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2023 Supreme(UK) 441
IN THE HIGH COURT OF UTTARAKHAND AT NAINITAL
VIPIN SANGHI, RAKESH THAPLIYAL, JJ.
M/s SIDCUL Solutions Network - Petitioner
Versus
State of Uttarakhand and Others - Respondents
Writ Petition (M/B) No. 221 of 2023
Decided On : 05-10-2023
For the Petitioner: Mr. Vinay Kumar.
For the Respondents:Mr. Amarendra Pratap Singh, learned Additional Advocate General, Mr. Suresh Chandra Bhatt, learned counsel.
Conditions in bid documents should be relevant and non-discriminatory, and failure to clarify the meaning of certificates can lead to the quashing of the tender.
Headnote:
Tender - Bid Document - Clause 74(vii), (viii), (xiii), (xviii) - Income Tax Act, Section 62(2)
Fact of the Case:
The petitioner sought to participate in a tender process for cleaning and sanitation services but found certain conditions in the bid document to be irrelevant and discriminatory. The conditions required submission of specific certificates without clarifying their meaning or relevance to the contract work.
Finding of the Court:
The court found that the conditions in the bid document were discriminatory and irrelevant to the nature of the work for which the bid was invited. The respondent's failure to clarify the meaning of the certificates and the contradictory explanations led the court to quash the tender.
Issues: Relevance of conditions in bid document, Discriminatory nature of conditions, Failure to clarify meaning of certificates
Ratio Decidendi: The conditions in the bid document should be relevant to the nature of the work and not discriminatory. Failure to clarify the meaning of certificates and contradictory explanations can lead to the quashing of the tender.
Final Decision: The writ petition was allowed, and the tender was quashed with costs quantified at Rs.25,000 to be recovered from the responsible officers.
JUDGMENT :
Rakesh Thapliyal, J.
By the present writ petition, the petitioner is seeking the following reliefs:-
“(i) Issue a writ, order or direction in the nature of Certiorari calling for the record and quashing the impugned Clause 74(vii), (viii), (xiii) and (xviii) of the Bid Document dated 10.08.2023 (Annexure No. 4 to the writ petition) inasmuch as the said document required to be submitted by the prospective bidder has no relevancy and connection with the contract work and more particularly when the tender document does not mention about tender amount.
(ii) Issue a writ, order or direction in the nature of Mandamus directing the respondents to consider the Tender Document of the petitioner for the work in question without insisting on the documents mentioned at Clause 74(vii), (viii), (xiii) and (xviii) of the Bid Document dated10.08.2023 (Annexure No. 4 to the writ petition).
(iii) Issue any suitable writ, order or direction which this Hon’ble Court may deem fit and proper in the circumstances of the case.”
2. The facts of the case are that the a tender was floated by the Nagar Palika Parishad, Kichha on 14.08.2023, whereby bids were invited from the prospective bidders for the work of cleaning, sanitation and disinfection services, collection, transportation and segregation of garbage. The last date for submission of the bid document was 24.08.2023. The case of the petitioner is that he wanted to participate in the tender process, however, after examining the bid documents, he found that there is Clause 74 in the Bid Document, which requires submission of “SLBR Certificate”. However, there is no description of this Certificate, and further no such Certificate is issued by the State Authorities, and it appears that the said condition was imposed only to facilitate the award of the tender to a particular bidder. The relief, as sought in respect of Clause 74(vii), (viii) (xiii), & (xviii) of the Bid Document is on the ground that the condition, as stipulated in this Clause, has no relevancy in connection with the contract work.
3. It is the submission of the learned counsel for the petitioner that the petitioner is a partnership firm carrying-on business in the name and style of “M/S SIDCUL SOLUTION NETWORK”, and the partnership deed was originally signed on 1st June, 2011, and the partnership was reconstituted from time to time by amending the partnership deed, and the same was lastly amended on 25.03.2020. The petitioner firm is engaged in the business of supply of all types of materials and equipment, including food items and prepared foods, outdoor catering, solid waste management, door-to-door garbage collection and recycling, sanitation and cleaning work, etc. The petitioner firm is also registered with the Government of India as well as with the Labour Department of the State.
4. On 14.08.2023, the Nagar Palika Parishad, Kichha issued a bid document for the work of cleaning, sanitation and disinfection service as well as for collection, transportation and segregation of the garbage. The last date of submission of the bid document was 14.08.2023, and on the same day, the bid was opened at 17:30 Hours. The bid document stipulated the condition that the prospective bidder should have the minimum average turnover of Rs. 2.5 crores for three years.
5. The Nagar Palika Parishad, Kichha further issued letter No. 648 dated 10th August, 2023, wherein necessary guidelines were laid-down, which pertain to the scope of work and other conditions. As per Clause 74, all the information required are compulsory, failing which the technical bid will be treated ineligible and the bid will be rejected.
6. As per Clause (vii), the bidder is required to submit certain documents, which includes the certificate issued by the Chartered Accountant regarding turnover of the bidder of last three financial years and the minimum average turnover should not be less than 2.5 crores.
7. Further as per Clause 74(viii), the prospective bidder should possess t
