Government procurement policies permit awarding entire non-splitable contracts to small enterprises if they match the lowest bid. Furthermore, participants who accept tender conditions are barred by estoppel from challenging those conditions post-facto.

JUDGMENT :

Rongon Mukhopadhyay, J.

1. Heard Mr. Rajiv Ranjan, learned senior counsel appearing for the petitioner, Mr. Tushar Mehta, learned Solicitor General of India and Mr. Sumeet Gadodia, learned counsel appearing for the respondent no. 6.

2. In this writ application, the petitioner has made the following prayers:

(a) In the nature of mandamus commanding upon the concerned respondents to show cause as to how and under what authority the work with respect to Hiring of equipment for Extraction of 13.301 M Te. of Coal by contractor's Surface Miner, Loading of 13.301 M Te of Coal at surface miner by contractor's Pay-loader into Tippers/Dumpers and Transportation of the same to surface coal stock yard of Amrapali OCP, A-C Area for the period of six (6) months has been allotted to the private respondent no. 6 despite the fact that the petitioner was declared L-1;

(b) Upon perusing the cause shown, if any, for a further writ / order / direction in the nature of mandamus commanding upon the concerned respondents to immediately and forthwith allot the work to the petitioner considering the fact that the bid of the petitioner has already been found to be most responsive and it has been declared L-1;

(c) For a further writ / order / direction in the nature of certiorari for quashing of letter of intent or any other document through which the work has been allotted to the respondent no. 6;

(d) For a further writ / order / direction in the nature of mandamus declaring clause-19(III)(A)(i) as manifestly arbitrary, illegal, discriminatory and ultra vires the parent Act of MSME Development Act, 2006;

(e) For issuance of any other appropriate writ(s) or direction(s) or order(s) as Your Lordships may deem fit and proper in view of the facts & circumstances of the case for doing conscionable justice to the Petitioner;

3. The factual matrix in brief is that the respondent no. 3 invited bids for the work of “Hiring of Equipment for Extraction of 13.301 M Te of Coal by Contractor’s Surface Mining, Loading of 13.301 M Te of Coal at Surface Miner by Contractor’s Pay- loader with Contractor’s Tippers/Dumpers and Transportation of the same to surface coal stockyard of Amrapali OCP, A-C Area for the period of six (6) months” through e-tender notice dated 07-05-2025. The salient features of the tender are as follows:

I. Total estimated cost of work- Rs.129,06,65,179.00/-

II. Bid Start Date- From the date of publication.

III. Bid End Date- 15 days from the date of publication.

4. The petitioner had participated in the entire bidding process and submitted its bid along with Earnest Money Deposit of Rs. 50 lakhs on 22-05-2025 as contemplated in the e-tender notice. Upon opening of the Technical Bid, the petitioner was found to be technically qualified and the same was also reflected in the portal of the respondent no. 5. Subsequent thereto, the Financial Bids were also opened in which the bid of the petitioner was found to be the lowest as well as most responsive and accordingly the petitioner was declared L-1. It is pertinent to mention herein that the bid of the petitioner was 4.60% below the estimated cost and the bid of the respondent no. 6 was 2.70% below the estimated cost. It is the case of the petitioner that the rate quoted by the petitioner was substantially lower than the other bidders and the petitioner otherwis