IN THE HIGH COURT OF MADHYA PRADESH
Ravi Malimath, CJ, and Vishal Mishra, J.
Vikas Road Carriers, A Partnership Firm v. Central Warehousing Corporation & Another
Writ Petition No. 22427 of 2023 (Jabalpur); Decided on 20.3.2024
(1) Tender -- as per Cl. 11 of GeM Incident Management Policy, seller suspended at time of financial bid opening date/time will be marked as "disqualified" due to suspension -- L-1 bidder petitioner's account placed under suspension during bid opening date -- authorities rightly arrived at conclusion that they should go for fresh tender -- mere declaration of price by petitioner will not be of help to him for reason that he himself was at fault for not maintaining active account on GeM portal at time of consideration of bid -- interference declined. [Paras 13 & 18]
(2) Constitution of India -- Art. 226/227 -- scope of judicial review -- tender -- interference in tender matters is limited to certain extent. 2023 SCC Online SC 671 and (2020) 16 SCC 489 followed. [Para 14]
(3) Tender -- no right created in favour of bidder merely by participating in tender -- tendering authority cannot be precluded from its option to cancel tendering process on any ground -- tendering process can be cancelled at any stage before finalization -- tender is only an invitation to offer -- other party makes offer pursuant to invitation to offer -- not obligatory for authority to accept offer -- no right created on basis of merely being L-1 -- respondent well within its right to cancel tender before acceptance was made -- right would accrue when contract comes into existence. [Para 16]
(4) Contract -- tender -- always in domain of NIT issuing authority to take decision -- rejection of bid is purely administrative decision -- rights are reserved whether to accept/cancel tender without assigning any reason -- decision of Corporation shall be final and binding on tenderer. [Para 17]
¼1½ fufonk & tse ?kVuk çca/ku uhfr ds [kaM 11 ds vuqlkj] foÙkh; cksyh [kqyus ds fnukad@le; dks fuyafcr foØsrk dks fujgZrk ds dkj.k ^^fujgZ** fpfUgr fd;k tk,xk & cksyh [kqyus ds fnukad dks ,y&1 cksyh yxkus okys ;kph dk [kkrk fujgZrk ds v/khu & çkf/kdkjhx.k lgh fu"d"kZ ij igq¡ps fd mUgsa ubZ fufonk tkjh djuk pkfg, & ;kph }kjk dher dh ?kks"k.kk ek= mlds fy, bl dkj.k lgk;d ugha fd cksyh ij fopkj fd, tkus ds le; tse iksVZy ij lfØ; [kkrk ugha j[kus ds fy, og Lo;a nks"kh Fkk & gLr{ksi ls bUdkjA ¼iSjk 13 ,oa 18½
¼2½ Hkkjr dk lafo/kku & vuqPNsn 226@227 & U;kf;d iqufoZyksdu dh O;kfIr & fufonk & fufonk ds ekeyksa esa gLr{ksi fuf'pr foLrkj rd lhfer gSA 2023 ,llhlh v‚uykbu ,llh 671 rFkk ¼2020½ 16 ,llhlh 489 vuqlfjrA ¼iSjk 14½
¼3½ fufonk & fufonk esa Hkkx ysus ek= ls cksyh yxkus okys ds i{k esa dksbZ vf/kdkj l`ftr ugha gksrk & fufonk tkjh djus okys çkf/kdkjh dks fufonk dh çfØ;k dks fdlh Hkh vk/kkj ij jn~n djus ds mlds fodYi ls çokfjr ugha fd;k tk ldrk & vafre gksus ds iwoZ fdlh Hkh çØe ij fufonk dh çfØ;k jn~n dh tk ldrh gS & fufonk çLrko dk vkea=.k ek= gS & vU; i{k çLrko ds vkea=.k ds vuqlj.k esa çLrko djrk gS & çLrko Lohdkj djuk çkf/kdkjh ds fy, ck/;dj ugha & ek= ,y&1 gksus ds vk/kkj ij dksbZ vf/kdkj l`ftr ugha gksrk & Loh—fr ds iwoZ fufonk jn~n djus dk çR;FkhZ dks iw.kZ vf/kdkj Fkk & vf/kdkj rc çksn~Hkwr gksxk tc lafonk vfLrRo esa vk,xhA ¼iSjk 16½
¼4½ lafonk & fufonk & fofu'p;u lnk gh fufonk vkea=.k lwpuk tkjh djus okys çkf/kdkjh ds vf/kdkj {ks= esa & cksyh dh ukeatwjh fo'kq)r% ç'kklfud fofu'p; gS & dksbZ Hkh dkj.k fn, fcuk fufonk Lohdkj@jn~n fd, tkus ds ckjs esa vfèkdkj vkjf{kr gksrs gSa & fuxe dk fofu'p; vafre rFkk fufonkdrkZ ij vkc)dj gksxkA ¼iSjk 17½
ORDER
