IN THE HIGH COURT OF MADRAS (MADURAI BENCH)
K. Kalyanasundaram, G. Ilangovan, JJ.
Hydro Electrical Systems - Appellants
Vs.
Tamil Nadu Water Supply and Drainage Board and Ors. - Respondent
Writ Appeal (MD) No. 259 of 2021 and CMP (MD) No. 830 of 2021
Decided On : 15-02-2021
Tender Disqualification - Contract Award - TATA Cellular Vs. Union of India - Conditions 26.2, 27.2, 26.3 - Kanhaiya Lal Agrawal v. Union of India - Essential vs. Collateral Conditions
Fact of the Case:
The appellant challenged the disqualification in a tender process for a water supply scheme contract. The appellant was disqualified at the technical bid stage, and the contract was awarded to the fourth respondent. The appellant alleged that the fourth respondent was also unqualified and that the contract was awarded for extraneous reasons.
Finding of the Court:
The court found that the appellant failed to meet the financial qualification criteria and did not submit the required affidavit, leading to disqualification. The court also rejected the appellant's argument that the authorities did not comply with certain conditions. The court held that the disqualification was not arbitrary and that the appellant's disqualification was due to his own fault.
Issues: Disqualification in tender process, compliance with tender conditions, award of contract to the fourth respondent, loss to the government exchequer.
Ratio Decidendi: The court applied the principles from TATA Cellular Vs. Union of India and Kanhaiya Lal Agrawal v. Union of India to determine essential vs. collateral conditions in the tender process. The court emphasized the importance of meeting the financial qualification criteria and complying with the prescribed formats in the tender documents.
Final Decision: The court dismissed the writ appeal, confirming the order of the learned single Judge, and held that the disqualification was justified, and the appeal had no grounds for interference.
JUDGMENT :
G. Ilangovan, J.
1. The Writ Appeal has been directed under Clause 15 of Letters Patent against the order of the learned single Judge of this Court, dated 22.01.2021 made in W.P.(MD) No. 18639 of 2020.
2. The facts of the case narrated in the writ petition are that the first respondent/Tamil Nadu Water Supply and Drainage Board (TWAD), issued a Tender Notification, dated 06.11.2020 inviting tender for carrying out the work of 'Rejuvenation and improvements of existing Combined Water Supply Scheme to Andipatti - Sedapatti in Madurai and Theni District'. The appellant as well as the fourth respondent herein participated in the tender process. Even at the technical bid stage, the appellant was disqualified. The communication, dated 09.12.2020 was also sent, which is impugned in the writ petition. In that tender process, the fourth respondent herein, was awarded with the contract. So, challenging the same, the appellant has filed the impugned writ petition before the Writ Court and by the order, dated 22.01.2021, the writ petition was dismissed by holding that the appellant has not satisfied the tender conditions and so, disqualification has been rightly passed by the authorities. The contention raised by the writ Appellant before the Writ Court is that the fourth respondent herein is also not qualified to take part in the tender process and the authorities ought to have disqualified him also and instead, for extraneous reasons, the contract was awarded to him. Those contentions were rejected by the Writ Court mainly on the ground that he failed to enclose Annx viii, as set out in the conditions of tender. Challenging the correctness of the said order, this writ appeal has been preferred.
3. Heard the learned counsel on both sides.
4. The law, on the point of judicial interference into the executive action, more particularly, with regard to contract through tenders is well settled. Particularly, in the case of TATA Cellular Vs. Union of India wherein, it has been pointed out among other things, the guide line No. 2 reads as follows:-
The appellant wants to quash the tender process on this ground.
5. For better appreciation of the dispute involved, the chronological events can be summarised as follows:-
6. According to the appellant, he submitted his tender application on 02.12.2020 and paid security amount. He annexed the documents, which were required to be filed. So, among the documents, which were alleged to have been enclosed along with the tender application, the dispute is only with regard to credit line certificates from the financial institutions.
7. When the bid was opened at 03.30 p.m. on 03.12.2020, he was informed that original affidavit was not furnished and so, he submitted the same on 4.12.2020. At about 04.30 p.m., on 11.12.2020, he was informed that he was rejected during technical evaluation stating that the form submitted by the appellant has not satisfied the financial qualification criteria and the non-submission of original affidavit regarding the correctness of information furnished.
8. According to the learned Senior counsel for the fourth respondent, the award of contract to the fourth respondent was not challenged by the appellant. Moreover, conditions stipulated in 24.5 and 24.6 were not complied by the appellant. Even as per the information, the appellant undertook to produce the require document and so, there is no infirmity disqualifying the ap
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