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2023 Supreme(J&K) 258

IN THE HIGH COURT OF JAMMU & KASHMIR AND LADAKH AT JAMMU
M.A. CHOWDHARY, J.
Ranjit Publicity Pvt Ltd., Through its Director, Deepak Dutta, S/o. Sh. N.P. Dutta – Petitioner
Versus
Jammu Municipal Corporation, Projects Division, through its Commissioner and Ors. – Respondents
WP (C) No. 121 Of 2023, CM No. 246 Of 2023
Decided On : 04-10-2023

Advocates Appeared:
For the Petitioner: Mr. Gagan Kohli.
For the Respondents: Mr. Rajnish Raina, Mr. Zaffar Qadri.

The court emphasized the principles of judicial restraint in administrative action, the lack of expertise of the court to correct administrative decisions, and the importance of public interest in tendering processes.

Headnote:

MSME - Tendering Process - Government Portal communication dated 09.01.2023, Ministry of Finance, Department of Expenditure, Procurement Policy Division vide its office memorandum dated 26.07.2016 - MSME Act, Section 7 - The court discussed the principles governing the exercise of power of judicial review of the administrative action, the modern trend of judicial restraint in administrative action, and the freedom of contract for the government. The court emphasized that it does not sit as a court of appeal but reviews the manner in which the decision was made, and does not have the expertise to correct the administrative decision. The court also highlighted the importance of public interest and the need to avoid heavy administrative burden on the administration.

Fact of the Case:

The petitioner, claiming to be an MSME unit, participated in a tendering process for providing and fixing Static Ad Panels in Jammu City. The petitioner sought to quash the order cancelling its Technical Bid, grant relaxation as per the circular issued by the Government of India, and direct the respondents to accept its Technical Bid and open the Financial Bid.

Finding of the Court:

The court found that the petitioner failed to satisfy the technical terms of the bid and did not qualify as a bidder. The court upheld the impugned order rejecting the petitioner's bid, emphasizing that the administrative decision was not actuated by any mala fide and intended to favour someone, and the public interest would suffer if the technical bid of another bidder was not accepted.

Issues: The main issue was the rejection of the petitioner's Technical Bid and the petitioner's plea for relaxation as an MSME unit.

Ratio Decidendi: The court emphasized the principles of judicial restraint in administrative action, the lack of expertise of the court to correct administrative decisions, and the importance of public interest in tendering processes.

Final Decision: The petition filed by the petitioner was found to be without merit and substance and was dismissed, upholding the impugned order. The court emphasized that there shall be no order as to costs.

JUDGMENT :

1. Petitioner claiming to be a Micro Small Medium Enterprises (MSME) Unit, and having participated in the tendering process in response to e-NIT No. 78(P) of 2022-23 issued by respondent no.3/Executive Engineer Projects Division, JMC Jammu with regard to providing and fixing Static Ad Panels in Jammu City, through the medium of this petition has sought the following reliefs:

    a) To quash and set aside order dated 09.01.2023 passed by the respondent No.3 which is uploaded in the Govt. Electronic Procurement notification of the Jammu Municipal Corporation, whereby the Technical Bid of the petitioner in pursuance to e-NIT No. 78(P) of 2022-23 dated 01.12.2022 has been cancelled, by issuance of writ of Certiorari.

b) Command and direct the respondents to grant relaxation to the petitioner as circulated by the Govt. of India Ministry of Finance, Department of Expenditure, Procurement Policy Division vide its office memorandum dated 26.07.2016 as the petitioner unit being a Micro, Small and Medium Enterprises, by issuance of writ of mandamus.

c) Command and direct the respondents to accept the Technical Bid of the petitioner and open the Financial Bid of the petitioner and allot the work in pursuance to e-NIT No. 78(P) of 2022-23 dated 01.12.2022, by issuance of writ of mandamus.

d) Prohibiting the respondents from allotting the work advertised by e-NIT No. 78(P) of 2022-23 dated 01.12.2022 to any other person till the financial bid of the petitioner is opened and considered by the respondents, by issuance of writ of prohibition.

2. It has been asserted in the petition that the Jammu Municipal Corporation through its Projects Division came to issue an e-NIT no. 78(P) of 2022-23 for the work of Providing and Fixing Static Ad Panels in Jammu City; that the schedule for submission of bids, opening of bids and the manner of applying in the bidding process stood detailed in the said e-NIT, the petitioner claims to be one of the bidders who responded to this e-NIT and by virtue of Government Portal communication dated 09.01.2023, the petitioner come to be apprised that its bid has not been admitted by the committee and has been asked to get in touch with the Tender Inviting Authority (TIA); that the respondents have been writing letters to the petitioner in other bids and calling upon the petitioner to complete the non mandatory terms, but in the present bid, the respondents have neither disclosed the non mandatory terms which are lacking nor opportunity to correct the same is being afforded to the petitioner which is illegal and arbitrary; that to the best of information of the petitioner, the contract has not been put to final allotment by reference to the e-NIT in question.

3. The grievance of the petitioner is that the same work has been advertised by respondent no.3 for six times and every time there were only two bidders, one bid was submitted by the petitioner and another by other contractor and as per the Financial Code, if the department is not getting sufficient bid then the department may re-tender the same work for three times and even after third advertisement, there is no healthy competition, then the department can proceed with the tender and finalize the contract. In the present case the same work has been advertised sixth time, it has to be finalized but the technical bid of the petitioner has been rejected without disclosing the reasons, therefore, non-consideration of the bid of the petitioner is illegal and arbitrary.

4. Pursuant to notice, the official respondent Nos. 1 to 3 filed objections asserting therein that the present petition is not maintainable for the reason that the petitioner had participated in the tender process however in technical evaluation, after opening of the Technical Bid, the tender evaluation committee found that the petitioner is not qualified as it failed to fulfill the pre-requisites of the qualifying bid; that invitation of fresh bids are based upon the response to bids and adherenc

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