IN THE HIGH COURT OF ALLAHABAD
DEVENDRA KUMAR UPADHYAYA, SUBHASH VIDYARTHI, JJ.
M/s Sulbha Enterprises – Petitioner
Versus
Chairman U.P. Jal Nigam Urban Lucknow and Others – Respondents
Writ (C) No. 28810 of 2021
Decided On : 16-06-2022
TENDER PROCESS - CHALLENGE - CONSTITUTION OF INDIA - Article 226 - 2.30(f), 2.30(h), 2.30(l), 3.4 - The court discussed the tender process challenge under Article 226 of the Constitution of India. The key legal provisions discussed were 2.30(f), 2.30(h), 2.30(l), and 3.4, which related to the character certificate, bank solvency certificate, experience certificate, and equipment/machines requirements. The court highlighted the arbitrariness and illegality in the tender process and the non-fulfillment of essential tender conditions by the respondent nos.5 and 6.
Fact of the Case:
The petitioner challenged the tender process conducted by the Construction and Design Services, Uttar Pradesh Jal Nigam for rehabilitation, cleaning, and maintenance work of sewer line. The petitioner's technical bid was rejected, and the technical bids of respondent nos.5 and 6 were accepted. The petitioner alleged unfairness and illegality in the tender process.
Finding of the Court:
The court found substantial irregularities and arbitrariness in the tender process, including the acceptance of technically ineligible bids and the procurement of documents after the technical bid opening to justify the eligibility of respondent nos.5 and 6. The court concluded that the entire tender process and the Letter of Award issued in favor of respondent no. 5 were quashed, and the respondent-organization was directed to initiate the tender process afresh.
Issues: The issues involved the rejection of the petitioner's technical bid, the acceptance of technically ineligible bids, and the fairness and legality of the tender process.
Ratio Decidendi: The court's decision was based on the finding of substantial irregularities and arbitrariness in the tender process, which violated the principles of equality and non-arbitrariness as enshrined under Article 14 of the Constitution of India.
Final Decision: The writ petition was allowed, quashing the entire tender process and the Letter of Award issued in favor of respondent no. 5. The respondent-organization was directed to initiate the tender process afresh.
JUDGMENT :
1. By means of this petition filed under Article 226 of the Constitution of India challenge has been made by the petitioner-firm to the tender process conducted by the Construction and Design Services, Uttar Pradesh Jal Nigam (Urban) Lucknow for execution of work relating to rehabilitation, cleaning and maintenance work of sewer line at Bachcha Park to Hapur Road, Meerut.
2. Heard Shri Vivek Raj Singh, learned Senior Advocate, assisted by Shri Akshat Kumar, Advocate for the petitioner, Shri Rishabh Kapoor, learned counsel representing the respondent nos.1 to 4, Shri Ajay Kumar Gupta, learned counsel representing the respondent no. 5 and Ms. Kaviya Singh, learned counsel representing the respondent no. 6 and perused the records available before us on this writ petition.
3. For execution of the aforesaid work, a tender notice dated 01.11.2021 was issued inviting e-tender. As per the said tender notice, the technical bid was to be opened first on due date and time and the time and date of financial bid of those contractors who qualified the technical bid was to be opened at a later date.
4. Pursuant to the tender notice dated 01.11.2021, the petitioner which is a proprietorship firm and is said to be engaged in the business of government contracts of cleaning and maintenance of sewer line for past 18 years submitted its bid along with other bidders. The technical bids of the participants, including that of the petitioner, were opened on 16.11.2021, however, by means of an Office Memorandum dated 30.11.2021 it was communicated that out of three bidders, technical bid of respondent nos.5 and 6 were found to be eligible and accordingly the date for opening of financial bid was fixed to be 02.12.2021. The Office Memorandum dated 30.11.2021 which has been annexed as annexure 2 to the writ petition does not disclose any reason as to why the technical bid of the petitioner was not declared eligible. It only mentions that the technical bid of two bidders, that is, those of respondent nos.5 and 6 were found to be eligible.
5. Learned Senior Advocate representing the petitioner-firm has submitted that as per the information available on the E-portal of the respondent-organization, it was only mentioned that technical bid submitted by the petitioner did not qualify in technical evaluation as per the NIT (Notice for Invitation of e-Tender). The tender summary report is available at page 201 as Annexure-8 to the writ petition. From perusal of this report what we find is that as against the technical bid submitted by the respondent nos.5 and 6 “qualified in technical bid evaluation” is written whereas as against the petitioner-firm “not qualified in technical evaluation from the NIT” is written. Neither the said tender summary report, nor the office memorandum dated 30.11.2021 discloses any reason as to why the technical bid of the petitioner-firm was not found eligible.
6. The petitioner is said to have made certain objections vide letters dated 01.12.2021 and 03.12.2021 against disqualification of its technical bid to the respondent-organization, however, as submitted by the learned counsel for the petitioner-firm, the objections raised by the petitioner-firm were not taken into account; neither any decision was taken thereon. It has been submitted by the learned Senior Advocate representing the petitioner that in fact the respondent nos.5 and 6 whose technical bids were accepted also did not qualify inasmuch as they did not fulfill the tender conditions. It has, thus, been argued that the impugned action on the part of the respondent-organization in rejecting the technical bid of the petitioner and thereafter declaring the technical bid of the respondent nos.5 and 6 eligible is completely illegal and arbitrary.
7. Further submission made by the learned Senior Advocate representing the petitioner is that the facts of the case clearly establish that the fairness which is expected in processing the tender has not been followed in the insta
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