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IN THE HIGH COURT OF MADHYA PRADESH
S. C. Sharma and Shailendra Shukla, JJ.
Indermani Mineral (India) Private Limited v.
State of M. P. & Others
Writ Petition No. 25000 of 2019 (Indore);
Decided on 6.2.2020
(1) Tender -- bidders previously engaged with company called, deliberations made and then terms and conditions of contract decided -- this process of calling bidders to frame terms and conditions is unheard of -- respondents should have issued public notice inviting all interested parties to give suggestions. [Para 50
(2) Tender -- one tender for two plants -- can always be issued -- decision of State Government not arbitrary, discriminatory or actuated by malice -- cannot be subjected to judicial review. [Para 52
(3) Tender -- tenure of contract -- depends upon nature of work - fixing time period in contract can never be an arbitrary condition. [Para 58
(4) Tender -- condition -- exclusion of parties who have worked with private companies -- bidder having experience in respect of supply of coal for any State owned Power Generating Company/NTPC/Captive Power Utilities of any public sector undertaking in India -- is eligible to participate -- condition not illegal and arbitrary. [Para 59
(5) Tender -- petitioner not able to establish that NIT has been floated with mala fide intention and to cause heavy loss to State Exchequer -- merely because conditions are not favourable to petitioner, they cannot be termed as arbitrary conditions. [Para 60
(6) Constitution of India -- Art. 226 -- scope of judicial review -- notice inviting tender -- Governments and their undertakings have free hand in setting terms of tender -- unless terms and conditions are arbitrary, discriminatory, mala fide or actuated by bias, question of interference by Courts does not arise -- petitioner failed to establish that criteria adopted by respondents is contrary to public interest, discriminatory or unreasonable -- question of interference does not arise. (2012)8 SCC 216, (2016)16 SCC 818, (2017)4 SCC 269, (1994) 6 SCC 651, (2002)5 SCC 287, (2003)3 SCC 186, (2005)1 SCC 679, (1993)3 SCC 499, (2014)3 SCC 760, (2018)5 SCC 462, (2004)4 SCC 19, (2000)2 SCC 617, (2005)6 SCC 138, (2017) 4 SCC 243, AIR 1974 SC 366, (1967)1 SCR 1012, (1997)9 SCC 495 and (2005)4 SCC 435 relied on. (2000)2 GLR 1814, (2016) 16 SCC 818, (1975)1 7SCC 70, 1991 AIR 1579, (2009)6 SCC 178, (2009)6 SCC 171, (1990)2 SCC 488, (2018)8 SCC 243, (2007) 11 SCC 32 and (2007) 8 SCC 1 referred to. [Paras 81 & 82
¼1½ fufonk & ftUgksaus iwoZ esa daiuh ds lkFk dk;Z fd;k Fkk] mu cksyh yxkus okyksa dks cqyk;k x;k] fopkj&foe'kZ fd;k x;k vkSj fQj lafonk ds fuca/ku rFkk 'krs± fofuf'pr dh xbZ & fuca/ku rFkk 'krs± fojfpr djus ds fy, cksyh yxkus okyksa dks cqykus dh ;g izfØ;k vHkwriwoZ gS & izR;FkhZx.k dks leLr fgrc) i{kksa dks lq>ko nsus ds fy, vkeaf=r djrs gq, vke lwpuk tkjh djuk pkfg, FkhA ¼iSjk 50
¼2½ fufonk && nks la;a=ksa ds fy, ,d fufonk && tkjh dh gh tk ldrh gS && jkT; ljdkj dk fofu'p; euekuk] foHksndkjh vFkok nqHkkZo ls izsfjr ugha && U;kf;d iqufoZyksdu ugha fd;k tk ldrkA ¼iSjk 52
¼3½ fufonk && lafonk dh vof/k && dk;Z dh izÑfr ij fuHkZj gksrh gS && lafonk esa le;kof/k fu;r fd;k tkuk dHkh euekuh 'krZ ugha gks ldrkA ¼iSjk 58
¼4½ fufonk && 'krZ && mu i{kksa dk viotZu ftUgksaus futh daifu;ksa ds lkFk dk;Z fd;k gS && ,slk cksyh yxkus okyk ftls Hkkjr esa jkT; ds LokfeRo dh fdlh Hkh fctyh mRiknu daiuh@,u Vh ih lh@ fdlh ifCyd lSDVj miØe dh dSfIVo ikoj ;wfVfyVh ds fy, dks;ys ds iznk; ds laca/k esa vuqHko gS && Hkkx ysus ds fy, ik= gS && 'krZ voS/k rFkk euekuh ughaA [iSjk 59
¼5½ fufonk && ;kph fl) ugha dj ldk fd fufonk vkea=.k lwpuk vln~Hkkoiw.kZ vk'k; ls rFkk jktdks"k dks Hkkjh uqDlku dkfjr djus ds fy, tkjh dh xbZ gS && ek= blfy, fd 'krs± ;kph ds vuqdwy ugha gSa] mUgsa euekuh 'kr±s ugha dgk tk ldrkA ¼iSjk 60
¼6½ Hkkjr dk lafo/kku && vuq- 226 && U;kf;d iqufoZyksdu dh O;kfIr && fufonk vkea=.k lwpuk && ljdkjksa rFkk muds miØeksa dks fufonk ds fucaèku r; djus dh iw.kZ Lora=rk gS && tc rd fuca/ku rFkk 'krs± euekuh] foHksndkjh] vln~Hkkfod vFkok fo}s"k ls izsfjr ugha gksa] U;k;ky;ksa }kjk gLr{ksi dk iz'u mn~Hkwr ugha gksrk && ;kph fl) djus esa vlQy jgk fd izR;FkhZx.k }kjk viuk;k x;k ekunaM yksd fgr ds izfrdwy] foHksndkjh vFkok v;qfä;qä gS && gLr{ksi dk iz'u mn~Hkwr ugha gksrkA ¼2012½8 ,l lh lh 216] ¼2016½16 ,l lh lh 818] ¼2017½4 ,l lh lh 269] ¼1994½6 ,l lh 651] ¼2002½ 5 ,l lh lh 287] ¼2003½3 , lh lh 186] ¼2005½1 ,l lh lh 679] ¼1993½3 ,l lh lh 499] ¼2014½3 ,l lh lh 760] ¼2018½5 ,l lh lh 462] ¼2004½4 ,l lh lh 19] ¼2000½2 ,l lh lh 617] ¼2005½6 ,l lh lh 138] ¼2017½4 ,l lh lh 243] , vkb vkj 1974 ,l lh 366] ¼1967½1 ,l lh vkj 1012] ¼1997½9 ,l lh lh 495 rFkk ¼2005½4 ,l lh lh 435 voyafcrA ¼2000½2 th ,y vkj 1814] ¼2016½16 ,l lh lh 818] ¼1975½1 ,l lh lh 70] 1991 , vkb vkj 1579 ¼2009½6 ,l lh lh 178] ¼2009½6 ,l lh lh 171] ¼1990½2 ,l lh lh 488] ¼2018½8 ,l lh lh 243] ¼2007½11 ,l lh lh 32 rFkk ¼2007½8 ,l lh lh 1 fufnZ"VA ¼iSjk 81 ,oa 82
