IN THE HIGH COURT OF PUNJAB AND HARYANA
Ajay Tewari, Jasgurpreet Singh Puri, JJ.
Gaurav Kumar - Appellant
Versus
Food Corporation Of India And Another - Respondent
Civil Writ Petition No. 7474 of 2020, 7442 of 2020, 7454 of 2020, 7455 of 2020, 7456 of 2020
Decided On : 23-07-2020
Tender Scrapping - Food Corporation of India - Food Corporations Act, 1964 - Section 37 - The judgment discusses the revocation of the scrapping of a tender by the Food Corporation of India (FCI) and the subsequent legal challenges. The court held that the FCI Headquarters had the authority to rectify the mistake made by the regional office in scrapping the tender. It also emphasized that the technically qualified bidders do not acquire a vested right for contract award, and the employer has the discretion to evaluate financial bids and award contracts in public interest. The court dismissed the petitions challenging the revocation of the tender scrapping and upheld the FCI's decision to process the tender further.
Fact of the Case:
The Food Corporation of India (FCI) invited e-Tenders for appointment of Handling and Transport Contractors (HTC). The tender enquiry dated 28.03.2020 was scrapped by the FCI Regional Office, Haryana, but later revived by the FCI Headquarters based on a legal notice served by a petitioner. The petitioners challenged the revocation of the tender scrapping and sought direction for allotment of work.
Finding of the Court:
The court held that the FCI Headquarters had the authority to rectify the mistake made by the regional office in scrapping the tender. It also emphasized that the technically qualified bidders do not acquire a vested right for contract award, and the employer has the discretion to evaluate financial bids and award contracts in public interest. The court dismissed the petitions challenging the revocation of the tender scrapping and upheld the FCI's decision to process the tender further.
Issues: The primary issue was the revocation of the scrapping of the tender by the FCI and the subsequent legal challenges by the petitioners. The court also addressed the petitioners' claim for allotment of work as L-1 bidders.
Ratio Decidendi: The FCI Headquarters had the authority to rectify the mistake made by the regional office in scrapping the tender. The technically qualified bidders do not acquire a vested right for contract award, and the employer has the discretion to evaluate financial bids and award contracts in public interest.
Final Decision: CWP No. 7474 of 2020 was disposed of as having become infructuous to the extent of the prayer made by the petitioner with regard to implementation of the order dated 08.05.2020. The remaining prayer of the petitioner with regard to seeking direction for allotment of work for HTC Alewa Negura, Pillukhera and Julana in favour of the petitioner as L-1 was rejected. CWP No.7442 of 2020, CWP No.7454 of 2020, CWP No.7455 of 2020, CWP No. 7456 of 2020 were dismissed being devoid of merit.
JUDGMENT
Jasgurpreet Singh Puri, J. - This judgment shall dispose of bunch of five writ petitions bearing CWP No.7442 of 2020, CWP No.7454 of 2020, CWP No.7455 of 2020, CWP No. 7456 of 2020 and CWP No. 7474 of 2020.
2. Prayer in CWP No. 7474 of 2020 is for issuance of writ in the nature of mandamus directing the respondents Food Corporation of India (hereinafter, referred to as 'FCI') to implement the letters dated 08.05.2020(Annexure P-6) and 12.05.2020(Annexure P-7) and to open the financial bids of the technically qualified bidders in pursuance to the initial tender enquiry dated 28.03.2020(Annexure P-1). Further prayer has been made to quash the subsequent e-Tender Notice / Tender enquiry dated 23.04.2020 (Annexure P-4) with a further prayer directing the respondents FCI to allot the work of the contract in favour of the petitioner.
3. However, in the remaining four writ petitions bearing CWP No.7442 of 2020, CWP No.7454 of 2020, CWP No.7455 of 2020, CWP No. 7456 of 2020 prayer has been made by the petitioners which is diametrically opposite to the aforesaid CWP No.7474 of 2020. For convenience, facts have been taken from CWP No.7442 of 2020. In these four writ petitions, the petitioners have sought issuance of writ in the nature of certiorari for setting aside the communication dated 12.05.2020(Annexure (P-11) whereby the cancellation of tender dated 28.03.2020 (Annexure P-1) was revoked and with a further prayer to proceed with opening of tender enquiry dated 23.04.2020(Annexure P-8).
4. The facts of these writ petitions are summarised as follows:-
CWP No.7474 of 2020
5. In CWP No. 7474 of 2020, Food Corporation of India which is a Statutory body set up under the Food Corporations Act, 1964 engaged in distribution, procuring and maintaining satisfactory level of operational and buffer stocks of food grains throughout the territory of India and to ensure national food security invited e-Tender for appointment of Handling and Transport Contractors (hereinafter, referred to as 'HTC'). Vide tender enquiry dated 28.03.2020 (Annexure P-1), the system of inviting on-line tenders is based upon two bid system at Central Public Procurement Portal for appointment of contractor for a period of two years. First bid pertains to technical bid and second bid pertains to financial bid. The aforesaid eTender pertains to two districts namely, FCI District Rohtak and FCI District Hisar. However, the subject matter of the present petition pertains only to FCI District Rohtak from which tender was invited for three places namely, Alewa Negura, Pillukhera and Julana. On receiving bids from various contractors including the petitioner and the petitioners of the connected writ petitions, FCI technically examined the bids and a number of bidders were found to be technically disqualified/ineligible. In HTC Pillukhera, one tenderer out of nine was found to be technically qualified, in HTC Julana, two tenderers were found to be qualified out of seven and in HTC Alewa Negura centre two tenderers were found to be technically qualified out of eight. However, instead of proceeding further for opening the financial bids of the qualified tenders, the General Manager/Haryana FCI scrapped the tender enquiry on the ground that there is less participation of bidders. Due to disqualification of more number of bidders, there will be a financial loss to the corporation and therefore, thought it fit to scrap the tender enquiry. In this way, the tender enquiry dated 28.03.2020 pertaining to the aforesaid centers was scrapped. Thereafter, fresh tenders were invited vide tender enquiry dated 23.04.2020 (Annexure P-4).
6. Petitioner namely, Gaurav Kumar was one of the technically qualified bidder for the aforesaid centres and being dis-satisfied by the aforesaid action of the FCI Regional office in scrapping the tender, served a legal notice dated 16.04.2020 (Annexure P-5) addressed to The Chairman cum Managing Director, Food Corporation of India, The Executive Direct
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