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2022 Supreme(All) 1360

IN THE HIGH COURT OF ALLAHABAD
Attau Rahman Masoodi, Om Prakash Shukla, JJ.
Ziqitza Health Care Ltd. Thru. Its Authorized Representative Deepak Kharbanda – Petitioner
Versus
State of U.P. Thru. Prin. Secy. Deptt. Of Animal Husbandry Lko. And Another – Respondents
Writ C No. 7917 of 2022
Decided On : 20-12-2022

Advocates:
Advocate Appeared:
For the Petitioner: Sunil Kumar Chaudhary, Kapil Misra

The court emphasized the authority's discretion in interpreting and accepting tender conditions, cautioning against unnecessary interference in commercial matters and emphasizing the limitations of judicial review in tender matters.

Headnote:

Tender - EMD Requirement - Clause 12(c) of the Tender Document - [Livestock Health & Disease Control Scheme] - [Negotiable Instrument Act, 1881, Uttar Pradesh Procurement Manual] - The court dismissed the writ petition challenging the rejection of the petitioner's bid due to non-compliance with the Earnest Money Deposit (EMD) requirement. The court held that the petitioner's submission of Fixed Deposit Receipts (FDR) in their own name, lien marked in favor of the authority, did not fulfill the requirement of clause 12(c) of the Tender Document, which specified the form and payee of the EMD. The court emphasized the authority's discretion in interpreting and accepting tender conditions, cautioning against unnecessary interference in commercial matters.

Fact of the Case:

The petitioner challenged the rejection of their bid for a tender due to non-compliance with the EMD requirement. The petitioner submitted FDR in their own name, lien marked in favor of the authority, which the Technical Evaluation Committee found non-responsive.

Finding of the Court:

The court dismissed the writ petition, holding that the petitioner's EMD did not fulfill the requirement of the Tender Document. The court emphasized the authority's discretion in interpreting and accepting tender conditions, cautioning against unnecessary interference in commercial matters.

Issues: Compliance with EMD requirement, Interpretation of tender conditions, Judicial review of tender decisions

Ratio Decidendi: The court refrained from imposing its decision over the decision of the employer as to whether or not to accept the bid of a tenderer, emphasizing the authority's discretion in interpreting and accepting tender conditions. The court cautioned against unnecessary interference in commercial matters and emphasized the limitations of judicial review in tender matters.

Final Decision: The writ petition was dismissed, and the interim order was vacated. The respondent was free to proceed with the tendering process as per law.

JUDGMENT :

Om Prakash Shukla, J.

1. Heard Shri. S.C. Mishra, learned Senior Counsel assisted by Shri Sunil Kumar Chaudhary, learned Counsel for the petitioner and Shri Ramesh Kumar Singh, learned Additional Advocate General assisted by Shri Rakesh Vajpayee, learned Additional Chief Standing Counsel for the State.

2. The present writ petition has come to be filed by the petitioner invoking the writ jurisdiction of this Court, thereby seeking two fold prayer; (i) quashing of order dated 07.11.2022 uploaded on the official website of the Department of Animal husbandry on 09.11.2022, whereby the bid submitted by the petitioner has been declared as non-responsive for the reason that the same did not meet the requirement of clause 12(c) of the RFP relating to the aspect of submission of EMD and (ii) challenge to the order dated 09.11.2022 has been also made, whereby the tender summary report was uploaded and the Department of Animal Husbandry has fixed the date of opening of financial bids on 10.11.2022 at 2:30 PM.

3. Since the financial bid of the bidders, who have been found to be qualified in the technical process were going to be considered in the after-noon of the same day, this court, as an interim measure vide its order dated 10.11.2022 had directed that the petitioner’s financial bid be also included in the process of consideration, failing which the contract shall not be finalized without leave of this court.

4. The brief facts germane for deciding the present issue raised before this court lies in a narrow compass. The Government of India having envisaged its ambitious scheme relating to livestock health launched the “Livestock Health & Disease Control Scheme”. The Operational Guidelines for Livestock Health and Disease Control was issued subsequently, which inter-alia imbibed the need for Establishing and Strengthening of Veterinary Hospitals and Dispensaries (ESVHD) and Mobile Veterinary Units (MVU). The State of Uttar Pradesh keeping in view the operational Guidelines and acting through the office of Director, Disease Control & Farms, Department of Animal Husbandry, Uttar Pradesh, Lucknow invited e-tender for hiring of services of support organizations to operationalize the Mobile Veterinary Unit (MVU) at different locations/ department institutions of the state of Uttar Pradesh along with establishment of call center.

5. Although a tender for operation of the aforesaid MVU was floated wherein the entire State was taken as a Unit for bid, however subsequently, a policy decision was taken by the state of Uttar Pradesh for regulating the effective operation of MVU and as such as per the new policy, the State of Uttar Pradesh was divided into five clusters/packages. It was envisaged in the policy that though any bidder can bid for any number of packages, but a successful bidder even if it is L-l in more than one Package will be given only one Package for operation depending upon his preference. Once, the said preference had been exercised, the other Package would go to L-2 bidder upon its choice, provided it agrees to work at the rates of L-1.

6. The policy being at place, the State of Uttar Pradesh through the Director, Disease Control & Farms, Department of Animal Husbandry, Uttar Pradesh, Lucknow, notified the Tender. Apparently, the Notice Inviting tender was issued on 02.09.2022 and the pre-bid meeting was slated to be on 09.09.2022 and the Bid due date was 03.10.2022. The Notice inviting Tender contained the time schedule for different stages as well as the important Conditions including the Condition of “Earnest Money Deposit (EMD)”. The relevant extract from Notice inviting Tender is as under:

Date of Issue of Tender Notice

02/09/2022 (5.00PM)

Start date-downloading of online Tender Document

02/09/2022 (5.30PM)

Pre-Bid Meeting

09/09/2022 (From 3.00PM to 6.00 PM)

Uploading of corrigendum

To

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