SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Audio Icon Pause Audio Icon
judgment-img

2025 Supreme(Ori) 369

IN THE HIGH COURT OF ORISSA AT CUTTACK
Harish Tandon, C.J., Murahari Sri Raman, J.
M/s. Budharaja Mining and Construction Limited - Petitioner
Versus
Odisha Mining Corporation Limited, Bhubaneswar and others - Opposite parties
WP(C) No.33546 of 2025
Decided On : 01-12-2025

Advocates Appeared:
For the Petitioner:Mr. Surya Prasad Mishra, Senior Advocate assisted by Mr. Avijit Pal, Advocate
For the Opposite Party :Mr. Pravat Kumar Muduli, Advocate

Adherence to tender eligibility criteria is crucial, and experience from joint ventures does not qualify as single entity experience as per prescribed definitions in the tender documents.

Headnote:(A) Tender Documents - Clauses 4.1.1, 4.1.3, and 4.1.13 - Bid rejection pursuant to ineligibility criteria based on prior contract termination - The court emphasized that bid eligibility must be strictly interpreted as prescribed in the tender documents - A joint venture's experience cannot be counted as single entity experience, adhering to a literal interpretation of the terms. (Paras 1, 6.2)

(B) Judicial Review in Tendering Process - Authority authoring tender documents is best qualified to interpret terms; judicial intervention is limited to preventing arbitrariness or illegality - Clear exclusion of joint venture experience in eligibility criteria upheld by the court, affirming minimal court interference. (Paras 6.1, 6.2)

Facts of the case:
The petitioner, having participated in a tender for a mining contract, had its bid rejected at the technical bid stage due to ineligibility arising from prior contract termination. The petitioner claimed sufficient experience under different provisions of the tender document.

Findings of Court:
The rejection of the petitioner’s bid was justified as per the tender eligibility criteria, and the experience from the joint venture was not considered sufficient as per the definition outlined in the tender documents.

Issues: Whether work executed as part of a joint venture qualifies as adequate experience for eligibility in tender criteria.

Ratio Decidendi: The court ruled that only experience accumulated by a single entity, as defined in the tender documents, could fulfill the eligibility requirements; thus, the rejection of the bid was upheld.

Result: Writ petition dismissed.

Table of Content
1. eligibility criteria for tender bidding. (Para 1 , 2)
2. requirements of executing similar works in bidding. (Para 3)
3. debate over joint venture experience's eligibility. (Para 4)
4. authority's interpretation of tender documents. (Para 5 , 6)
5. dismissal of writ petition. (Para 7)

ORDER :

1. The bid submitted by the petitioner is rejected at the technical bid stage as it did not meet the eligibility criteria enshrined under Clause-4.1.13 of the tender document.[Clause 4.1.3 of Request for Proposal No. 192/OMC/P&T/2025 dated 10.09.2025 floated by the Odisha Mining Corporation Ltd. stands as follows:
“4.1.3 The Bidder whose contract/agreement with OMC had been terminated within preceding 3 (three) years from the date of this RfP will not be eligible to take part in the Bidding Process. For the avoidance of doubt, it is clarified that the above ineligibility shall not affect and disentitle a Bidder from submitting the Bid if the termination of the contract/agreement with OMC is not attributable to the said Bidder.”]

2. Admittedly, the petitioner participated in the tender floated by the Odisha Mining Corporation Limited for “Selection of Mine Operator for Unchabali (Mahaparbhat) Iron Ore Mine through Reverse Auction bidding process” and annexed the experience certificate as envisaged under the clause-4.1 of the tender document, which according to the petitioner, exceeds the pecuniary limits set forth in clause-4.1.1 of the tender document. According to the petitioner, the authorities have mechanically rejected the bid submitted by the petitioner without considering that it had enough experience in executing the “similar nature of work” and in fact had completed the work much above the value as set forth in clause-4.1.1 of the tender document.

3. Clause-4.1.1 is quoted for the purpose of considering the points so raised by the petitioner in the instant writ petition, which runs thus:

“4.1 Technical Criteria:

4.1.1. A) The Bidder shall have successfully executed similar works for the Considered Mineral, for a minimum amount of INR 11.68 Cr in case of a single work or INR 19.46 Cr in case of 2 (two) works in any one of the immediately preceding 10 (ten) financial years excluding the year of floating of this RfP.

OR

B) The Bidder shall have successfully executed similar works for the Considered Mineral, for a minimum production not less than 3 lakh MT from any of its single opencast mine or a minimum production not less than 5 lakh MT from any of its two opencast mines, in any one of the immediately preceding 10(ten) financial years excluding the year of floating of this RfP.

“SIMILAR WORK” shall mean drilling, excavation, transportation of Ore/Waste done as part of a single contract, for the Considered Mineral by engaging required manpower and machineries.

“CONSIDERED MINERAL” shall mean Iron, Chrome, Manganese, Bauxite, Coal/Lignite or any other minerals (excluding minor minerals as per Mines and Minerals (Development and Regulation) Act, 1957 and its subsequent amendments) ”

3.1. It is manifest from bare reading of the aforesaid clause that “bidder” should have executed “similar work” for a minimum amount of Rs.11.68 crores in case of a single work and Rs.19.46 crores in case of two works in any one of the immediately preceding ten financial years. The “similar work” as defined does not invite any ambiguity and/or discrepancy in understanding the same.

4. The point which voiced out in the instant case, whether the experience gained by the petitioner and the work executed as a constituent of the joint venture can be counted and/or taken as the eligibility criteria as enshrined in the said clause.

5. Clause-4.1.13 of the tender document is a repository of the consideration to be undertaken by the authority for the eligibility to participate in the said tender process both on the basis of the experience and the other criteria of a Company (Private or Public) or a Limited Liability Partnership (LLP). Clause-4.1.6 expanded the de

Click Here to Read the rest of this document
1
2
3
4
5
6
7
8
9
10
11
SupremeToday Portrait Ad
supreme today icon
logo-black

An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers

Please visit our Training & Support
Center or Contact Us for assistance

qr

Scan Me!

India’s Legal research and Law Firm App, Download now!

For Daily Legal Updates, Join us on :

whatsapp-icon Back to top