ORDER
Sharma, J- -- 1. The petitioner before this Court, a Company registered under the Companies Act, 1956 having Coal Washeries in different districts of Chhatisgarh, has filed this present petition being aggrieved by the Notice Inviting Tender (NIT) issued by the Madhya Pradesh Power Generating Company Limited inviting bids for ROM Coal Beneficiation and Managing Associated Logistics for SSTPP, Khandwa and STPS, Sarni for the year 2019 – 20.
2. It has been stated that earlier two different tenders, in respect of supply of coal to the Power Generating Plant i.e. STPS, Sarni and SSTPP, Khandwa for the year 2018 – 19, were floated independently, and now, one common tender has been issued for both the Power Generating Plants for the purposes of coal lifting, beneficiation (through wet process), liaisoning and movement of coal.
3. The petitioner / Company is aggrieved with certain terms and conditions of the tender issued by respondent No. 2. During the pendency of the writ petition various amendments have also been made in the tender (NIT). The petitioner / Company has challenged the NIT on various grounds and the main clauses, which are under challenge, are as under :
(a) As per Clause – II of the Technical Qualification of the NIT 2019 – 20, the requisite washing technology required for the coal beneficiation plant should not be less than 35 Lakh Metric Tonne per annum.
(b) As per Clause – II of the said NIT, a bidder should possess experience in coal lifting, beneficiation (through wet process), liaisoning with coal companies and railways for any State owned Power Generating Companies / NTPC / Captive Power Utility of any PSU in India for a total quantity of not less than 2.8 Million Tonne in span of 12 month from SECL command in last five years.
(c) As per Clause – III (i) of the said NIT, a bidder should possess turnover (average annual turnover of preceding three financial years) of Rs.175 crores to showcase his strong financial ability.
(d) As per Clause – II (I) of the said NIT, a bidder should possess a spare capacity of the washery not less than 3.5 Metric Tonne per annum.
4. The petitioner / Company has stated in the writ petition that for the preceding years i.e. for the year 2018 –19, a separate NIT was issued in respect of Khandwa Power Plant and the requirements were that the washing technology, required for the coal beneficiation plant, should not be less than 14 Lakh Metric Tonne per annum. It further provided that the bidder should possess prior experience of coal lifting, beneficiation (through wet process), liaisoning and movement of coal by road and railways for one or more State Power Generating Companies / NTPC / Independent Power Producers (IPPs) / Steel / Cement / Aluminium Utilities / PSU’s in India (as the case may be) for a total quantity of not less than 1.40 Million Tonne per annum in 12 months’ period in single stretch from SECL commant area in the last seven years. The Other conditions in respect of SSTPP, Khandwa NIT for the year 2018 – 19 provided that a bidder should possess turn over (average annual turn over of preceding three financial years) of Rs.39.50 crores. One of the prerequisites was also that a bidder should further possess a spare capacity of the washery of not less than 1.40 Metric Tonne per annum.
5. The petitioner / Company has provided comparison between the NIT, which is subject matter of the dispute and NIT of the year 2018 – 19 in respect of SSTPP, Khandwa in form of a chart and the same reads as under :-
| Sl. No. | Technical Requirement | Clause as amended on 31.3.2018 | Tender dated 4.11.2019 |
| 1 | Minimum Bid Quality | 14.00 Lakh Metric Tonne | 35 Lakh per year (both plants) |
| 2 | Spare Capacity of washery | 1.40 Metric Tonne per annum | Clause No.II (i) – 3.5 Metric Tonne per anum |
| 3 | Past Experience | The Intending Bidder should have executed t | |
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