IN THE HIGH COURT OF UTTARAKHAND AT NAINITAL
VIPIN SANGHI, RAKESH THAPLIYAL, JJ.
M/s Omega Elevators – Petitioner
Versus
Indian Institute of Technology, Roorkee – Respondent
Writ Petition (M/s) No. 814 of 2023
Decided On : 06-07-2023
TENDER - BID EVALUATION - Public Procurement (Preference to Make in India) Order 2017, CPWD Enlistment Rules-Lifts-A/03 - The court found the action of the respondent in limiting the tender to only a few named makes/brands of lift to be completely arbitrary, discriminatory, and in violation of government orders. The court quashed the tender process and directed the respondent to re-initiate the tender process without brand-specific specifications.
Fact of the Case:
The petitioner challenged the rejection of their technical bid for a lift tender, citing arbitrary limitation of approved makes/brands and non-compliance with 'Make in India' Policy. The respondent restricted the tender to specific brands/makes of lifts, leading to the disqualification of the petitioner's bid.
Finding of the Court:
The court found the respondent's action in limiting the tender to specific makes/brands of lift to be arbitrary, discriminatory, and in violation of government orders. The court quashed the tender process and directed the respondent to re-initiate the tender process without brand-specific specifications.
Issues: Arbitrary limitation of approved makes/brands, compliance with 'Make in India' Policy, and rejection of petitioner's technical bid.
Ratio Decidendi: The respondent's restriction of the tender to specific makes/brands of lift was found to be in violation of the Public Procurement (Preference to Make in India) Order 2017 and CPWD Enlistment Rules-Lifts-A/03, leading to the quashing of the tender process.
Final Decision: The court quashed the tender process and directed the respondent to re-initiate the tender process without brand-specific specifications. The petitioner's earnest money deposit was to be refunded by the respondent within two weeks.
JUDGMENT :
VIPIN SANGHI, J.
1. We have heard learned counsels and proceed to dispose of this writ petition.
2. The petitioner has preferred the present writ petition to assail the technical bid evaluation dated 19.01.2023, whereby the technical bid of the petitioner has been rejected by the respondent in relation to its tender initiated for replacement of old lifts at Hill View Apartment & Radha Krishna Bhawan and installation of new lift at Rajendra Bhawan Mess with CAMC at IIT Roorkee. The petitioner also seeks a direction to restrain the respondent from awarding the contract to a third party.
3. The case of the petitioner is that the petitioner is a well-established manufacturer and supplier of lifts. The respondent-IIT Roorkee invited the aforesaid tender for lifts. While doing so, the respondent stipulated the specific brands/makes of lifts which were accepted under the tender. The list of approved makes in relation to the lift was ‘OTIS/KONE/ Mitsubishi/Schindler/ECE’. The list of approved makes also contained a note which states that ‘items whose make are not mentioned in the approved make list will be as per direction of EIC (Engineer In-charge)’.
4. The case of the petitioner is that since the petitioner was interested in participating in the tender in question, the petitioner vide representation dated 21.01.2023, made to the respondent, lodged their protest against limiting the participation in the tender by only the aforesaid few brands/makes of lift. The petitioner also referred to the judgment of the High Court of Delhi, in the petitioner’s own case, wherein a similar limitation of makes/brands of lift by the tender inviting authority was quashed and set-aside by the High Court of Delhi, in Writ Petition Nos. 11478 and 11481 of 2019. A copy of the judgment was also enclosed by the petitioner along with the representation.
5. The petitioner stated that it has an indigenous manufacturing facility, and business and its products are required to be encouraged under the “Make in India” Policy of the Government. The positive case of the petitioner in the writ petition is that after the publication of the tender, the petitioner approached the respondent, who informed the petitioner that the list of makes was only indicative. Consequently, after making its representation on 21.01.2023, the petitioner participated in the tendering process by submitting its bid on 06.02.2023. The respondent opened the technical bids on 19.01.2023 and disqualified the petitioner on the ground that though the Authorization certificate from the Original Equipment Manufacturer (OEM) had been attached, it was not issued by one of the approved brands/makes. Thus, the same was ‘not as per NIT’, and that the petitioner did not fulfill the condition 7(a), i.e. Production of authorization certificate from the OEM. It is in this background that the petitioner has preferred the present writ petition.
6. Upon issuance of notice, the respondent has filed its counter-affidavit. The stand taken by the respondent in its counter-affidavit is that the respondent already has lifts of the approved makes/brands operating in its different premises, and the respondent is quiet satisfied with the functioning of those lifts. It is for this reason that the respondent has restricted the offers by only brands/makes with which the respondent is acquainted, and satisfied.
7. Learned counsel for the petitioner submits that the petitioner was informed by the officers of the respondent that the list of makes/brands of the lift was indicative. This submission is denied by the respondent. At the same time, the respondent has not denied the fact that the petitioner made its representation, aforesaid, on 21.01.2023, which remained unanswered till the last date of submission of bids.
8. Learned counsel for the petitioner has taken us through the judgment of the High Court of Delhi in W.P. (C) No. 2060 of 2021 and W.P. (C) No. 4043 of 2021, decided on 04.06.2021. The Division Bench of the
Arbitrary limitation of approved makes/brands in a tender process can be deemed discriminatory and in violation of government orders, leading to the quashing of the tender process.
Tender restrictions favoring specific brands violate Articles 14 and 19 of the Constitution, resulting in discriminatory practices and lack of fair competition.
Adherence to the 'Make In India' policy and the impact of violating it on the tender process.
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