IN THE HIGH COURT OF UTTARAKHAND AT NAINITAL
SHARAD KUMAR SHARMA, J.
Khushal Singh Adhikari – Petitioner
Versus
State of Uttarakhand and Others – Respondents
Writ Petition No. 2371 of 2021
Decided On : 12-05-2022
The court held that the interim order staying the tendering process for a road construction project in the hills was not justified and should be vacated. The court found that the petitioner's interpretation of the term "tractor" in the standard bidding document was incorrect and that the tractor in question was an agricultural implement, not a commercial vehicle. The court also found that the grant of an interim order in a contractual matter, where the controversy arises out of the appropriate interpretation of the terms of the bidding document, should only be considered when there is an overwhelming public interest in entertaining the petition. In this case, the court found that the public interest in completing the road construction project outweighed the private interest of the petitioner.
Fact of the Case:
The petitioner, a sole proprietorship firm, participated in a tendering process for a road construction project in the hills. The petitioner's bid was rejected on the ground that the tractor it proposed to use was an agricultural tractor, not a commercial vehicle. The petitioner challenged the rejection of its bid in court and obtained an interim order staying the tendering process.
Finding of the Court:
The court found that the petitioner's interpretation of the term "tractor" in the standard bidding document was incorrect. The court found that the tractor in question was an agricultural implement, not a commercial vehicle. The court also found that the grant of an interim order in a contractual matter, where the controversy arises out of the appropriate interpretation of the terms of the bidding document, should only be considered when there is an overwhelming public interest in entertaining the petition. In this case, the court found that the public interest in completing the road construction project outweighed the private interest of the petitioner.
Issues: 1. Whether the petitioner's interpretation of the term "tractor" in the standard bidding document was correct. 2. Whether the grant of an interim order in a contractual matter, where the controversy arises out of the appropriate interpretation of the terms of the bidding document, is justified.
Ratio Decidendi: 1. The court found that the petitioner's interpretation of the term "tractor" in the standard bidding document was incorrect. The court found that the tractor in question was an agricultural implement, not a commercial vehicle. The court relied on the definition of "tractor" in the Motor Vehicle Act, 1988, and the Central Motor Vehicle Rules, 1989, to support its finding. 2. The court found that the grant of an interim order in a contractual matter, where the controversy arises out of the appropriate interpretation of the terms of the bidding document, should only be considered when there is an overwhelming public interest in entertaining the petition. The court relied on a number of Supreme Court judgments to support its finding.
Final Decision: The court vacated the interim order staying the tendering process for the road construction project.
JUDGMENT :
SHARAD KUMAR SHARMA, J.
1. The stage of the proceedings of the writ petition, at which this Court is called upon to consider the stay vacation application, for the purposes of scrutinizing the veracity of the interim order dated 18.11.2021, which has been passed by the court in a contractual matter, where it effects the Work Package No. 07-08 for Stage II work of motor road from Rati Ghat to Budhlakot, is required to be considered, as to whether at all there could be a stay of the tendering process, by virtue and as a consequential effect of which, would be that the entire work of a project for laying down the roads in the hill areas has been kept at a halt.
2. This Court has had to refer to each of the elaborate arguments, which has been extended by the learned counsels, for the petitioner, as well as, that of the respondents, wherein the counsel for the petitioner has rather contended, that grant of an interim order in the instant case was imminent because in the absence of the same it would have completely rendered the lis itself infructuous, wherein in the writ petition the petitioner has put a challenge to the order of 30.11.2011, as uploaded 01.11.2021, which was passed by the respondents employer rejecting the technical bid of the petitioner, in the tendering process which has been initiated as a consequence of the invitation of bids in pursuance to the publication Reference No. 1421/11-02/(XIX) ITCO/URRDA/21 dated 01.09.2021.
