfere unless actions are arbitrary, discriminatory, or mala fide, ensuring public interest is prioritized.
The court established that tender conditions set by authorities are subject to judicial review only if they are manifestly arbitrary or unreasonable, and that the authority has the discretion to dete....
The main legal point established in the judgment is the limitation of judicial review in tender matters, the need for commercial prudence in evaluating tenders, and the importance of fairness and non....
The formulation of tender conditions falls within the administrative domain of the authority, and judicial review is limited to preventing arbitrariness or favoritism. The courts cannot interfere wit....
Judicial review of tenders limited to arbitrariness or malafide; eligibility conditions upheld if public interest served with multiple qualified bidders; bid time reduction valid with approval; ineli....
The main legal point established in the judgment is that interference in tender matters is permissible only if there is a public law element involved, or if there is evidence of mala fide, arbitrarin....
The court affirmed that stringent eligibility criteria in public tender processes cannot violate statutory relaxations for Start-ups, emphasizing limited grounds for judicial review.
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