IN THE HIGH COURT OF ORISSA, CUTTACK
VINEET SARAN AND B.R. SARANGI, JJ.
Sri Ranjan Kumar Sahoo - Petitioner
Versus
Bharat Petroleum Corporation Ltd. - Opp. Party
W.P.(C) No.11008 of 2016
Decided On : 23-11-2016
TENDER REJECTION - Road Transportation of bulk POL products - K.h of NIT, Clause-14 of Attachment-1, Attachment-2, Clause 15(c) of Attachment-5, Clause-3 & 5 of Attachment-8 - The court analyzed the provisions of the tender documents and highlighted the non-compliance of the tender terms and conditions, the involvement of a vehicle in litigation, and the authority's power to accept or reject tenders.
Fact of the Case:
The petitioner submitted a bid for a tender issued by Bharat Petroleum Corporation Ltd. for road transportation of bulk POL products. The bid was rejected due to the involvement of one vehicle in litigation after the submission of the bid.
Finding of the Court:
The court found that the rejection of the bid was not justified as the petitioner's bid was in compliance with the tender terms and conditions at the time of submission. The court also highlighted the authority's power to accept or reject tenders under Clause-23 of the NIT.
Issues: The issues revolved around the rejection of the bid based on the involvement of a vehicle in litigation after the bid submission, the interpretation of tender terms and conditions, and the authority's discretion to accept or reject tenders.
Ratio Decidendi: The court held that the involvement of a vehicle in litigation after the bid submission should not lead to the rejection of the entire bid. The court emphasized the need for the authority to consider the tender submission as per the terms and conditions at the time of submission and the discretion provided under Clause-23 of the NIT.
Final Decision: The court quashed the rejection of the technical bid and allowed the petitioner to participate in the financial bid in accordance with the law.
JUDGMENT :
Dr. B.R. SARANGI, J.
Ranjan Kumar Sahoo, as the proprietor of M/s CBM Transport, has filed this writ application challenging rejection of his technical bid of the tender for “Road Transportation of bulk POL products (MS/HSD/SKO/Branded Fuels) Ex BPCL location at Paradeep in the State of Odisha” vide email dated 23.05.2016, annexure-5. The reason for such rejection has been indicated as non-compliance of criteria mentioned in K.h of NIT as well as Clause-14 of Attachment-1, Attachment-2, Clause 15(c) of Attachment-5, Clause-3 & 5 of Attachment-8 and Clause-14 of Attachment-1 of NIT.
2. The fact of the case, in a nutshell, is that Bharat Petroleum Corporation Ltd. (BPCL) invited sealed tender for “Road Transportation of bulk POL products (MS/HSD/ SKO/Branded Fuels) Ex BPCL location at Paradeep in the State of Odisha” for a period of five years from the tank-lorry owners, quoting minimum five tank lorries for award of contract. The bid contained two parts, namely, technical bid and financial bid. The last date and time of submission of tender documents was fixed to 16.03.2016 at 14.30 hrs. In response to the said tender call notice, the petitioner submitted his bid offering 11 tank lorries of his own and another tank lorry bearing registration no. OD 09E 4650 belonging to one Nirupama Padhi with an undertaking, as provided in Clause-14, that neither the tenderer nor any tank lorry offered by him was involved in any litigation. Before offering the vehicle of Nirupama Padhi, the petitioner had checked up the papers of her vehicle and found the same in order.
Meanwhile, on 03.05.2016, Keonjhar Town P.S. Case No. 306 of 2016 was registered against Nirupama Padhi, the owner of the vehicle no. OD 09E 4560 (which was offered by the petitioner in his bid as one of the twelve vehicles), showing as an accused. So far as other 11 vehicles of the petitioner are concerned, even though not a single scrap of paper was furnished indicating their involvement in any litigation, the petitioner’s technical bid was rejected vide annexure-5, the email dated 23.05.2016 apparently for non-compliance of the criteria mentioned in K.h of NIT as well as Clause-14 of Attachment-1, Attachment-2, Clause 15(c) of Attachment-5, Clause-3 & 5 of Attachment-8 and Clause-14 of Attachment-1 of NIT. On receipt of the same, though the petitioner made a representation along with price bid through email, the same was not accepted. Hence, this writ application.
3. Ms. S. Ratho, learned counsel for the petitioner states that by the time the petitioner submitted the technical bid on 16.03.2016, 11 vehicles of the petitioner including the vehicle bearing registration no. OD 09 E4560 of Nirupama Padhi were not involved in any litigation and, as it transpires from record, only on 03.05.2016, after the last date of submission of technical bid, Keonjhar Town P.S. Case No. 306 of 2016 was registered against Smt. Nirupama Padhi, the owner of the vehicle bearing registration no. vehicle no. OD 09 E4560 showing as an accused. Consequentially, the entire technical bid was cancelled on various grounds as mentioned above. Such action of the authority is absolutely outcome of non-application of mind and contrary to the provisions of law. To substantiate her argument, she relied upon the judgments in State of Punjab v. Bandeep Singh and others, (2016) 1 SCC 724, Rashmi Metaliks Limited and another v. Kolkata Metropolitan Development Authority and Others, (2013) 10 SCC 95, Union of India and others v. Dinesh Engineering Cooperation and another, (2001) 8 SCC 49, Sterling Computers Limited v. M/s. M & N Publications Limited and others, (1993) 1 SCC 445, Raunaq International Ltd. V. IVR Construction Ltd. AIR 1999 SC 393, M/s. Jadumani Transport & Others v. Bharat Petroleum Corporation Ltd. (W.P.(C) No. 9523 of 2016 disposed of on 24.06.2016) and Mahender Singh Gill v. Chief Election Commissioner, (1978) 1 SCC 405.
4. Mr. S.D. Das, learned Senior Counsel appearing for the opposite party-
State of Punjab v. Bandeep Singh and others
Rashmi Metaliks Limited and another v. Kolkata Metropolitan Development Authority and Others
Sterling Computers Limited v. M/s. M & N Publications Limited and others
Raunaq International Ltd. V. IVR Construction Ltd. AIR 1999 SC 393
Mahender Singh Gill v. Chief Election Commissioner
Central Coalfields Limited and Ors. V. SLLSML (Joint Venture Consortium) and others
Bakshi Security and Personnel Services Pvt. Ltd. V. Devkishan Computed Pvt. Ltd. And Ors.
Commissioner of Police v. Gordhandas Bhanji
Tata Cellular v. Union of India
Jagdish Mandal v. State of Orissa
Poddar Steel Corpn. V. Ganesh Engineering Works
B.S.N. Joshi and Sons Ltd. V. Nair Coal Services Ltd.
General Assurance Society Ltd. V. Chandmull Jain (1996) 3 SCR 500
AI
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.