2017 Supreme(HP) 106
IN THE HIGH COURT OF HIMACHAL PRADESH, SHIMLA
MANSOOR AHMAD MIR, SANDEEP SHARMA, JJ.
M/s. Zenith Event and Service and another - Petitioners
Versus
State of H.P. and others - Respondents
CWP No. 359 of 2017
CWP No. 406 of 2017
Decided on : 19-04-2017.
Advocate Appeared:
For the Petitioner:Mr. R.K. Bawa, Senior Advocate with Mr. Jeevesh Sharma, Advocate, Mr. C.N. Singh, Advocate.
For the Respondent:Mr. Shrawan Dogra, Advocate General with Mr. Anup Rattan and Mr. Romesh Verma, Additional Advocate Generals and Mr. J.K. Verma, Deputy Advocate General, Ms. Archna Dutt, Advocate, Ms. Seema K. Guleria, Advocate.
Courts should not interfere in contractual matters unless the decision-making process was mala fide or made to favour someone, or the decision was so arbitrary that no man of ordinary prudence could have reached it.
Headnote:
Tender Document - Sanitation Services - [Eligibility of Bidders: (Essential Conditions) 1. Average annual financial turnover of the bidder during the last three years, ending 31st March of previous financial year should be as follows: * Up to 50 bedded hospital - Rs.25-00 Lac (Rupees Twenty Lakh) * 51 to 100 bedded hospital - Rs. 50-00 Lac (Rupees Fifty Lacs) * 101 to 250 bedded hospital- Rs.75-00 Lac (Rupees Seventy Five Lacs) * 251 to above bedded hospital -Rs.1.00 Crore (One Crore)] - The court discussed the revised turnovers for health institutions with different bed capacities and found that the decision to revise the turnovers was made in the public interest and was not arbitrary or discriminatory.
Fact of the Case:
The petitioners challenged the eligibility conditions for sanitation services tender, arguing that the annual financial turnover requirements were arbitrary and mala fide.
Finding of the Court:
The court found that the decision to revise the turnovers was made in the public interest and was not arbitrary or discriminatory.
Issues: The main issue was the challenge to the eligibility conditions for sanitation services tender, specifically the annual financial turnover requirements.
Ratio Decidendi: The court held that it would not interfere in contractual matters unless the decision-making process was mala fide or made to favour someone, or the decision was so arbitrary that no man of ordinary prudence could have reached it.
Final Decision: The court dismissed the writ petitions, finding that the decision to revise the turnovers was made in the public interest and was not arbitrary or discriminatory.
Sandeep Sharma, J.
Since common questions of law and facts are involved in these petitions, both were heard together and are being disposed of by this common judgment.
2. Petitioners, in CWP No. 359 of 2017, have sought following main reliefs:
"(i) To set-aside the condition of having average annual financial turnover of the bidder during last three years, ending 31st March of previous financial year to be Rs. One crore for providing sanitation services to 251 and above bedded hospitals, as provided in the eligibility of bidders (essential condition) of tender form 2017 i.e. Annexure P- 13.
(ii) To direct the respondents not to change the eligibility criteria/essential condition as contained in the tender document of the previous year i.e. 2016, which provides that the average annual financial turnover of the bidders for the last three years, ending 31st March of previous financial year to Rs.30 lac for providing sanitation services to 150 and above bedded hospitals.
(iii) To direct the respondents to allow the petitioner-firm to participate in the tender process for providing sanitation services to 250 and above bedded hospitals in the State of H.P., for the year, 2017"
3. Similarly, petitioners, in CWP No. 406 of 2017, have sought following main relief:
"Issue a writ of Certiorari, mandamus or appropriate writ order or direction as this Hon'ble Court deems fit for quashing the tender Process as well as the Tender document 2017 (Annexure P-4), for all intents and purposes and direct the respondent to reframe the terms and conditions of Sanitation tender keeping in view the local, ground realities into consideration."
4. Facts, common to both the petitions, are that the respondent-State initiated tendering process for sanitation contract of health institutions for the year 2017-18 in accordance with the Revised Tender Document 2017. The Chief Medical Officers and Medical Superintendents of the hospitals all over the State were asked to float tenders in respect of health institutions of their Districts/Hospitals. The tendering process was to be completed by 15th March, 2017. The tender document which was uploaded on the official website, provides following 'eligibility conditions' for the prospective bidders:
"Eligibility of Bidders: (Essential Conditions)
1. Average annual financial turnover of the bidder during the last three years, ending 31st March of previous financial year should be as follows:
* Up to 50 bedded hospital - Rs.25-00 Lac (Rupees Twenty Lakh)
* 51 to 100 bedded hospital - Rs. 50-00 Lac (Rupees Fifty Lacs)
* 101 to 250 bedded hospital- Rs.75-00 Lac (Rupees Seventy Five Lacs)
* 251 to above bedded hospital -Rs.1.00 Crore (One Crore)
The financial statement showing the turnover should be authenticated by Chartered Accountant (CA) & should also be accompanied by an affidavit to that effect that the firm/contractor have never been blacklisted.
2. Minimum two years experience for providing sanitation services satisfactorily in Govt./Corporate sector Hospitals/ Medical colleges. (If the bidder is bidding up to 100 bedded hospital and is providing experience of private hospital, it should be minimum of 50 bedded hospital, similarly if for more than 100 bedded hospital the experience should have been at least from the hospital of more than 100 bedded private hospital)
3. The Service provider should be registered firm or company (proprietary/ Partnership /Company/ corporation/ legal entity/ Cooperative Society) Copy of registration certificate confirming Registration NO. of the firm must be enclosed. The company/Firm must be Registered with HP Govt. and office must be situated in Himachal Pradesh.
4. Copy of registration certificate confirming Registration NO. of the firm must be enclosed.
5. Licence No. Under Contract Labour Act. The service Provider will provide an appropriate labour licence issued by competent authorities for carrying out sanitation service/cleaning activity.
(Proof of license issued by competent authority i