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2015 Supreme(MP) 113
MADHYA PRADESH HIGH COURT
P. K. JAISWAL and T. K. KAUSHAL, JJ.
Pragmatic Infrastructures Ltd. – Appellant
vs
M. P. Housing and Infrastructure Development Board and another – Respondents
Writ Petition No. 495 of 2015
Decided On 11/03/2015
The decision to reject a tender is based on the fulfillment of eligibility conditions, and judicial review is limited to arbitrariness, discrimination, or bias.
Headnote:
TENDER - Challenge to Rejection of Tender - Constitution of India - Article 226 - General Conditions, Section I, Clause 1.17 - Qualification Criteria - Financial Turnover - Completion of Civil Engineering Work - Assessment of Bid Capacity
Fact of the Case:
The petitioner challenged the rejection of its tender for a construction project, claiming it fulfilled all the qualification criteria and was the lowest tenderer. The respondents rejected the tender, citing non-fulfillment of eligibility conditions.
Finding of the Court:
The court found that the petitioner did not fulfill the eligibility conditions, specifically the completion of a single civil engineering work of a certain value within a specified time period. The court upheld the rejection of the petitioner's tender.
Issues: Challenge to rejection of tender, fulfillment of qualification criteria, reason for rejection, arbitrary and discriminatory action, violation of Article 14 of the Constitution of India.
Ratio Decidendi: The decision to reject the tender was based on the petitioner's failure to meet the eligibility conditions, which were incorporated to ensure experienced and financially capable tenderers participate. The court emphasized that judicial review is limited to arbitrariness, discrimination, or bias, and not to substitute administrative decisions.
Final Decision: The court dismissed the writ petition, upholding the rejection of the petitioner's tender and directing the respondents to issue a fresh advertisement for the tender.
P. K. Jaiswal, J. :
” By this writ petition, under Article 226 of Constitution of India, the petitioner has essentially challenged Annexure-P/29, the detailed notice inviting tender(II Call) System Tender No.260 and also praying for issuance of writ of certiorari for quashment of a decision of the respondents regarding rejection of the tender submitted by the petitioner on the ground that he fulfills all the requirement and has all the qualification criteria prescribed in the tender documents and notice inviting tender (Annexure-P/ 4) and it being the lowest tenderer is entitled for award of the contract in his favour.
2. Brief facts of the case are that the respondent No.2 issued a notice Inviting Tender No.194(1st call) for the work of construction of Office Administrative Building 1/c, Water Supply Internal, External Electrification, Development of Campus of IT Park at village Sinhasa, Dhar Road, Indore. The probable amount of contract was put in notice as Rs.2033 Lacs and an earnest money of Rs.5,00,000/- was required to be deposited with on line tender in the following manner:
2. The bidders shall have to submit their Bids online(decrypt the bids and re-encrypt the bids) and upload the Post qualification information in prescribed pro forma for assessment of eligibility in online Envelope ' B” with price bids in Form ' A” in a separate online Envelope ' C” Original Earnest Money Deposit Instrument drawn in favour of Executive Engineer Project Division MPHIDB, Indore payable at Indore should reach the office of the Executive Engineer MP Housing & Infrastructure Development Board Project Division, Indore up to 06.11.2014 on 3.30 p.m.
3. The Earnest Money Deposit Envelope (Envelope ''A”) and Envelope ”B” shall be opened online between 07.11.2014, 10.30 to 07.11.2014, 17.30 in the presence of any intending contractors or their representatives, if they choose to be present. After assessment of eligibility of the tenderers by the competent authority on the basis of Post Qualification documents submitted by the Contractors in Envelope” B” , Envelope” C” (Price Bid in Envelope” C” ) of only Post-Qualified Contractors shall be opened online between 17.11.2014, 10.30 to 17.11.2014, 17.30. The Start Date & Time and the End Date & Time of opening of Price Bid envelope mentioned in the Tender Schedule is tentative and subject to change.
3. As per the Detailed Notice Inviting Tender, General conditions, Section I, Clause 1.17, qualification criteria for submission of tender is as follows:
1.17 QUALIFICATION CRITERIA
1.17.1 (A) To qualify for award of the contract, each bidder in its name should have in the last five years.
(i) Achieved a minimum financial turn over (in all classes of Civil Engineering construction works only) amount in the last five years immediately preceding the year of application not less than two and a half times of the amount of the contract.
(ii) Satisfactorily completed as a prime contractor at least one single Civil Engineering work of value not less than 2/3rd the value of the contract in 2/3rd time for proposed work.
1.17.1 (B) Bidders who meet the minimum qualification criteria will be qualified only if their available bid capacity is more than the total, probable amount of contractor. The available bid capacity will be calculated as under :
Assessed available bid capacity + (A x N x 2.00 ' B)
Where, A = Maximum value of civil engineering works executed in any one year during the last five years (updated to price level of the year in which contract is to be awarded) works completed as well works in progress will be accounted.
N = No. of years prescribed for this contract.
B = Value (updated) of existing commitments and ongoing works to be completed up to end of the current financial years. Statement duly signed or counter signed by the Engineer-in-Charge Should be submitted in support of the above.
1.17.2 Even though the applicants meet the above qualifying criteria, they are subject to the disqualification if
