The valuation of immovable property and net worth certificate compliance with tender document requirements are crucial for eligibility in mineral block bidding.

ORDER :

Hemant Gupta, CJ.

The challenge in the present writ petition is to the notice dated 10.05.2018 (Annexure P-7) whereby a list of technically qualified bidders in respect of Mineral Block – Hinauti-1 (Compartment 767) (Limestone) and Mineral Block – Hinauti-2 (Compartment 766) (Limestone) was published. Since the name of the petitioner does not find mention in the list, thus the bid of the petitioner stands rejected on the ground that it is not technically qualified.

2. Learned counsel for the respondents has produced the minutes of the sixth meeting of Technical Evaluation and Tender Approval Committee held on 7th May, 2018 wherein bid of the petitioner has been rejected in respect of two notice inviting tenders by assigning the reasons. The relevant extract of the said minutes dated 7th May, 2018 is reproduced as under:-

“5. The list of Bidders declared as Not Technically Qualified Bidders (and the reason thereof) by TETAC is as below. The same is also placed at Annexure 2.

S. No.	Bidder	Mineral Block	Reason for non-selection as TQB
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3.	Goel Roadways	Hinauti-1	In the net worth certificate submitted by the Bidder the computation of the Net worth is not as per the prescribed computation methodology detailed in “Clause 5(b)(c) Explanation 4” of the Tender document.
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5.	Goel Roadways	Hinauti-2	In the net worth certificate submitted by the Bidder the computation of the Net worth is not as per the prescribed computation methodology detailed in “Clause 5(b)(c) Explanation 4” of the Tender document.

mitted by the Bidder the computation of the Net worth is not as per the prescribed computation methodology detailed in “Clause 5(b)(c) Explanation 4” of the Tender document.

3. The petitioner is a sole Proprietorship Firm of Shri Motilal Goel. The relevant conditions of eligibility as per tender document to participate in the online tender process is as under:-

“5. Eligibility

Pursuant to Rule 6 of the Auction Rules, the eligibility for participating in the e-auction shall be as follows:

(a) The Bidder must meet the Conditions specified in Section 5 which is quoted below:

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(b) The Bidder must meet the terms and conditions regarding eligibility as stipulated in Schedule I of the Auction Rules for e-auction of Mineral Block for grant of Mining Lease as quoted below. Accordingly, the net worth of the Bidder must be more than INR 1,17,68,791 (Rupees One Crore Seventeen Lakh Sixty Eight Thousand Seven Hundred Ninety One), calculated in accordance with the following conditions, as applicable;

a. If the Value of Estimated Resources equal or more than one thousand crore rupees, the applicant, including an individual, shall have a net worth more than 2 per cent of Value of Estimated Resources.

b. If the Value of Estimated Resources is less than one thousand crore rupees but more than one hundred crore rupees, the applicant, including an individual, shall have a net worth more than 1 per cent. of Value of Estimated Resources.

c. If the Value of Estimated Resources is less than or equal to one hundred crore rupees, the applicant, including an individual, shall have a net worth of more than 0.5 per cent. of the Value of Estimated Resources.

Explanation:

(1) In case an applicant is a subsidiary of another company incorporated in India, the net worth of such holding company may also be considered:

Provided that, in such case, the applicant shall continue to be a subsidiary of such holding company until such time the applicant meets the aforementioned net worth threshold.

(2) In case of a company, the net worth shall be the sum of paid up share capital and the free reserves as per the audited balance sheet of the financial year ended immediately preceding the date of issuance of notice inviti