IN THE HIGH COURT OF JUDICATURE AT MADRAS
B. PUGALENDHI, J.
Ind-Vigo Coal Pvt. Ltd. & Ors. - Petitioners
Versus
Tamil Nadu Electricity Generation and Distribution Company Ltd & Ors. - Respondents
W.P. No. 4357 and 4389 of 2021 and W.M.P. Nos. 4957, 4958 & 4980 of 2021
Decided On : 24-02-2021
TENDER NOTIFICATION - CHALLENGE - TAMIL NADU TRANSPARENCY IN TENDERS ACT 1998, RULE 20 - The court discussed the violations of the Tender Notification by the respondent, including the time limit for submission of tenders, publication of the Tender Notification in the Indian Trade Journal, and other mandatory requirements. The court considered the arguments of both parties and the legal provisions related to tender transparency, and ultimately disposed of the writ petitions by advising the respondent to extend the time limit for submission of tenders and to ensure the publication of the Tender Notification in the Indian Trade Journal.
Fact of the Case:
The respondent TANGEDCO invited Online bids for the supply of 20 lakh tonnes of imported coal. The petitioners, two different companies engaged in the business of trading and exporting coal, challenged the notification, citing violations of the Tamil Nadu Transparency in Tenders Act 1998 and the Tamil Nadu Tender Transparency Rules 2000.
Finding of the Court:
The court found that the Tender Notification violated the Tamil Nadu Transparency in Tenders Act 1998 and the Tamil Nadu Tender Transparency Rules 2000, specifically regarding the time limit for submission of tenders and the publication of the Tender Notification in the Indian Trade Journal. The court advised the respondent to extend the time limit for submission of tenders and to ensure the publication of the Tender Notification in the Indian Trade Journal.
Issues: The main issues were the violations of the time limit for submission of tenders and the publication of the Tender Notification in the Indian Trade Journal, as per the provisions of the Tamil Nadu Transparency in Tenders Act 1998 and the Tamil Nadu Tender Transparency Rules 2000.
Ratio Decidendi: The court's decision was influenced by the legal provisions of the Tamil Nadu Transparency in Tenders Act 1998 and the Tamil Nadu Tender Transparency Rules 2000, which mandate the adequate time for the submission of tenders and the publication of the Tender Notification in the Indian Trade Journal. The court also considered the need for uninterrupted supply of coal for the Thermal Power Plants during the summer.
Final Decision: The court advised the respondent to extend the time limit for submission of tenders and to ensure the publication of the Tender Notification in the Indian Trade Journal, in compliance with the legal provisions.
ORDER :
The respondent TANGEDCO invited Online bids from the eligible bidders for supply of 20 lakh tonnes of imported coal of any origin having GCC 6000 KCAL/kg at, Kamarajar Port, Ennure vide Notification in Specification No.COAL-74 dated 18.1.2021. The said notification is under challenge in the above writ petitions by two different Companies engaged in the business of trading and exporting coal.
2. Since the same notification is challenged in both these writ petitions, the same are taken up together and disposed of by this common order.
3. Mr. Sathish Parasaran, learned Senior Counsel representing the learned counsel on record in W.P.No.4357 of 2021, pointing out several violations in the said Notification, submits that the Tender conditions are coined in such a manner to eliminate the participation of Indian traders in this tender process. The Tender value is about Rs.1330 crores and the required EMD is Rs.13 crores, but the period for submission of Tenders is fixed as 15 days in violation of the mandatory provision in Rule 20 of the Tamil Nadu Tender Transparency Rules 2000. As per this Rule the Tender inviting Authority shall ensure that adequate time is provided for the submission of Tenders and a minimum time limit is also prescribed between the date of publication of the Notification inviting Tenders and the last date for submission of Tenders. If the value of the Tender is in excess of Rupees two crores, 30 days is prescribed under the Rule, but in the impugned Notification, 15 days time alone has been provided.
4. The learned Senior Counsel has also pointed out that yet another violation of section 9(3) of the Tamil Nadu Transparency in Tenders Act 1998 and a Rule 11(1) of the Tamil Nadu Tender Transparency Rules.
5. Sub-section (3) of Section 9 of the Tamil Nadu Transparency in Tenders Act 1998 (hereinafter called as 'the Act') mandates the tender inviting authority to invite tenders in the form of a notice containing such particulars and shall also publish the notice inviting tenders in Indian Trade Journal and in daily newspapers having wide circulation depending upon the value of the procurement prescribed. The requirement of the publication of the Tender Notification in the Indian Trade Journal is also reiterated in Rule 11(1) of the Tamil Nadu Transparency in Tenders Rules, 2000 (hereinafter called as 'the Rules').
6. The learned Senior Counsel appearing for the petitioner has also made his submission that certain clauses have been incorporated in the Tender Notification and as per clause 1.18(xvi) in Section II GENERAL INSTRUCTIONS TO TENDERERS, a scanned copy of original Export Licence from the respective country for export of the coal needs to be produced and clause 7.14.2 in Section III COMMERCIAL insists that the bidder should have valid Export Licence of the respective countries for exporting coal and submit copy of the same alongwith the bid.
7. According to the learned Senior Counsel for the petitioner, the above conditions have been incorporated in order to eliminate the bidders from India by stipulating a time limit of 15 days as no person from India can get a license from the respective country for the export of the coal and it requires a process and that cannot be completed within the stipulated time.
8. By referring the conditions at clause 2.7 (c) & (h) in Section III COMMERCIAL, the learned Senior Counsel has made his submissions that these conditions are also onerous to restrict the Suppliers and to favor a few individuals.
9. The learned Senior Counsel has also pointed out that the administrative approval has not been obtained as per the TNEB Manual. Clause 489 of the Tamil Nadu Electricity Board Manual stipulates that for almost all works, the administrative approval of the Board is necessary and in this case, only after the Notification, the approval is sought for from the Board.
10. The learned Senior Counsel has also made elaborate argument, by referring the Guidelines issued by the Central Vigilan
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