2020 Supreme(Jhk) 577
IN THE HIGH COURT OF JHARKHAND AT RANCHI
RAJESH SHANKAR, J.
M/s Sandhya Constructions through its proprietor Satyendra Kumar, Bokaro Steel City, Bokaro – Appellant
Versus
M/s Steel Authority of India Limited (SAIL) – Respondent
W.P.(C) No. 1199 of 2020
Decided on : 29-06-2020
Advocate Appeared:
For the Appellant :Mr. Deepak Kumar, Advocate
For the Respondents:Mr. Vijay Kant Dubey, Advocate
Headnote:
Constitution of India,1950 - Article 226 - Bidders in said tender - Bidding through Reverse Auction Process - Fastest Finger First/Yankee Process - CVC Guidelines - Petitioner was one of bidders in said tender - Bidding through reverse auction process for said tender was held and bids were placed including bid of petitioner - It is further submitted that so far as reverse auction process is concerned same is generally done for purchase and selling of goods and not for rendering services - However present tender which was in relation to providing services was processed by respondents through reverse auction - It is also submitted that each and every bidder in said tender quoted lowest price i.e - Estimated value of amount and therefore all were L-1 as such respondents should have awarded work equally or in accordance with CVC guidelines - learned counsel for petitioner further submits that in “compliance of procedure memo no. ED has been issued under signature of Executive Director (Projects) Steel Authority of Limited Steel Plant which clearly manifests that in case of tie if only one party amongst them has to be selected said selection should be done through draw of lots in presence of bidders’ representatives – Held, Corporations and bodies acting as instrumentalities and agencies of Government has been settled by decision of this Court - Award of a contract whether it is by a private party or by a public body or State is essentially a commercial transaction. In arriving at a commercial decision considerations which are paramount are commercial considerations - State can choose its own method to arrive at a decision - It can fix its own terms of invitation to tender and that is not open to judicial scrutiny - It can enter into negotiations before finally deciding to accept one of offers made to it - Price need not always be sole criterion for awarding a contract - It is free to grant any relaxation for bona fide reasons if tender conditions permit such a relaxation - It may not accept offer even though it happens to be highest or lowest – Petition Dismissed.
JUDGMENT :
The present writ petition is taken up today through Video conferencing.
The present writ petition has been filed for issuance of direction upon the respondents to cancel the entire process of allotment of work for “Rate Contract for Comprehensive Civil Maintenance Work of Township, BGH & CSR activities” pursuant to NIT No. CCNW/19-20/LTE- 624/TE-Civil-4010022569 (hereinafter referred to as “the said tender”) dated 25.11.2019 as the same has been conducted without following the tender norms as contained in the CVC guidelines.
2. The learned counsel for the petitioner submits that the petitioner was one of the bidders in the said tender. The bidding through reverse auction process for the said tender was held on 03.03.2020 and approximately 147 bids were placed including the bid of the petitioner. It is further submitted that so far as the reverse auction process is concerned, the same is generally done for purchase and selling of goods and not for rendering services. However, the present tender which was in relation to providing services was processed by the respondents through reverse auction. It is also submitted that each and every bidder in the said tender quoted the lowest price i.e., (-) 25% of the estimated value of Rs. 14 crores and, therefore, all were L-1, as such the respondents should have awarded the work equally or in accordance with the CVC guidelines. The learned counsel for the petitioner further submits that in “compliance of procedure 2000”, memo no. ED(P)/01/9/174 dated 05.04.2000 has been issued under the signature of the Executive Director (Projects), Steel Authority of India Limited, Bokaro Steel Plant, which clearly manifests that in case of tie, if only one party amongst them has to be selected, the said selection should be done through draw of lots in presence of the bidders’ representatives. However, the respondents opted the method of ‘fastest finger first/Yankee process’ for allotment of work which was neither mentioned in the terms and conditions of the notice inviting tender nor in conformity with the CVC guidelines and thus, it can be said that the same has been done in an arbitrary manner with a view to favour some of the contractors who participated in the said tender. It is also submitted that the petitioner-firm along with various other aggrieved tenderers represented the respondent no. 3 – the Chief General Manager (Town Administrative Department), Bokaro Steel City on 05.03.2020 highlighting the discrepancies occurred in the auction process and requested for looking into the matter, however, the same was not responded. On acknowledging the fact that the respondents were proceeding further with the tender process, the petitioner again represented the respondents on 14.03.2020 for staying the award of work with a further request to cancel the entire process of tender, but no heed was paid towards the said representation also. The learned counsel for the petitioner thus submits that the respondents have conducted the reverse auction process in relation to the work in question violating the terms and conditions of the NIT and the norms of the CVC guidelines and, therefore, the entire tender process in relation to the said work is liable to be cancelled.
3. On the contrary, the learned counsel for the respondents submits that the respondents by way of auction notice dated 28.02.2020 had informed all the participating bidders about the Standard Instruction and the General Terms and Conditions of the auction process. Altogether 145 eligible bidders including the petitioner had conveyed their acceptance to online declaration with respect to the auction notice dated 28.02.2020 before participating in the auction process. Since the petitioner participated in the reverse auction process with open eyes, it cannot be allowed to turn around by contending that the reverse auction conducted by the respondents through an agency i.e., Mjunction Services Limited was illegal. It is further submitted tha