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2021 Supreme(J&K) 339

IN THE HIGH COURT OF JAMMU AND KASHMIR AT SRINAGAR
Sanjeev Kumar, J.
Zahoor and Company - Appellants
Vs.
UT of Jammu and Kashmir and Ors. - Respondent
WP (C) No. 2077/2020, CM Nos. 6569 and 6570 of 2020
Decided On : 15-01-2021

Advocates Appeared:
For the Appellant :R.A. Jan, Sr. Advocate and Taha Khalil, Advocate
For the Respondents Defendant: M.A. Chashoo, AAG

The faulty application of the value of 'N' in the calculation of available bid capacity led to the illegal and arbitrary rejection of the petitioner's bid.

Headnote:

Tender - Bid Rejection - Clause 4.7, Instructions to the Bidders - [AAY Class Contractor] - [Construction of Residential Flats] - [Clause 4.7 of the Instructions to the Bidders, contained in Standard Bidding Document] - The court discussed the rejection of the petitioner's bid as 'non-responsive' based on the calculation of available bid capacity using Clause 4.7. The court highlighted the dispute regarding the value of 'N' and the past practice of working out the value of 'N' in similar cases. The court found the deviation from the consistent practice to be mala fide, arbitrary, and aimed at excluding the petitioner from competition. The faulty application of the value of 'N' deprived the petitioner of the right to participate in the financial bid.

Fact of the Case:

The petitioner, an 'AAY' Class registered Contractor, challenged the rejection of their bid as 'non-responsive' for the construction of residential flats. The petitioner contended that the rejection was arbitrary and contrary to the terms and conditions of the NIT. The respondents justified the rejection based on the calculation of available bid capacity.

Finding of the Court:

The court found the rejection of the petitioner's bid to be illegal, arbitrary, and violative of Article 14 of the Constitution of India. However, no relief was granted to the petitioner due to their delay in approaching the court and the creation of 3rd party rights. The petitioner was advised to file a fresh petition or claim compensation for wrongful exclusion from the tendering process.

Issues: The issues revolved around the rejection of the petitioner's bid as 'non-responsive' and the calculation of available bid capacity using Clause 4.7 of the Instructions to the Bidders.

Ratio Decidendi: The court held that the rejection of the petitioner's bid was illegal and arbitrary due to the faulty application of the value of 'N' in the calculation of available bid capacity. However, no relief was granted to the petitioner due to their delay in approaching the court and the creation of 3rd party rights.

Final Decision: The petition was disposed of, and no relief was granted to the petitioner. The petitioner was advised to file a fresh petition or claim compensation for wrongful exclusion from the tendering process.

JUDGMENT :

Sanjeev Kumar, J.

(THROUGH VIRTUAL MODE)

1. The petitioner, an " AAY" Class registered Contractor is aggrieved and has challenged the action of respondent No. 3 rejecting as 'non-responsive' the bid tendered by the petitioner in response to NIT No. PCD-RnB-29 of 2020-21 dated 20th of August, 2020 on the ground that the assessment of Technical bids is totally arbitrary, irrational and dehors the norms/criteria prescribed in Clause 4.7 of the instructions to the bidders (ITB) in the Standard Bidding Document (SBD).

Factual matrix

2. Respondent no. 5, vide NIT No. PCD-RnB-65 of 2019-20 dated 20th of November, 2019, for and on behalf of Lieutenant Governor J&K UT, invited e-tenders (in two cover system) from approved and eligible contractors registered with the Government of Jammu and Kashmir, CPWD etc. for the work of construction of residential flats 2-BHK type four storied including sanitary fittings for government employees at Pampore Srinagar, Block 1, 2 and 3 for estimated cost of Rs. 1313.50 lacs and the work was to be completed within a period of 550 days. Simultaneously with the aforesaid NIT, the respondent No. 5 vide NIT No. PCD-RnB-66 of 2019-20 dated 20th of November, 2019 invited similar e-tenders on same terms and conditions for the work of construction of residential flats 2-BHK type four storied including sanitary fittings for Government employees at Pampore Srinagar, Block 4, 5 and 6. The petitioner along with others responded to the aforesaid NITs. On determination and evaluation of technical bids tendered by the competing tenderers, the technical bid submitted by the petitioner alone was found to be responsive. Since the bid of the single tenderer was found responsive, as such, a decision was taken by the respondents to invite fresh tenders for the said works.

3. Accordingly, fresh tender notices bearing NIT No. PCD-RnB-76 of 2019-20 and NIT No. PCD-RnB-77 of 2019-20 both dated 31st of December, 2019 were floated by the respondent No. 5 on the similar lines. This time also the bid tendered by the petitioner alone was found responsive by the tender evaluation committee consisting of experts in the field. The petitioner being single responsive tenderer was not considered for the financial bid and a decision was taken by the respondents to put the works to fresh tenders yet again.

4. In the aforesaid backdrop, the respondent No. 5 invited fresh tenders vide NIT No. PCD-RnB-29 of 2020-21 dated 20th of August, 2020, this time reducing the quantum of work. The fresh tender was for construction of flats Block 1 and Block 2 and the estimated cost of the work as indicated in the tender was Rs. 942.05 lacs. The time of completion was fixed as 425 days. The petitioner once again responded and was considered for evaluation of technical bids. The petitioner was declared non-responsive. Two other contractors, M/S. S. K. Integrated Consultants and M/S. Muzaffar Ahmad Rather were declared responsive. It is this decision of the technical bid evaluation Committee, the petitioner is aggrieved of.

The grounds of challenge and the contention of the learned counsel for the petitioner:

5. On behalf of the petitioner, it is contended that the impugned action of the respondent No. 3 rejecting the technical bid of the petitioner as 'non-responsive' is arbitrary, irrational and contrary to the terms and conditions of the NIT dated 20th of August, 2020. It is submitted that the petitioner was found responsive by respondent No. 3 for the similar works of higher value which were notified twice on two earlier occasions. The petitioner was found responsive with reference to NIT No. 65, NIT No. 66, NIT No. 76 and NIT No. 77 and, therefore, there was no reason or justification to declare the petitioner 'non-responsive' for the similar work of comparatively lower value. Referring to Clause 4.7 of the ITD in the SBD it is urged that respondent No. 3 has deliberately miscalculated the available bid capacity of the petitioner and has erroneously

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