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2018 Supreme(UK) 198

IN THE HIGH COURT OF UTTARAKHAND AT NAINITAL
K.M. Joseph, Sharad Kumar Sharma, JJ.
M/s Satya Sai Builders and Contractors – Appellant
Versus
M/s Lakshay Constructions and Others – Respondents
Special Appeal No. 297 of 2018
Decided On : 10-05-2018

Advocates Appeared:
For the Appellants : Mr. T.A. Khan, Mr. Aditya Kumar Arya.
For the Respondents: Mr. Rajendra Singh Azad, Mr. Pradeep Joshi.

The central legal point established in the judgment is the importance of adhering to tender conditions, including the duty to communicate the rejection of technical bids and the requirement of submitting the hard copy.

Headnote:

Tender - E-Tendering - [Section 4 of the ITB conditions, Clause 26 of the Conditions of Contract, Clause 23 of the Conditions of Contract] - The court discussed the violation of tender conditions, duty to communicate the rejection of technical bid, and the requirement of submitting the hard copy. The key legal provisions discussed were Section 4 of the ITB conditions, Clause 26, and Clause 23 of the Conditions of Contract, which were interpreted to determine the responsiveness of the bids and the procedures for bid opening and evaluation.

Fact of the Case:

The writ petitioner participated in a tender for flood construction work, and his technical bid was rejected. He sought quashing of the rejection and mandamus to open the financial bid afresh. The learned Single Judge allowed the writ petition, quashed the bidding process, and directed fresh bids to be invited.

Finding of the Court:

The court found that the rejection of the technical bid without informing the petitioner violated the tender conditions. It also noted discrepancies in the timing of bid decisions and the duty to submit the hard copy. The court concluded that the judgment of the learned Single Judge should be set aside.

Issues: Violation of tender conditions, duty to communicate rejection of technical bid, requirement of submitting the hard copy

Ratio Decidendi: The court's decision was influenced by the violation of tender conditions, the duty to communicate the rejection of the technical bid, and the requirement of submitting the hard copy. It interpreted the key legal provisions to determine the responsiveness of the bids and the procedures for bid opening and evaluation.

Final Decision: The Appeal was allowed, and the judgment of the learned Single Judge was set aside.

JUDGMENT :

K.M. Joseph, J.

1. When the appeal was taken up, though it was listed for admission, on agreement of the both the parties, the Appeal was itself heard.

2. Appellant is the 7th respondent in the writ petition. Writ petitioner and the appellant participated in a tender, which was done through e-tendering for flood construction work on right bank of river Mandakini. The work consisted of two stages, namely, technical and financial. The technical bid of the writ petitioner was rejected. This occasioned filing of the writ petition and he sought quashing of the order dated 31.10.2017 issued by respondent nos. 2 to 6 Committee (Annexure-11 to the writ petition). A mandamus was sought to command acceptance of his technical bid and also to open the financial bid afresh considering the technical bids of the petitioner and other successful bidders. Be it noted that on the basis of opening of the financial bid, bid of the appellant was found to be apparently lowest and it was accepted.

3. The learned Single Judge allowed the writ petition. The reasoning of the learned Single Judge appears to be as follows:

“Tenders were invited by respondent no. 3 from eligible candidates on 22.09.2017. The auction was to be done by way of two-tier bidding process. The technical bids were to be opened on 31.10.2017 and after evaluation of the technical bids, the financial bids of the persons, who qualified in the technical bids were to be opened on 21.11.2017.”

4. Thereafter, the learned Single Judge reasons as follows:

“8. It is an admitted case of the State Government that the technical bid of tuhe petitioner has been rejected but it was never informed to the petitioner prior to 21.11.2017, the admitted case of the respondents is that the technical bid was uploaded on 21.11.2017 and financial bid was opened on the same day at 05.18 P.M. This is clearly the violation of the tender conditions. By not informing the petitioner that he has been unsuccessful in his bid, the essential condition of the tender has been violated. Had the petitioner been informed in time that his technical bid has been rejected, he could have made a representation before the respondent authorities to make out a case that the rejection of his technical bid is on non-essential ground and they may reconsider his bid. This opportunity, however, was never given to the petitioner. Moreover, out of the total 17 candidates, the technical bids of 14, candidates have been rejected and only three candidates were declared successful in the technical bid.

9. The comparative rates of the three companies who have qualified the technical bid show that the difference in rates bid made by them is extremely marginal. However, nothing needs to be said on this aspect.”

5. He notes that normally, the Court would have refrained from interfering in such matters, which are purely commercial in nature, but since in the present case, there has been a clear violation of the tender conditions, therefore, an interference is required in this matter. The writ petition was allowed and the entire bidding process adopted by the respondents was quashed and fresh bids were directed to be invited by the respondents in accordance with law.

6. We heard Mr. T.A. Khan, learned Senior Counsel on behalf of the appellant, Mr. Rajendra Singh Azad, learned counsel for the writ petitioner and Mr. Pradeep Joshi, learned Standing Counsel on behalf of the official respondents.

7. Mr. T.A. Khan, learned Senior Counsel would submit that this is a case, where the writ petitioner had not complied with the mandatory conditions and, therefore, his technical bid was rejected; whereas, appellant’s bid, which was found responsive, was processed and the contract was finalized in his favour, but what is more, approximately 35 per cent of the work has already been carried out. He would submit that there was no basis for the learned Single Judge to interfere with the matter as the technical bid of the writ petitioner was not responsive.

8. Per







































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