2005 Supreme(Ori) 196
High Court Of Orissa
S. B. ROY, M. M. DAS
MEDITRONICS MANUFACTURING CO.PVT.LTD. - Appellant
Versus
STATE OF ORISSA - Respondent
W. P. 9662 Of 2004
Decided On : 03/01/2005
A.K.MOHANTY, B.K.SHARMA, B.MOHARANA, BIJAN RAY, C.Choudhury, I.MOHANTY, K.A.Guru, R.RAY, S.MOHAPATRA, S.Patnaik
The importance of fair and transparent tender processes in government contracts, especially in projects financed by international institutions, and the limited scope of judicial review in administrative decisions.
Headnote:
Tender - X-Ray Machines - World Bank's Guidelines : procurement under IBRD Loans and ida Credits - The court discussed the technical specifications stipulated in the tender document, the evaluation process, and the compliance with World Bank's guidelines. The court emphasized the importance of fair and transparent tender processes in government contracts and upheld the selection of the successful bidder for supply of X-Ray machines.
Fact of the Case:
The petitioner challenged the selection of the successful bidder for the supply of X-Ray machines, alleging faulty decision-making and arbitrariness. The State justified the selection process, citing compliance with World Bank's guidelines and the technical specifications.
Finding of the Court:
The court found that the selection process was fair and free from unreasonableness, and upheld the selection of the successful bidder. The court emphasized the importance of adhering to tender requirements in projects financed by international institutions.
Issues: The issues revolved around the compliance with technical specifications, fairness of the selection process, and adherence to World Bank's guidelines in the procurement of X-Ray machines.
Ratio Decidendi: The court's decision was based on the fair and transparent nature of the selection process, compliance with tender requirements, and the potential consequences of project delay in a World Bank-funded project.
Final Decision: The writ application was dismissed, and the court upheld the selection of the successful bidder for the supply of X-Ray machines.
M. M. DAS, J.
( 1 ) THE Project Director, orissa Health Systems Development Project, published a tender call notice in different newspapers under the nomenclature "invitation FOR BIDS", international Competitive Bidding, inviting tenders in sealed cover for supply of X-Ray machines of different specification and other medical equipments/machines from eligible bidders. For convenience said tender call notice is extracted hereunder :"government of Orissa, orissa Health Systems Development Project, behind Capital Hospital, Unit-6, bhubaneswar -751001, India Supply of X-Ray Machines and medical Equipment credit No. ITF-041 IN ifb No. : OHSDP/icb/03 ist SEPTEMBER 2003 invitation FOR BIDS international COMPETITIVE BIDDING (1. The Government of Orissa has received a credit from the Interim Trust Fund (ITF) administered by International Development association in various Currencies towards the cost of Orissa Health Systems Development project and it is intended that part of the proceeds of this credit will be applied to eligible payments under the contracts for which this Invitation for Bids is issued. (2. The Project Director, Orissa Health systems Development Project now invites sealed bids from eligible bidders for the supply of goods and related services as listed below :
Sl. No. 1 X-Ray Machines, 300ma 30 4,00,000/- 2 X-Ray Machines, 100ma 62 3,50,000/- 3 X-Ray Machines, 60ma 30 1,00,000/- 4 X-Ray Machines, Dental 32 75,000/- 5 Ultra Sound Scanners 30 4,50,000/- 6 Computerised Treadmills 5 1,25,000/- 7 Cystoscopes 32 3,00,000/- 8 Semi Auto Analysers 32 1,75,000/- 9 QBC Machines (Hematoparasite Detection Systems Item Description Quantity Bid Security (Rs.) 22 2,00,000/-
(3. Bidding will be conducted through the international competitive building procedures specified in the World Bank's Guidelines : procurement under IBRD Loans and ida Credits, and is open to bidders from all countries as defined in the Guidelines. (4. Interested eligible bidders may obtain further information from the Deputy General manager (Procurement), ELMARC Limited, bhubaneswar and inspect the bidding documents at the address given below from 10. 30 A. M. to 4. 30 P. M. (5. A complete set of bidding documents in English may be purchased from 4th September 2003 to 22nd October 2003 by interested bidders on the submission of a written application to the address below and upon payment of a non-refundable fee of Rs. 4000/- (for domestic bidders) or US $ 100 (for overseas bidders) in the form of Demand draft/cashier's cheque/certified cheque in favour of ELMARC Limited payable at bhubaneswar, India. Bidding documents requested by mail will be dispatched by registered/speed post/courier on payment of an extra amount of Rupees 500 (for domestic bidders)and US $ 50 (for overseas bidders ). No liability will be accepted for loss or late delivery. (6. All bids must be accompanied by a bid security in the currency of the bid of US dollars or in Indian Rupees equivalent to the Indian Rupee value specified at Clause 2 above/section VI-Schedule of Requirements of the bidding document and must be delivered at the address given below on/or before 15. 00 hrs (IST) on 23rd October 2003. Bids will be opened at 15. 15 hrs on 23rd October 2003, in the presence of the bidders or their representatives who choose to attend on the specified date and time at the office of the ELMARC Ltd. at the address given below : deputy General Manager (Procurement), elmarc Ltd. , 201-202, Mancheswar industrial Estate, bhubaneswear-751010, Orissa, India phone: 91-674-2583689, Fax: 91-674-2550779 project Director, orissa Health Systems Development Project"
( 2 ) PURSUANT to the said tender call notice, the petitioner, opp. party No. 4 and four others after purchasing the tender papers submitted their bids for supply of 30 numbers of X-Ray machines of 300m-A. It is the admitted case of the parties that out of the six bidders, four were treated as non-respo