SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Article Pause Article
judgment-img

2020 Supreme(HP) 593

IN THE HIGH COURT OF HIMACHAL PRADESH, SHIMLA
Tarlok Singh Chauhan, Jyotsna Rewal Dua, JJ.
M/s Chamunda Construction Company - Appellant
Versus
State of Himachal Pradesh - Respondent
Civil Writ Petition No. 3583 of 2020
Decided On : 28-09-2020

Advocates Appeared:
B.C. Negi, Advocate, Nitin Thakur, Advocate, Ashok Sharma, Advocate, Vikas Rathore, Advocate, Vinod Thakur, Advocate, Shiv Pal Manhans, Advocate, Seema Sharma, Advocate, Bhupinder Thakur, Advocate, Yudhbir Thakur, Advocate

The State, its corporations, and agencies are bound to adhere to the norms, standards, and procedures laid down by them and cannot depart from them arbitrarily. Judicial intervention in matters of contract involving state instrumentalities requires overwhelming public interest.

Headnote:

Tender Work - Eligibility Criteria - NIT - 7, 12, 13, 15, 17, 20, 21, 23, 25, 26, 27, 29, 31, 33, 35, 37, 38

Fact of the Case:

The petitioner sought quashing of the tender work for construction of retaining walls, wire crate works, stacking works, and dredging works, and the rejection of their claim at the technical bid stage. The respondents found the petitioner ineligible due to not fulfilling the eligibility criteria stipulated in the Notice Inviting Tender (NIT).

Finding of the Court:

The court found that the petitioner did not fulfill the eligibility criteria as per the NIT and upheld the rejection of their claim at the technical bid stage.

Issues: The main issue was whether the petitioner fulfilled the eligibility criteria as per the NIT for the tender work.

Ratio Decidendi: The court held that the State, its corporations, and agencies are bound to adhere to the norms, standards, and procedures laid down by them and cannot depart from them arbitrarily. The court also emphasized the need for overwhelming public interest to justify judicial intervention in matters of contract involving state instrumentalities.

Final Decision: The court dismissed the writ petition, upholding the rejection of the petitioner's claim at the technical bid stage.

JUDGMENT

Tarlok Singh Chauhan, J. - The petitioner has sought quashing of the entire tender work of Neugal Khad along Sourav Ban Vihar in Tehsil Palampur, District Kangra, Himachal Pradesh regarding construction of retaining walls, wire crate works, stacking works and dredging works and has further sought quashing of the action of the respondents in rejecting the claim of the petitioner at the technical bid stage. In addition thereto, the petitioner has also sought quashing of the letter dated 29.08.2020, whereby the petitioner has been held to be a non-participating firm.

2. Respondent No.5 i.e. Executive Engineer, Jal Shakti Division, Palampur, on behalf of the Government of Himachal Pradesh, invited item rate bids for the aforesaid works. In all six number of bidders/firms/contractors including the petitioner firm participated in the e-tender process dated 03.08.2020.

3. The technical bid was opened online on 17.08.2020 by respondent No.5, who referred the same for further scrutiny by an Evaluation Committee at Jal Shakti Circle Dharamshala for further examination.

4. The Superintendent Engineer after examining the case referred it for further examination at Zonal Office by a technical Committee by respondent No.3, which found that the petitioner firm/contractor and another contractor/firm 'M/s Gagan Kumar Ohri' were not eligible as both did not fulfill the eligibility criteria that was stipulated in the Notice Inviting Tender (NIT).

5. Accordingly, respondent No.3 i.e. Chief Engineer, Dharamshala Zone referred the matter for further clarification to respondent No.2, who observed that the petitioner firm/contractor did not fulfill the eligibility criteria as the work done certificate relied upon by the petitioner firm/contractor was not of the participating firm, which meant that the petitioner firm/contractor consists of three partners viz; Sh. Pankaj Sharma, S/o Sh. Som Raj, R/o VPO Indora, Tehsil Indora, District Kangra, H.P.; Sh. Mohinder Sharma, S/o Sh. Ram Lal, R/o VPO Damtal, Tehsil Indora, District Kangra, Himachal Pradesh and Sh. Naresh Padiyal, S/o late Sh. Bal Krishan, R/o Village Sheela Chowk, P.O. Sidhpur, Tehsil Dharamshala, District Kangra, H.P., each having share to the extent of 40%, 40% and 20%, respectively and the work experience furnished is of Naresh Padiyal, whose share is only to the extent of 20%. Therefore, the participating firm i.e. the petitioner firm/contractor did not fulfill the criteria of having work experience of 50% of the estimated cost. Moreover, the similar work stipulated in the NIT was of 'Wire Crate Work in Flood Protection Works', whereas, the petitioner firm /contractor partner, namely, Sh. Naresh Padiyal had furnished the work experience of construction of Science Block/Buildings which were altogether different from the required 'Flood Protection Works' as stipulated in the NIT. Therefore, the petitioner firm/contractor was held ineligible and further process was undertaken to complete the codal formalities for final awarding the work in favour of the Lowest-1.

6. As per 'NIT', the definition of similar work as set out in the uploaded tender documents is as under:

"(a) Experience on similar works executed during the last seven years and details like monetary value, clients proof of satisfactory completion should be furnished before purchase of tender documents. The eligibility criteria are: Satisfactorily completed as prime contractor similar nature work, (similar nature means firm must have completed wire crate work in flood protection works and concrete work separately or together in a work of following financial values) at least as under:

1. The bidder must have completed three similar works costing each not less than 40% of the given estimated cost for which the bid is invited which instant case is Rs.2,39,54,758(minimum value).

Or

2. The bidder must have completed two similar works costing each not less than 50% of the given estimated cost for which the bid is invited which

Click Here to Read the rest of this document
1
2
3
4
5
6
7
8
9
10
11
SupremeToday Portrait Ad
supreme today icon
whatsapp-icon Back to top