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2016 Supreme(P&H) 891

IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH
S.J. VAZIFDAR & ARUN PALLI, JJ.
HDPL Infrastructure Limited – Petitioner
Versus
State of Punjab and Others – Respondents
Civil Writ Petition No. 7021 of 2016 (O&M)
Decided On : 06-06-2016

Advocates Appeared:
For the Petitioner:Mr. Akshay Bhan, Senior Advocate with Mr. Amandeep Singh, Advocate.
For the Respondent:Mr. Alok Jain, Additional Advocate General with Mr. Kamal Sehgal, Advocate.

The value stipulated in Clause 4.2(a) must include the road safety components specified in Clause 4.2(b) and the works mentioned in Clause 4.2(b) need not be performed as part of the contracts referred to in Clause 4.2(a. The experience of one of the members of a joint venture can be relied upon to establish the eligibility of the joint venture.

Headnote:

Eligibility - Tenders - Punjab State Road Sector Project - Clauses 4.2(a) and (b) - [4.2(a), 4.2(b)] - The court discussed the interpretation of Clauses 4.2(a) and (b) in the context of eligibility criteria for tenders under the Punjab State Road Sector Project. The court emphasized that the value stipulated in Clause 4.2(a) must include the road safety components specified in Clause 4.2(b) and that the works mentioned in Clause 4.2(b) need not be performed as part of the contracts referred to in Clause 4.2(a). The court also clarified that the experience of one of the members of a joint venture can be relied upon to establish the eligibility of the joint venture.

Fact of the Case:

The petitioner challenged the eligibility of respondent Nos. 4 and 5 in respect of tenders invited by the official respondents under the Punjab State Road Sector Project. There was a dispute regarding the components of the works relied upon by the parties to establish their eligibility, leading to a study of the contracts performed by respondent No.5. The interpretation of Clauses 4.2(a) and (b) was also disputed by the parties.

Finding of the Court:

The court held that the value stipulated in Clause 4.2(a) must include the road safety components specified in Clause 4.2(b) and that the works mentioned in Clause 4.2(b) need not be performed as part of the contracts referred to in Clause 4.2(a). The court also clarified that the experience of one of the members of a joint venture can be relied upon to establish the eligibility of the joint venture.

Issues: Dispute regarding the components of the works relied upon by the parties to establish their eligibility and the interpretation of Clauses 4.2(a) and (b).

Ratio Decidendi: The value stipulated in Clause 4.2(a) must include the road safety components specified in Clause 4.2(b) and the works mentioned in Clause 4.2(b) need not be performed as part of the contracts referred to in Clause 4.2(a. The experience of one of the members of a joint venture can be relied upon to establish the eligibility of the joint venture.

Final Decision: The official respondents were directed to re-evaluate the eligibility of the bids submitted by respondent No.5 in accordance with the court's interpretation of Clauses 4.2(a) and (b). The writ petition was accordingly disposed of.

JUDGMENT :

S.J. VAZIFDAR, J.

1. The petitioner has challenged the eligibility of respondent Nos. 4 and 5 in respect of the tenders invited by the official respondents.

As recorded in our order dated 24.05.2016, respondent No.4 stated that it was not entitled to be awarded the contract and desired, therefore, to be deleted from the array of parties. Respondent No.4 was accordingly deleted from the array of parties.

2. Respondent No.2 is the Chief Engineer, Punjab PWD (B&R). Respondent No.3 is the Punjab Road and Bridges Development Board. Respondent No.4 is RIPL-CEIGALL (JV) and respondent No.5 is MG-MCBSB- Joint Venture.

3. Respondent No.3-Punjab Road and Bridges Development Board received a loan from the World Bank towards the cost of the Punjab State Road Sector Project, a part of which it intends applying to payments under the Procurement of Works for Improvement of Black Spots on Core Road Network of Punjab (hereinafter to be referred to as “the said work”). Respondent No.3, as the implementing agency of the project, on 10th November, 2015, invited sealed bids from the eligible bidders in respect of the said work. The relevant provisions of the invitation for bids read as under:-

Eligibility and Qualification Criteria

Compliance Requirements

Documentation

No.

Subject

Requirement

Single Entry

Joint Venture (Existing or intended)

Submission Requirements

All parties combined

Each Member

One Member

4. Experience

4.1 (a)

General Construction Experience

Experience of general construction work in the role of prime contractor, JV member, subcontractor, or management contractor for at least the last 5 years, starting 1st April 2010

Must meet requirement

N/A

Must meet requirement

N/A

Form EXP-4.1

4.2 (a)

Specific Road safety works and Construction & Contract Management Experience

(i) A minimum number of Road safety works and/or Road construction contracts with road safety component specified below that have been satisfactorily and substantially completed as a prime contractor, joint venture member, management contractor or sub-contractor between 1st April 2010 and application submission deadline:-

 

(1) One contract, of minimum value Rs. 600 Million.

 

(2) Two contracts, each of minimum value Rs. 375 million.

 

(3) contracts, each of minimum value Rs. 300 million.

 

Note : For evaluation purposes, the work carried out during each of last 5 completed years shall be increased at the simple rate of 5% per annum to account for inflation. For part of the year proportionate increase shall be carried out.

Must meet requirement

Must meet requirement 11

N/A

N/A

Form EXP 4.2(a)

4.2 (b)

 

For the above and any other contracts completed and under implementation as prime contractor, joint venture member, management contractor or sub-contractor on or after the first day of the calendar year during the period stipulated in 4.2(a) above, a minimum construction experience in the following key activities successfully completed:-

 

Should have executed in any one year out of last three years preceding 1st April, 2015, the following minimum quantities of work:-

 

(i) Metal Beam crash Barrier: 4,000 m

 

(ii) Reflective pavement marker: 40,000 no.

 

(iii) Road marking with hot applied thermoplas tic compound: 10,000 sqm

Must meet requirement

Must meet requirement

N/A

Must meet the following requirements for the key activities listed.

Form EXP - 4.2(b)

9.…..…..…..…..

10.…..…..…..…..

11. In the case of JV, the value of contracts completed by its members shall not be aggregated to determine whether the requirement of the minimum value of a single contract has been met. Instead, each contract performed by each member shall satisfy the minimum value

























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