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2023 Supreme(Ori) 273

ORISSA HIGH COURT: CUTTACK
B.R.SARANGI, M.S.RAMAN, JJ.
Mukesh Kumar Agrawal - Petitioner
Versus
State Of Odisha And Others – Respondents 
W.P.(C) NO. 18325 OF 2023
Decided On : 21-06-2023

Advocates Appeared:
For the Petitioner:M/s. S. Padhi, P.C. Nayak, Advocate
For the Respondent:Mr. P.P. Mohanty, Addl. Govt. Advocate, Mr. S.K. Mishra, Advocate

The court emphasized that strict compliance with tender conditions is essential and that arbitrary qualification despite disqualifications undermines the fairness required in the contracting process.

Headnote:(A) Tender Procedure - Violations of tender notice requirements - Non-compliance of eligibility criteria by certain bidders - Technical bids improperly qualified despite discrepancies in required documentation - Authority acted arbitrarily, devoid of adherence to established tender norms. (Paras 2, 3, 10, 17)

(B) Judicial Review - Scope of interference in tender matters - Examination of decision-making process for reasonableness and adherence to tender terms is permissible. (Paras 11, 12)

Facts of the case:
The petitioner seeks to challenge the qualification of technical bids by opposite parties, claiming disqualifications based on missing required documents as per the tender notice. The petitioner was qualified, yet the authority improperly allowed oppositional parties to proceed.

Findings of Court:
Technical bids were improperly allowed, disregarding express tender conditions; fresh tender process ordered.

Issues: Whether disqualified bidders can be allowed to participate; the validity of the qualification process by the tender authority; and whether a single bidder can be awarded a contract.

Ratio Decidendi: The court highlighted that once the tender conditions were established, deviations cannot be permitted and that bidders must meet all requirements to be qualified. Moreover, the process must be fair and consistent with public interest.

Result: Writ petition allowed; the selection process quashed; fresh tender to be conducted.

Table of Content
1. review of tender eligibility and qualifications. (Para 1 , 2)
2. arguments on bid disqualification and rectification. (Para 3 , 4 , 10)
3. court's analysis on adherence to tender process. (Para 5 , 6 , 7 , 8 , 9)
4. judicial review principles in contract and tender decisions. (Para 11 , 12 , 14 , 15)
5. final ruling on tender process validity. (Para 17 , 19 , 20)

JUDGMENT :

B.R. SARANGI, J.

The petitioner, by means of this writ petition, seeks to quash the decision making process adopted by the authority under Annexure-1 dated 25.05.2023 in qualifying the technical bid of the opposite parties no.5 and 6, who have not complied with the terms and conditions of the tender notice under Annexure-2 dated 26.04.2023; and to issue direction to the opposite parties to accept his price bid and issue work order in his favour within a stipulated time.

2. The factual matrix of the case, in a nutshell, is that opposite party no.4-Civil Supplies Officer (CSO)-cum- District Manager, Odisha State Civil Supplies Corporation (OSCSC) Limited, Nuapada on 26.04.2023 invited online public tender from eligible bidders for selection and appointment of Handling Contractors (Labour Works) for handling of food grains (rice and wheat) at all rice receiving centres (RRCs) in Nuapada district. As per the tender notice, the last date for submission of the bid through online was 15.05.2023. Pursuant to such tender call notice, three bidders, including the petitioner, were participated. The petitioner submitted the bid documents in terms of the checklist Appendix-II in complying with all eligible criteria and was qualified in the technical bid by the district tender committee.

2.1 In the proceeding of the tender committee, it was found that during scrutiny certain discrepancies were noticed in the tender documents furnished by two of the tenderers, namely, opposite parties no.5 and 6. The income tax return for the assessment year 2020-21 was not submitted through e-tender by opposite party no.5, but he had submitted copy of the income tax return for the assessment year 2020-21 through offline before the tender committee, which is not permissible after the last date and time of submission of bid was over. As per pre- requisite in clause-4, for qualification, a bidder was required to furnish a financial capacity certificate from any nationalized or scheduled bank, as per sample format prescribed Annexure-2 of the bid documents in terms of clause-4.1, whereas opposite party no.6 submitted capability certificate dated 13.04.2023, which was addressed to the District Manager, OSCSC Limited, Sambalpur and not in the model format as per Annexure- 2 of the tender. The district tender committee under Annexure-1 in contrary to the terms of the tender, as per the assurance of opposite party no.6 directed him to submit the correct capability certificate at the time of agreement, if selected. But as per the tender conditions the said certificate is required for technical qualification. Even though opposite parties no.5 and 6 incurred disqualification, the tender evaluation committee allowed them to participate in the technical bid, which was opened on 16.05.2023. As such, though the technical bids were opened in presence of the parties and their representatives, but the same was not provided in the website. On 25.05.2023, the proceeding was signed after nine days in which the authority, in an arbitrary manner without following fair and transparent procedure, qualified the technical bid of opposite parties no.5 and 6 under Annexure-1. Hence, this writ petition.

3. Mr. S. Padhi, learned counsel appearing along with Mr. P.C. Nayak, learned counsel for the petitioner at the outset contended that Sub-clause (x) of Clause-1 of the notice inviting tender under Annexure-2 issued for engagement of handling contractor 2023-25, which deals with Bidding Process, clearly provides that the bidder must submit the particulars/documents as detailed in check list (Appendix-II) onlin

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