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

2024 Supreme(Ori) 268

IN THE HIGH COURT OF ORISSA AT CUTTACK
B.R.SARANGI, G.SATAPATHY, JJ.
M/s. Swosti Powercon, Bargarh – Appellant
Versus
State of Odisha and Others – Respondents
W.P. (C) No. 32512 of 2023
Decided On : 05-03-2024

Advocates Appeared:
For the Appellants : Ipsit Aurobindo Acharya, C.K. Rout
For the Respondents: P.P. Mohanty, Ashok Kumar Panigrahi, Ankita Panigrahi

The court ruled that the tendering authority's rejection of the bid based on 'invalid HT License' was arbitrary and unreasonable, affirming the eligibility of the petitioner to participate in the bidding process.

Headnote:(A) Constitution of India - Article 226 - Tender Process - Writ Petition for quashing rejection of bid due to alleged invalid HT License - Validity of license confirmed as effective till 05.11.2023, meeting eligibility criteria - Tendering authority's decision deemed arbitrary and unreasonable, lacking proper consideration of documents - Court directs to allow participation in bid process. (Paras 10, 20, 22)

(B) Judicial Review in Contractual Matters - Courts may intervene in tender processes to prevent arbitrariness and irrationality, safeguarding public interest - Reasonable exercise of discretion by authorities required. (Paras 14, 16)

Facts of the case:
The petitioner, a proprietorship firm, sought to quash an order rejecting its tender bid on grounds of an invalid HT License. Validity was confirmed, asserting eligibility as per tender conditions.

Findings of Court:
The court found the rejection of the bid unjustified due to the misinterpretation of license validity, promoting arbitrary action by tendering authority.

Issues: Key issues involved determining the correctness of the HT License submission and the legality of the tender authority’s actions regarding bid rejection.

Ratio Decidendi: The court emphasized that a valid license exists, and the tender authority must consider the totality of licensing conditions, reinforcing the standard for fairness and non-arbitrariness in tender reviews.

Result: Writ petition allowed, directing the tendering authority to permit the petitioner to participate in the bid process.

Table of Content
1. tender application and eligibility criteria. (Para 1 , 2)
2. arguments on bid rejection and licensing issues. (Para 3 , 4 , 5)
3. procedural aspects and consent for admission. (Para 6 , 7 , 8)
4. assessment of validity of licenses submitted. (Para 9 , 10 , 11 , 12 , 13)
5. judicial review standards and contract law principles. (Para 14 , 15 , 16 , 17 , 18 , 19 , 20)
6. court's decision and directives regarding bid acceptance. (Para 21 , 22 , 23 , 24)

JUDGMENT :

B.R. SARANGI, J.

1. M/s. Swosti Powercon, Bargarh, a proprietorship firm, represented through its sole proprietor, has filed this writ petition seeking to quash the order dated 19.09.2023 rejecting his bid communicated through e-mail vide Annexure-3 series, and to direct the opposite parties to consider the HT License certificate along with the bid of the petitioner correctly as per website copy in https:// eiceletricityodisha.nic.in, as mentioned in the representation vide Annexure-5 series, and also to allow the petitioner to participate in the bid and to issue LOA/Work Order in its favour in the event of success in the bid.

2. The factual matrix of the case, in brief, is that the Executive Engineer, Sonepur Lift Irrigation Division-opposite party no.3 issued tender call notice on 01.08.2023 in respect of 90 numbers of packages for the work “Installation and Energisation of (Revival) River Lift Irrigation Projects with Supply of all materials on Turnkey basis The estimated cost for each package, EMD amount and cost of bid documents were mentioned in the Detailed Tender Call Notice dated 01.08.2023. The last date to submit the bids was fixed to 24.08.2023 and the date and time for opening of tender was mentioned as 25.08.2023 at 11.00 AM. As per the conditions stipulated in the tender call notice, the petitioner, having the required eligibility criteria, applied for the same. The petitioner was having the H.T. License bearing No. 3104, which was valid till 05.11.2023, i.e. for the period of more than one month from 25.08.2023 (date of opening of tender). The petitioner submitted its bids for 12 different numbers of packages under DTCN dated 01.08.2023 including the present package. It had also entered into an agreement with another contractor for the civil work part under the package, as allowed in terms of the DTCN dated 01.08.2023. The petitioner had submitted the Electrical (HT) License-HT 3104 issued by the Electrical Licensing Board Odisha (ELBO)-opposite party no.4 dated 13.12.2021, which was valid till 05.11.2023. As per the conditions stipulated in the tender document, the petitioner applied for the work in question, but opposite party no.3 issued an e-mail on 19.09.2023 stating that its bid has not been accepted. On 19.09.2023, rejection order was uploaded on the portal wherein the reason for rejection of the bid of the petitioner was mentioned “Invalid HT License submitted”. Hence, this writ petition.

3. Mr. I.A. Acharya, learned counsel appearing for the petitioner contended that the bid identification no. OLIC-SNP 01/2023-24 dated 01.08.2023 clearly indicates the date and time for opening of tender in the office of the Executive Engineer, L.I. Division, Subarnapur on 25.08.2023 at 11.00 Hrs. Clause-2.2 of the said bid identification prescribes eligibility that the contractor should have valid civil license of requisite class as per the Tender Call Notice and valid H.T. license issued by ELBO and validity of both the licenses should be for a period at least one month from the date of the opening of the tender. It is contended that if the advertisement shows the date of opening of the tender as 25.08.2023, the validity of the licenses should be till 25.09.2023. Learned counsel for the petitioner brought to the notice of this Court with regard to the Electrical Contractor License granted in favour of the petitioner, wherein the validity period has been prescribed as 05.11.2023. Therefore, it is contended that by the time the advertisement was issued,

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