IN THE HIGH COURT OF UTTARAKHAND AT NAINITAL
Vipin Sanghi, Rakesh Thapliyal, JJ.
Mukesh Tomar - Petitioner
Versus
State of Uttarakhand & others - Respondents
Writ Petition (M/B) No. 196 OF 2023
Decided On : 21-08-2023
Tender Disqualification - Construction of Boundary Wall - FIN-4, Tender Id: 2023_pwd_60333_1 - The court found that the petitioner was unfairly disqualified due to hyper-technical reasons, while the winning bidder, respondent No. 4, was technically unqualified. The court quashed the award of the tender to respondent No. 4 and allowed the writ petition with costs of Rs.50,000/- to be paid by the respondent authorities to the petitioner.
Fact of the Case:
The petitioner challenged its disqualification from a tender for the construction of a boundary wall at Science City, alleging that the winning bidder, respondent No. 4, was technically unqualified. The respondents shifted their reasons for disqualification, including a requirement for litigation history and negative current assets.
Finding of the Court:
The court found that the petitioner was unfairly disqualified due to hyper-technical reasons, while the winning bidder, respondent No. 4, was technically unqualified. The court quashed the award of the tender to respondent No. 4 and allowed the writ petition with costs of Rs.50,000/- to be paid by the respondent authorities to the petitioner.
Issues: Unfair disqualification of the petitioner, technical qualification of respondent No. 4, shifting reasons for disqualification by the respondents.
Ratio Decidendi: The court held that the respondents acted unfairly and in a discriminatory manner, favoring respondent No. 4 despite its technical disqualification. The State is obliged to act transparently and fairly in awarding public contracts.
Final Decision: The court quashed the award of the tender to respondent No. 4 and allowed the writ petition with costs of Rs.50,000/- to be paid by the respondent authorities to the petitioner.
JUDGMENT :
Vipin Sanghi, J.
Service on respondent No. 4 is complete. However, none has appeared on behalf of respondent No. 4 to defend these proceedings. Counter-affidavit has been filed on behalf of respondent Nos. 2 and 3. We have, therefore, proceeded to hear this petition, and we proceed to dispose of the same.
2. The petitioner has preferred this petition to assail its technical disqualification by the respondent authorities in respect of the tender submitted by the petitioner for the work, namely, construction of boundary wall of Science City at Jhajhra, Dehradun, for which the respondent authorities invited bids vide the NIT dated 22.06.2023. The petitioner is also aggrieved by the award of the work to respondent No. 4, on the ground that the said respondent–contractor was actually technically disqualified, and was wrongly held to be technically qualified by the respondents.
3. The reason for petitioner’s disqualification communicated by the respondents are found in two communications. The first communication / Office Order dated 21.07.2023 was issued by the respondent in respect of all the bidders, wherein respondent No. 4 was declared to be qualified, and the other bidders, including the petitioner, were declared to be disqualified. So far as the petitioner is concerned, reason for disqualification stated in the communication dated 21.07.2023 was the following :
^^Jh eqds’k rksej] fuoklh yka?kk] lgliqj] nsgjknwu (FIN-4 ,ao going work dh lwpuk u fn;s tkus ls dkj.k½**
4. The petitioner responded to the communication on 21.07.2023 itself. Thereafter, the respondent issued another communication dated 22.07.2023, communicating further grounds for the petitioner’s disqualification. This communication reads as follows :
^^lsok esa
Jh eqds’k rksej
fuoklh yka?kk lgliqj
nsgjknwuA
fo”k; %& lkbal flVh >k>jk] nsgjknwu dh pkgjnhokjh dk fuek.kZ dk;Z (Tender Id: 2023_pwd_60333_1) dh fufonk ds lEcU/k esaA
lanHkZ %& vkidk i=kad & ‘kwU;] fnukad 21-07-2023
mijksDr fo"k;d vius lanfHkZr i= dk voyksdu djsa ftlds }kjk vkifRr ntZ djrs gq,s iqu% rduhdh foM dk eqY;kadu djrs gq,s Lo;a dks lQy ?kksf"kr djus gsrq fuosnu fd;k x;k gSA ftlds Øe esa voxr djkuk gS fd fo"k;d dk;Z dh rduhdh foM fnukad 12-07-2023 dks fufonk lfefr ds lEeq[k v/kksgLrk{kjh ds dk;kZy; es [kksyh x;h FkhA ftlesa vkidh foM dk rduhdh ewY;kadu djus ds mijkUr FIN-4 ,ao Ongoing work dh lwpuk u fn;s tkus ds dkj.k vkidks izkbl foM [kksyus gsrq ik= ugha ik;k x;k FkkA vkids }kjk fd;s x;s vuqjks/k ij iqu vkidh fCkM dk rduhdh ewY;kadu djus ij ik;k x;k fd vkids }kjk Litigation history 100 #i;s ds Notorized Stamp Paper ij izLrqr ugha fd;k x;k gS ,ao FIN-1 esa Current Asset Rs.27.23 Lakh – Current liabilities Rs.27.45 = -0.22 Lakh _.kkRed vkrh gSA
vr% iqu% vkidh fCkM dk rduhdh ewY;kadu ds mijkUr Hkh vkidks izkbZl fCkM [kksyus gsrq ik= ugha ik;k x;kA**
5. From the above, it would be seen that the petitioner’s initial disqualification was on the ground that the petitioner had not provided information in Form FIN-4 regarding ongoing works. The said Form reads as under :
Bidder (or each JV partner) should provide information indicated below in order to calculate the aggregated financial resources requirement, which requirement equals the sum of : (i) the Bidder’s (oreach JV partner’s) current commitments on all contracts that have been awarded, or for which a letter of intent or acceptance has been received, or for contracts approaching completion, but for which an unqualified, full completion certificate has syet to be issued and (ii) financial resources requirement for subject contract as determined by the Employer. Bidder must also disclose any other financial obligations that could materially affect the implementation of subject contract if such contract were to be awarded to the Bidder.
| Financial Resources Requiremen | ||||||
AI
The State is obliged to act transparently and fairly in awarding public contracts, and cannot favor or discriminate against any party.
Bidders must comply strictly with tender requirements; misleading information and poor performance can result in disqualification. Judicial review in tender cases should maintain restraint, supportin....
Compliance with tender conditions, including financial capacity, submission of necessary documents, and establishment of required past experience, is crucial for the acceptance of bids.
Judicial restraint is paramount in administrative contract disputes, with equal opportunity granted to bidders for document rectification to avoid discrimination.
A bid submitted by a joint-venture must be maintained by the entity as a whole; failure to comply with tender requirements results in disqualification.
Judicial review in tender matters is limited to assessing procedural fairness, not the merits of the tender conditions, which are determined by the tendering authority.
The court upheld the tendering authority's discretion in setting eligibility criteria, emphasizing limited judicial review focused on procedural fairness rather than the merits of the decision.
The court upheld the rejection of the petitioner's technical bid due to failure to meet registration requirements, emphasizing limited grounds for judicial review.
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