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2021 Supreme(Mad) 771

BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT
V. PARTHIBAN, J.
M/s. Sankaranand Infra – Appellant
Versus
The Managing Director, Tamil Nadu State Transport Corporation, Thanjavur – Respondent
W.P. (MD) Nos. 3865 & 3867 of 2021 & W.M.P. (MD) Nos. 3101, 3102, 3105 & 3106 of 2021
Decided On : 24-03-2021

Advocates:
Advocate Appeared:
For the Appellant :Isaac Mohanlal, Senior Counsel, R. Maheswaran, Advocate.
For the Respondent:Sricharan Rengarajan, Additional Advocate General Assisted by J. Senthil Kumariah, Advocate.

Point of law: petitioner has no locus standi in the first place to challenge the tender notifications, as admittedly he has not chosen to submit his bid in response to the notification. No doubt, it was argued that the conditions were so onerous and unreasonable and the contractors like the petitioners were excluded. But, it is up to the tender issuing authority to prescribe as many conditions as they deem fit in terms of the provisions of the Act, 1998.

Headnote:

Constitution of India, 1950 – Article 226 – Writs of Certiorari – Tenders – Petitioner is a registered partnership firm engaged in civil works. The firm is also registered as contractor under various departments like National Highways, Public Works Department, Municipality etc., According to the petitioner firm, it had participated in several tenders floated by various Government departments like National Highways, Public Works Department, Municipality etc. – The firm claims to have executed the works entrusted to it within the time frame stipulated in the contract and also without any complaints by the tender issuing authorities. – Grievance of the petitioner herein is that the respondent in both the writ petitions issued two tender publications one and another, inviting tenders from Class I contractors for construction of bus stand cum passenger refreshment centre at Pungambadi Melpham Village, Aravakurichi at the estimated cost of Rs.4.20 Crores and another tender notification in respect of construction of additional mofussil bus stand with buildings for commercial complex at and infrastructure facilities Thoranakalpatty Village, Karur, at the estimated cost of Rs.40 Crores.

Finding of court: Two conditions which were pointed out on behalf of the petitioner contending that the same have been included in the tender which is for achieving a collateral purpose does not merit serious consideration of this Court, in the circumstances of the case. On the other hand, it was well demonstrated on behalf of the respondent by the learned Additional Advocate General that the petitioner firm is not even qualified to parttake in the tender process and therefore, he has no locus standi to question the tender notification. – In fact, the way in which the objections were raised on behalf of the petitioner show that he wants the tender issuing authority to incorporate conditions tailor-made to suit the qualifications of the petitioner and not otherwise. – Objection regarding the presentation of the document directly which might give rise to corrupt practices is a general statement which is not supported by any legal material. – On the other hand, presentation of document directly is well within the frame work of the Act. – On the whole, this Court finds that there is absolutely no merit and substance in the challenge and the petitioner's attempt to sully the tender process into a controversy is to be frowned upon and also to be rejected outright. – This Court does not find anything seriously wrong or amiss with the tender notification and the conditions imposed therein.

Result: Writ Petitions Dismissed

JUDGMENT :

(Common Prayer: Writ Petitions filed under Article 226 of the Constitution of India for issuance of Writs of Certiorari, calling for the records pertaining to the impugned tender notifications issued by the respondent vide Ref.No.TNSTC/KUM/CIVILCORP/ 621-2/2021 and Ref.No.2/2021-2022 dated 25.01.2021 and 29.01.2021, respectively and quash the same in so far as the condition in

'Chapter II(2) – General conditions / instructions to the tenderer – clause 'f' – the applicant should have on going or completed project for atleast one Bus Stand Work of similar nature with value (90% of project value) not less than Rs.35 crores under a single agreement in any one of the proceeding 5 years (including the Goods and service tax (GST) amount)'

and

in the chapter II(4) – clause 'a'

'the contractor may have the option to present the tender directly or to send registered post acknowledgment due on or before the last date for receipt of tenders' as ultravires.

and pass such further or other orders as this Court may deem fit and proper in the circumstances of the case.)

1. The above writ petitions raise common issues and grounds and also filed by the same entity and hence, they are taken up together for common disposal as under.

2. The facts as stated in W.P.(MD)No.3865 of 2021 are stated hereunder for the disposal of both the writ petitions:

2.1. The petitioner is a registered partnership firm engaged in civil works. The firm is also registered as contractor under various departments like National Highways, Public Works Department, Municipality etc., According to the petitioner firm, it had participated in several tenders floated by various Government departments like National Highways, Public Works Department, Municipality etc. The firm claims to have executed the works entrusted to it within the time frame stipulated in the contract and also without any complaints by the tender issuing authorities.

2.2. The grievance of the petitioner herein is that the respondent in both the writ petitions issued two tender publications one on 25.01.2021 and another on 29.01.2021, inviting tenders from Class I contractors for construction of bus stand cum passenger refreshment centre at Pungambadi Melpham Village, Aravakurichi at the estimated cost of Rs.4.20 Crores and another tender notification dated 29.01.2021 in respect of construction of additional mofussil bus stand with buildings for commercial complex at and infrastructure facilities Thoranakalpatty Village, Karur, at the estimated cost of Rs.40 Crores.

2.3. According to the petitioner, when the tender document was downloaded, he came to know certain onerous conditions had been stipulated as per which, he was not eligible to apply and participate in the tender, though he was otherwise a registered Class I Contractor of Government Department. According to the petitioner, the conditions were tailor-made to suit the contractors of the respondent's choice. Challenging certain stipulations in the tender notifications dated 25.01.2021 and 29.01.2021 both writ petitions have been filed by the petitioner firm.

3. The learned Senior Counsel Mr.Isaac Mohanlal appearing for the petitioner firm would submit that the impugned tender notice contains irrational, unreasonable and onerous conditions with a view to exclude the participation of the contractors like the petitioner and to award the same to the chosen few by the respondent. He would particularly refer to tender condition No.2, which reads as follows:

“2.Conditions for Pre-Qualification / Eligibility Criteria:

Qualification hereunder is invited in accordance with TNSTC Kumbakonam procedure for qualification of tenderers.

a. Only the contractors registered with Tamil Nadu State Public Works Department, Municipality and other Govt. Departments under Class.I (STATE LEVEL) (as per revised classification) with monetary limit of above Rs. 35.00 Crores (Rupees Thirty Five Crores only).”

4. He would also refer to tender condition 'f', that reads as follows:

“f. The A

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