IN THE HIGH COURT OF JHARKHAND AT RANCHI
RAVI RANJAN, SUJIT NARAYAN PRASAD, JJ.
Gujarat Life Sciences (P) Ltd. – Appellant
Versus
The State of Jharkhand – Respondent
L.P.A. No.46 of 2022 With I.A.No.1070, 1076 of 2022
Decided on : 22-03-2022
Constitution of India - Article 226 - Appeal - ‘Expression of Interest’ - Power Of High Court to issue Certain Writs - Letters Patent is directed against order - Dismissed by refusing to interfere with order as contained in letter - Whether in facts of given case ‘Expression of Interest’ will be said to be sufficient compliance of the aforesaid Government order or not – Held, there is patent illegality in the decision making process since the decision for allotment of work which ought to have been taken on the basis of open tender in pursuant to Clause-9 of the Government order as contained in letter but State authority has allotted the work on the basis of ‘Expression of Interest’, as such, the same is nothing but patent illegality has been committed in allotment of work by taking wrong decision – Appeal dismissed
JUDGMENT :
The instant intra-court appeal preferred under Clause-10 of Letters Patent is directed against the order/judgment dated 28.01.2022 passed by the learned Single Judge of this Court in W.P.(C) No.1173 of 2021, whereby and whereunder, the writ petition has been dismissed by refusing to interfere with the order as contained in letter no.308 dated 17.02.2020, by which, the contract awarded to it was stayed, as also, the learned Single Judge has refused to interfere with the order as contained in letter no.479 dated 10.03.2021 issued by the Director, Horticulture, Jharkhand, Ranchi, by which, the contract awarded and concluded in favour of the writ petitioner-company, in pursuant to inviting applications through ‘Expression of Interest’ (in short ‘EoI’) dated 12.10.2019 published in newspaper on 16.10.2019 for supply of Organic Farm Inputs was rescinded.
2. The brief facts of the case, as per the pleading made in the writ petition, required to be enumerated, are as hereunder:-
The writ petitioner, in pursuant to the ‘EoI’ published by the Organic Farming Authority of Jharkhand (in short ‘OFAJ’) on 16.10.2019 in a daily newspaper "Prabhat Khabar" with reference to the government’s sanction letter no.106 dated 23.09.2019, inviting applications for empanelment of manufacturers for supply of Organic Farm Inputs (Bio-Fertilizers/Bio- Pesticides/Soil Conditioner/Plant Growth Enhancers/Other approved Bio- Products (if any). The writ petitioner-company participated and submitted the required technical and financial documents along with requisite fee as well as earnest money of Rs.5,00,000/- within the stipulated time before the concerned authority as per the terms and conditions of the EoI. The Chief Executive Officer, OFAJ- respondent no.5 held a pre-bid meeting on 17th October, 2019, in which, all the bidders who had submitted their bids were called for discussion, wherein, the prospects of said scheme and the procedures for finalization of tender process were discussed apprising them the manner in which the tender proposals were to be submitted, moreover, the procedures of evaluation of technical bid proposal were also made known to them. It was also clarified that the technical bid would be scrutinized by an evaluation committee and those firms/agencies, who fulfilled the minimum eligibility conditions, would be evaluated on the basis of scoring criteria. In terms with the EoI, a meeting of the tender committee under the Chairmanship of the respondent no.5 was convened on 24.10.2019 for technical evaluation of the proposals received and thereafter, the tender committee notified the number of tender proposals (in total 08) received with the authority within the stipulated time and further, the reasons for rejection of proposal of one of the bidders, namely, Indore Biotech Input & Research Pvt. Ltd., Indore, due to non-submission of E.M.D. and tender fee at the threshold, was also assigned. So far as the remaining seven tender proposals are concerned, the tender committee decided to evaluate and scrutinize the technical documents submitted by the concerned agencies. The tender committee, after scrutiny had rejected the proposals of four agencies for nonconformity with the terms as stipulated in the tender document.
Accordingly, tentative/provisional list of agencies likely to be empanelled was uploaded on the website of OFAJ on 03.01.2020 inviting objections from the concerned agencies within seven days from the date of such uploading. One of the agencies, namely, International Panacea Ltd. (I.P.L.) submitted its grievance/objection. The tender committee upon submission of said objection held a meeting on 17.01.2020 and took decision over the grievance of the aforesaid agency, discussing all the points so mentioned in the said objection and justified their decision attributable to nonconformity of clauses/terms by the said agency. The tender committee after deciding the objections so received by the aggrieved agency, finally drew p
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Judicial review in tenders limited to mala fides, arbitrariness, irrationality impacting public interest; courts defer to authority's interpretation of eligibility unless perverse.
Judicial review of tender conditions is limited; courts should not interfere unless actions are arbitrary, discriminatory, or mala fide, ensuring public interest is prioritized.
public authorities must be left with the same liberty as they have in framing the policies - Contracts are legally binding commitments and they commit the authority which may be held to be a State wi....
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