IN THE HIGH COURT OF JUDICATURE AT MADRAS
J. NISHA BANU, J.
Overseas Infrastructure Alliance (India) Private Limited – Petitioner
Versus
The Government of Tamil Nadu, Rep. by its Principal Secretary and Others – Respondents
W.P. No. 3907 of 2024, W.M.P. Nos. 4230, 4231 of 2024
Decided On : 07-03-2024
Tamil Nadu Transparency in Tender Act - Writ Petition - Section 11 - 2.1.1, 2.1.4, 3.8.6
Fact of the Case:
The petitioner, an infrastructure company, participated in a tender but was rejected due to failure to submit the required Electrical Contractor License. The petitioner filed a Writ Petition under Article 226 of the Constitution of India, challenging the rejection and seeking to be declared as a technically qualified bidder.
Finding of the Court:
The impugned order of the Appellate Authority was found to be arbitrary, unreasonable, and lacking in reasoning. The court held that the rejection of the petitioner's bid was illegal and directed the authorities to declare the petitioner as a technically qualified bidder and include their bid for the next stage of financial evaluation.
Issues: The court analyzed the legality of the impugned order, the fulfillment of Bidder Qualification Requirements, and the procedural requirement of filing an Electrical Contractor License.
Ratio Decidendi: The impugned order was found to be unreasonable and lacking in reasoning, leading to the court's interference. The court also held that the petitioner fulfilled the Bidder Qualification Requirements and the procedural requirement of filing an Electrical Contractor License was deemed redundant for participants with exclusive foreign experiences.
Final Decision: The writ petition was allowed, the impugned order was quashed, and the respondents were directed to declare the petitioner as a technically qualified bidder and include their bid for the next stage of financial evaluation.
JUDGMENT :
J. NISHA BANU, J.
Prayer: Writ Petition filed under Article 226 of the Constitution of India praying to issue a Writ of Certiorarified Mandamus, to call for the entire records of the impugned order dated 13.02.2024 passed by the 1st respondent vide G.O. (D) No. 3, rejecting the appeal filed by the petitioner under Section 11 of the Tamil Nadu Transparency in Tender Act, challenging rejection of the technical bid submitted by the petitioner in the Tender Ref. No. CE/IT and RAPDRP No. 06 to 11/2023-24 as arbitrary, malafide and perverse and to consequently direct the 3rd respondent to declare the petitioner as technically qualified bidder allowing the evaluation of its financial bid for further evaluation in the tender.
1. This Writ Petition is filed by M/s. Overseas Infrastructure Alliance (India) Private Limited against the impugned order in appeal dated 13.02.2024 passed by the first respondent Government of Tamil Nadu vide G.O. (D) No 3. The impugned order rejected the appeal of the petitioner preferred under Section 11 of The Tamil Nadu Transparency in Tenders Act, 1998. Earlier, the above appeal came to be filed against the rejection of the technical bid submitted by the petitioner in Tender Ref No CE/IT and RAPDRP Nos.06 to 11/2023-24 before the 3rd respondent Chief Engineer, TANGEDCO.
2. The impugned order dated 13.02.2024, after observing that the petitioner herein failed to submit the Electrical Contractor License issued by anyone State of India or abroad as required under the tender specifications, upheld the order of the 3rd respondent rejecting the bid of the petitioner and dismissed the appeal of the petitioner.
3. It is the grievance of the petitioner that, according to them the impugned order dated 13.02.2024 of the first respondent is arbitrary, mala-fide and perverse and accordingly, prayed for setting aside the impugned order dated 13.02.2024 and consequently declare the petitioner as technically qualified bidder and allow the evaluation of the financial bid of the petitioner for the further evaluation of the tender.
4. Background: The petitioner is an infrastructure company, incorporated in India with the Registrar of Companies, Mumbai and hold over 20 years of experience in power sector. Before participating in the tender, they had executed 11 power projects with an aggregate value of 253 million US dollars (Rs. 2104 Crores approx) across 6 countries in the Africa continent with most of the projects sponsored by the Government of India.
5. The Ministry of Power, Government of India launched Revamped Distribution Sector Scheme (RDSS) with the objectives to improve the quality, reliability and affordability of power supply to consumers through a financially sustainable and operationally efficient Distribution Sector and to reduce the line losses by enhancing the Distribution Infrastructure. Works include the strengthening and modernising the system as well as measures for Loss reduction of the system.
6. Upon approval of the Scheme by the Ministry of Power, Government of India and the Government of Tamil Nadu and in furtherance of the Resolution passed by the Board of TANGEDCO, the 2nd respondent floated tenders for work across various districts of Tamil Nadu in the form of many packages. The tender follows a single stage tender consisting of Two-envelope bidding process. The first envelope is Technical Part and the second envelope is Financial Part.
7. The tender was first floated during January, 2023. In the original tender, the experience clause excluded the experiences accumulated by the participants outside India. Aggrieved by the clause, the petitioner who had not done any project in India but had a wealth of experience outside India had filed a Writ Petition in WP No 13806 of 2023 in the nature of Public Interest Litigation before this court. The first bench of this Court was pleased to allow the petition vide Order dated 27.04.2023 and directed the 3rd respondent to allow the petitioner to submit the
Master Marine Services Pvt. Ltd. vs. Metcalfe and Hodgkinson Pvt. Ltd. and Another
Agmatel India Private Limited vs. Resoursys Telecom and Others
Jagdish Mandal vs. State of Orissa and Others
Master Marine Services Private Limited vs. Metcafe and Hodgkinson Private Limited and Another
Municipal Corporation, Ujjain and Another vs. BVG India Private Limited
National High Speed Rail Corporation Ltd. vs. Monte Carlo Limited and Another
Silppi Constructions Contractors vs. Union of India
The main legal point established in the judgment is the requirement for transparency and adherence to tender regulations, including the need for valid qualifications in the technical bid, as per the ....
The court emphasized the need for restraint and deference to the tendering authority's interpretation of tender documents, especially in technical matters, and highlighted the importance of public in....
The court upheld the authority's discretion in evaluating tender bids, emphasizing the need for compliance with mandatory conditions and the absence of arbitrariness in disqualification decisions.
The court emphasized the limited scope of judicial review in contractual matters and the deference to be given to the interpretation of the tender document by the author. It also clarified that the w....
Tender authorities must adhere to statutory criteria and act transparently; courts will not interfere unless clear evidence of arbitrariness or malafide conduct is presented.
Login now and unlock free premium legal research
Login to SupremeToday AI and access free legal analysis, AI highlights, and smart tools.
Login
now!
India’s Legal research and Law Firm App, Download now!
Copyright © 2023 Vikas Info Solution Pvt Ltd. All Rights Reserved.