3. It becomes inevitable for this Court to avoid to consider the backdrop, though in a precise manner, to answer the argument which has been extended by the learned counsel for the petitioner. The petitioner has submitted, that it is a sole proprietorship firm, which has been registered, as an A class contractor with the PWD Department and is engaged in the work of construction of roads and as per the invitation of bids by NIT dated 01.09.2021, issued by URRDA in respect of the aforesaid work package. The petitioner submitted, that as per the tender summary report of 9th October 2021, when it was uploaded by the respondents, the bid of the petitioner along with the seven other bidders were held to be technically responsive in terms of Clause 22.5 of the standard bidding document.
4. The petitioner submits, that once the petitioner’s bid has been declared as to be a technically responsive bid by an order of 09.10.2021 in that eventuality the impugned action, which has been taken by the respondents on the basis of a private complaint, which was submitted by the respondent no. 5, herein on 13.10.2021, whereby while taking a decision on the same, the petitioner’s bid was technically held to be non-responsive by the order dated 01.11.2021, for the grounds which has been mentioned in the impugned order. The petitioner had submitted, that while the objections which were raised by the private respondent no. 5, to the bid submitted by the petitioner and after its declaration as to be technically viable, the petitioner submitted in the reply dated 14.10.2021, while replying to show cause dated 13.10.2021 that as per the standard bidding document Section 2, which was an instruction to the bidders and the appendix attached to the standard building document in its ITB 4.4 B)(b)(i), which is extracted hereunder:
The key equipments for road works
and field testing laboratory Road
Works are:
For Road works.”
5. He has submitted that he has placed on record the papers of three “tractors” which were required to be furnished by the prospective bidders, as one of the pre-condition to be full filled in order to establish the availability of the required technical equipment, which would be required for the purposes of execution of the work of construction of road, as covered by the bidding process adopted by the respondents.
6. A very interesting distinction has been carved out by the counsel for the petitioner, that if the standard bidding document itself is taken into consideration, which stipulated tha
New India Assurance Company Limited vs. Sandepudi Mariyamma and Others
National Insurance Co. Ltd. vs. V. Chinnamma and Others
National Insurance Co. Ltd. vs. V. Chinnamma and Others
United India Insurance Co. Ltd. vs. Hanamanthappa
State of Himanchal Pradesh vs. Umed Ram Sharma and Others
Tata Cellular vs. Union of India
National Insurance Co. Ltd. vs. Challa Bharathamma
Raunaq Internationals Limited vs. I.V.R. Construction Ltd. and Others
Satya Jain (Dead) through LRs. and Others vs. Anis Ahmed Rushdie (Dead) through LRs. and Others
Afcons Infrastructure Ltd. vs. Nagpur Metro Rail Corporation Ltd. 2016 (16) SCC 818
Montecarlo Ltd. vs. NTPC Ltd. 2016 (15) SCC 272
Jagdish Mandal vs. State of Orissa
Caretel Infotech Ltd. vs. Hindustan Petroleum Corporation Limited and Others
(1) Tender – Courts must give fair play in joints to Government and public sector undertakings in matters of contract – Courts must also not interfere where such interference would cause unnecessary ....
The interpretation of eligibility criteria in public tenders is best determined by the tendering authority, and judicial review is limited to preventing arbitrariness or mala fides.
Judicial interference in the matter of tenders and contracts is limited and the court should exercise restraint in interfering with the administrative decision-making process.
Point of law: Supreme Court held that any contract of public service should not be interfered with lightly and in any case, there should not be any interim order derailing entire process of services ....
The court emphasized the need for judicial restraint in interfering with tender processes, especially in matters involving technical issues, and highlighted the limitations of the court's expertise i....
Judicial review of tender processes is limited; courts should respect the authority's discretion unless there is clear evidence of arbitrariness or irrationality.
Login now and unlock free premium legal research
Login to SupremeToday AI and access free legal analysis, AI highlights, and smart tools.
Login
now!
India’s Legal research and Law Firm App, Download now!
Copyright © 2023 Vikas Info Solution Pvt Ltd. All Rights Reserved.