2003 (Supp.) OLR — 626
A. K. PATNAIK AND CH. P. K. MISRA, JJ
M/s.Balangir Trading Co....Petitioner
Versus
Bharat Sanchar Nigam Limited and others...Opp. Parties
W.P. (C) No. 3592 of 2003
(Date of Judgment : 22.8.2003)
2. JUDICIAL REVIEW - Administrative matter - Tender - Freedom to be given to the administrative authority in a matter relating to contract - Decision of the administrative authority must be free from arbitrariness and unreasonabless and should not be affected by bias or actuated by mala fides. (Para - 8)
3. TENDER - Purpose for inviting tenders by a public authority:
(a)If offers a fair opportunity to all those concerned who are interested in a bidding for the contract.
(b)It affords the public authority a choice to select the best of the competitors on a comparative price without prejudice to the quality of the work.
By inviting tenders favouritism and discrimination in awarding public works to contractors are eliminated and in the public interest the authority must adhere to the rules and conditions under which the bids are invited. (Para - 9)
4. TENDER - Whatever procedure is to be followed by the authorities for considering the tenders should be clearly stated in the tender notice so that the consideration of the tenders in accordance with such procedure is transparent fair and open.
(Para - 12)
JUDGMENT
A. K. PATNAIK, J. — By an advertisement published in the Oriya daily newspaper in August, 2002, Bharat Sanchar Nigam Limited (for short, ‘the B.S.N.L.) invited sealed tenders from reputed organizations having at least two years experience in the sale of fast moving consumer goods (F.M.C.G.) items, electrical goods, I.T. products, computer hardware for appointment of deal¬ers (for post-paid service) on Telecom District basis and dis¬tributors (for Pre-paid service) on Telephone connection basis of B.S.N.L.’s Cellular Mobile Service. In response to the said advertisement, sixteen organizations including the petitioner submitted tenders for Bolangir - Bhawanipatna territory. The tenders of fifteen organizations including that of the petitioner were rejected by the Tender Evaluation Committee nominated by the B.S.N.L. on the ground that they did not satisfy the eligibility conditions laid in the advertisement. The opposite party No. 3 was the only tenderer found to be eligible by the Tender Evaluation Committee but the rate of Rs. 150/- for first activation and 8 per cent as recharge rate quoted by the opposite party No. 3 in its tender were not accepted and instead, after negotiation with the opposite party No. 3, the first activation charge at Rs. 95/- and re-charge at 6.5 per cent were accepted and the opposite Party No. 3 was selected and appointed and the agreement has been executed in favour of the opposite party No. 3 Bolangir - Bhawa¬nipatna Telephone District. Aggrieved, the petitioner has filed this writ petition under Article 226 of the Constitution with prayers to the Court to quash the entire tender process held for the Bolangir - Bhawanipatna territory and cancel the agreement/contract in favour of the opposite party No. 3 and to direct for fresh tenders in accordance with law.
2. This writ petition was heard along with W.P. (C) No. 2526 of 2003, and at the hearing Mr. Bijay Anand Mohanty, learned counsel, appearing for the petitioner, submitted that the adver¬tisement by which tenders were invited stipulated that for the dealership/distributorship for Bolangir - Bhawanipatna territory, the tender must have a turnover of rupees twenty-five lakhs and the petitioner who had turnover of more than rupees twenty-five lakhs submitted tender and had furnished all documents in support of the said turnover the yet the authority rejected his tender with the observation that “T/o is not authentic”. He submitted that if for some reason the authorities were of the view that the document in support of the turnover furnished by the petitioner along with his application was not authentic, the petitioner should have been afforded an opportunity to explain before the authority decided to reject tender of the petitioner. According to Mr. Mohanty , the conclusion of the authority that the turnover of the petitioner was not authentic was arbitrary and was liable to be quashed. Mr. Mohanty next submitted that in this case all the tenders except that of the opposite party No. 3 have been rejected by the Tender Evaluation Committee and the opposite party No. 3 has been selected by the Tender Evaluation Committee contrary to the selection criteria laid down in the advertise¬ment. He submitted that as per the selection criteria in the advertisement inviting tenders, weightage was to be given in the following manner :
Commission - 75 per cent
Experience - 20 per cent
Space (ground floor)/
Commercial location - 5 per cent
Mr. Mohanty submitted that the Tender Evaluation Committee was obliged to award marks as per the aforesaid weightage and select the tender who secured highest marks, they have selected the opposite party No. 3 who had quoted one of the height commissions much higher than most other tenderers including the petitioner. The Selection of the opposite party No. 3 by the Tender Evaluation Committee, Mr. Mohanty argued, was thus arbitrary, illegal and contrary to the rules and the procedure as advertised by the B.S.N.
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