IN THE HIGH COURT OF JUDICATURE AT MADRAS
Abdul Quddhose, J.
AMG. Vijaykumar & Another – Petitioners
Versus
The General Manager (Contracts Cell) India Oil Corporation Ltd., & Another – Respondents
W.P. Nos. 14901 & 14906 of 2022 & W.M.P. Nos. 14112, 14113, 14117 & 14119 of 2022
Decided On : 29-06-2022
Constitution of India- Article 226- Contract Tender - Rejection of its technical bid - To quash the technical evaluation of the 2nd respondent with relation to the petitioner in Tender and consequentially direct the respondents to permit the petitioners to participate in the price bid – Held, When the price bids are yet to be opened, the respondent's/Oil Corporation's contention is an unreasonable and an unfair one which would amount to stifling competition - reason for the rejection of the technical bids submitted by the petitioner is arbitrary and suffers from irrationality and procedural impropriety shocking the conscience of this Court, the petitioner's technical bids will have to be accepted for further evaluation on merits and in accordance with law.
- Writ Petitions are allowed.
ORDER :
(Common Prayer: Writ Petitions are filed under Article 226 of the Constitution of India to issue a Writ of Certiorarified Mandamus or any other writ or order in the nature calling for the records and to quash the technical evaluation of the 2nd respondent dated 08.06.2022 with relation to the petitioner in Tender ID No.:2022_SROTN_146464_1 in Tender reference No.SRCC/PT/179/TNSO/2021-22 and consequentially direct the respondents to permit the petitioners to participate in the price bid.)
1. The petitioner has challenged the rejection of its technical bid by the respondent/Oil Corporation under the impugned orders both dated 08.06.2022.
2. The petitioner is a transport contractor. He has submitted his bid in the auction conducted by the respondent/Oil Corporation for appointment of transport contractors. Under the impugned orders, the petitioner's bid has been rejected during technical evaluation by the respondent/Oil Corporation for the reason "Bidder has striked off declaration - I stating NA in the attachment - 11". According to the respondent/Oil Corporation, the said declaration submitted by the petitioner is invalid as the petitioner has erroneously struck of the declaration by stating it is not applicable.
3. The petitioner has challenged the impugned orders both dated 08.06.2022, which is in respect of two tenders rejecting the petitioner's bid on the following grounds:
b) the second respondent failed to note that the declaration was filled up and uploaded;
c) the second respondent failed to note that the declaration sought in the query dated 02.05.2022 raised by the second respondent is a repetitive declaration, as the same has already been given by the petitioner. According to the petitioner, the inadvertent act of striking off is only an insignificant error and not grave enough to reject the technical bid of the petitioner. However, it is the case of the respondent/Oil Corporation that the declaration is an essential requirement as part of the tender documents. According to them, even if assuming the said declaration is trivial in nature, being a high value tender, the petitioner ought to have been careful while submitting the tender documents and cannot blame his consultant for the defect. They would also contend that after scrutiny of the tender documents of the petitioner, a query was raised by the respondent/Oil Corporation on 02.05.2022, requesting the petitioner to submit the declarations as required under the tender document which includes declaration - 'I', 'II' and 'III' (attachment - 11), which was the reason for rejection of the petitioner's bid under the impugned orders during technical evaluation made by the respondent/Oil Corporation. According to the respondent/Oil Corporation, despite the said query, the petitioner has not submitted the necessary declaration but instead has made an endorsement that the said declaration is not applicable (NA);
d) if the petitioner's bid is now accepted after its rejection under the impugned orders, it will lead to great ramification, as other bidders whose bids have been rejected pursuant to the technical evaluation, will also challenge the rejection before the appropriate Court;
e) The respondent is an Oil Corporation and therefore, any delay in the appointment of transport contractors will not be in public interest, as it would lead to disruption of petroleum products supply to various petroleum retail outlets.
4. Heard Mr.Vijay Narayan, learned Senior Counsel for the petitioners and Mr.M.S.Krishnan, learned Senior Counsel for the respondent.
5. Mr.Vijay Narayan, learned Senior Counsel drew the attention of this Court to the impugned orders as well as to declaration - 'I' (attachment - 11) which has been struck off by the petitioner as not applicable (NA). He would submit that the said declaration will come into effect only after the contract is awarded to the pet
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The rejection of a technical bid based on minor documentation errors is arbitrary and undermines the principles of fairness and public interest essential for the tender process.
Important Point – Government Contract – Tender – Public authorities have to ensure that no bias, favouritism or arbitrariness are shown during bidding process and that entire bidding process is carri....
The main legal point established in the judgment is the requirement for bidders to comply with the bidding documents, including the submission of documents in the specified format. The judgment empha....
If two views are possible the Court should not impose the other view in the instant case.
The decision-making process of the tendering authority should be respected unless there is mala fide or perversity, and the court should only interfere in tender matters in furtherance of public inte....
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