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2011 Supreme(Mad) 720

High Court of Judicature at Madras
VINOD K. SHARMA, J.
Easun Products of India (P) Ltd., Rep. by its Project Manager, N. Rajan
Versus
The Chairman, Tamil Nadu Electricity Board/TANTRANSCO, Chennai & Another
Writ Petition No.23088 of 2010 & M.P.No.1 of 2010
Decided on : 11-02-2011

Advocates Appeared:
For the Petitioner:A.R.L. Sundaresan, S.C. for K.J. Rabello, Advocates.
For the Respondents:P.S. Raman, Advocate General for A. Selvendran, Advocates.

The terms of the tender document prescribing eligibility criteria can only be interfered with if they are arbitrary, discriminatory, or biased, but not merely because some other term could be more preferable.

Headnote:

Certiorari - Tender Specification - Companies Act - [230 KV, 1 x 1200 sq.mm. Alumunium XLPE Cable and accessories, laying of cable and erection of joints and terminations under Turnkey basis vide Tender Specification No.T-1599] - [Companies Act] - The court discussed the Bid Qualification Requirements, the petitioner's request for amendment, and the respondent's clarifications. The court found that the Bid Qualification Requirements were clear and unambiguous, and the petitioner's failure to participate in the bid barred them from challenging the process of allotment. The court dismissed the writ petition.

Fact of the Case:

The petitioner, a company registered under the Companies Act, sought a writ in the nature of Certiorari to quash tender specification T-1599, alleging that it was arbitrary and against public cause. The petitioner initially filed the writ petition praying for a writ in the nature of mandamus, directing the second respondent to amend the 'Bid Qualifying Requirements'.

Finding of the Court:

The court found that the Bid Qualification Requirements were clear and unambiguous, and the petitioner's failure to participate in the bid barred them from challenging the process of allotment. The court dismissed the writ petition.

Issues: The issues included the petitioner's request for amendment of the Bid Qualification Requirements, the respondent's clarifications, and the petitioner's failure to participate in the bid.

Ratio Decidendi: The court held that the terms of the tender document prescribing eligibility criteria can only be interfered with if they are arbitrary, discriminatory, or biased, but not merely because some other term could be more preferable. The petitioner's failure to participate in the bid barred them from challenging the process of allotment.

Final Decision: The court dismissed the writ petition.

JUDGMENT :

1. The petitioner M/s. Easun Products of India (P) Ltd., a company registered under the Companies Act has invoked the extraordinary writ jurisdiction of this Court, with a prayer for issuance of a writ in the nature of Certiorari, to quash tender specification T-1599 being arbitrary and against public cause and also being not in conformity with reasonableness.

2. The petitioner initially filed the writ petition praying for a writ in the nature of mandamus, directing the second respondent to amend the "Bid Qualifying Requirements" by amending clause 1.3.1 which provided that "the Consortium can be formed between bidders, manufacturer of cable, manufacturer of joints and terminations and contractor for erection of cable and accessories in any combination".

3. Keeping in view of the settled law that it is not within the jurisdiction of the Courts to direct as to how the terms and conditions of the bid document, are required to be framed, an application to amend the writ petition is filed, which is allowed and amended writ is taken on record.

4. The facts pleaded in the affidavit are that the Director, Transmission Projects, TANTRASCO invited tender for procurement of 129 Kms of 230 KV, 1 x 1200 sq.mm. Alumunium XLPE Cable and accessories, laying of cable and erection of joints and terminations under Turnkey basis vide Tender Specification No.T-1599.

5. In terms of tender document, a Pre-Bid meeting was held on 28.7.2010 in which petitioner participated and raised the following queries:- (i) Clarifications regarding test laboratories vide their letter dated 7.8.2010. (ii) Clarifications regarding the Optic Fibre Cable and joints with number of fibre counts vide their letter dated 28.8.2010.

6. The case of the petitioner is that the second respondent clarified and amended the Bid Qualification Requirements for the other bidders, but not for the petitioner.

7. Thereafter, vide letter dated 30.08.2010, the Director, Transmission Project informed the bidders that all the clarifications have already been issued.

Therefore, the bidders should satisfy the "Bid Qualifications requirements".

8. The Bid lays down the following Bid Qualification Requirements:- "BID QUALIFICATION REQUIREMENTS The bidder shall become eligible to bid on satisfying the following BQR. The bidder shall produce required documentary evidence in support of fulfillment of BQR along with the tender. 1.1.1 The bidder should be a manufacturer of 220 kv or above voltage grade XLPE Cable. The manufacturer should have minimum 2 years experience in manufacturing 220 KV or above Volatage grade XLPE CABLE. 1.1.2 The bidder should have successfully supplied and laid atleast 8 ks of 22 kv or higher voltage grade XLPE cable which should be in successful operation for a minimum period of two years. The cable should have been supplied by the same source from where bidder is proposing to supply the tendered cable. Necessary documentary evidence such as copy of purchase order and performance certificate shall be furnished along with the offer. 1.1.3 The Bidder or his Sub - Vendor should have designed, manufactured tested and supplied 220 kv or above Voltage cable accessories (i.e. Joint and termination) which should have been erected, commissioned and in successful operation for more than two years. Necessary documentary evidence and end user certificate for the same should be furnished with the offer. BQR relevant to Consortium made in Section 1.3 1.3 The bidding is also open to consortium (Maximum three members). The Consortium members shall individually or together meet the above mentioned qualifying requirements. Consortium is permitted subject to the following conditions: 1.3.1 The consortium can be formed between bidder, manufacturer of Cable, principals, technical collaborator, manufacturer of Joints & terminations and Contractor for erection of cable & accessories in any combination. 1.3.2 No member can be a member in more than one consortium. 1.3.3 The bid and the















































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