Mishra, J-- 1. This petition has been filed by the petitioner assailing the arbitrary action on the part of the respondent No.1 whereby the tender/bid of the petitioner has been cancelled for the reason which is not attributed to the tender documents.
2. It is the case of the petitioner that the petitioner is a partnership concern registered under the provisions of the Partnership Act. The respondent No.1 has floated tender for appointment of service provider for handling of Cement, Food grains and allied products i.e. Salt, Fertilizer and other commodities etc. of various depositors/udders at its Railside Warehouse Complex (RWC) Nishatpura Bhopal. The entire bid process was to be held on the respondent No.2 i.e GeM portal i.e. “Government e Marketplace” portal and the tender document was to be purchased from the said portal and other documents were to be uploaded on the said portal only. Clause 13 of the tender document provides that GeM portal is used only as a platform for procurement/tendering for appointment of service provider for Handling Rail/Road Borne Cargo at Rail side warehouse complex. All the terms and conditions contained in this NIT shall be applicable in whole tender process. The petitioner submitted the bid documents. In all five bids were received, out of which four bids could not qualify in the technical evaluation and after opening of the financial bid, the petitioner was declared as the lowest bidder (L1). He was waiting for the issuance of an LOI but to his utter surprise, the petitioner was shocked to see that his bid has been cancelled by the respondent.
3. It is argued that declaration of petitioner as L1 bidder by the tender inviting authority amounts to a concluded contract so far as respondent No.1 is concerned. So there cannot be any cancellation of the accepted bid of the petitioner. The petitioner’s tender has been cancelled for the reason that profile of the petitioner was suspended by the GeM portal owing to some dues which the petitioner has to pay to the GeM portal. The same are alien to the tender document. It is submitted that the bid of the petitioner has not been cancelled for any reason which are attributable to the tender inviting authority nor for any non-compliance or non-adherence to any of the terms and conditions of the tender inviting authority or the bid document. The GeM portal is used only as a platform for holding the bid in the form of service provider. Rejection of bid of the petitioner on the ground that the petitioner’s account has been suspended by the GeM portal is per se illegal and arbitrary. Therefore, the present petition has been filed for setting aside the decision taken by the respondent No.1.
4. It is argued at length drawing attention of this Court to Clause 13 of the tender document wherein it is clearly mentioned that the GeM portal is used only as a platform for procurement/tendering for appointment of service provider for handling rail/road borne cargo at rail side warehouse complex. There is no other terms and conditions of the bid document that has been violated by the petitioner. The bid documents submitted by the petitioner have already been evaluated at the time of opening of the financial bid. The petitioner amongst the five participant was found to be successful bidder and was declared as L1. Therefore, just to accommodate or to extend the benefit to some other candidate, the entire bid has been cancelled.
5. It is pointed out that during the pendency of this petition, new NIT has been floated by the respondent No.1 which was put to challenge by the petitioner by filing an application being I.A. No.17437 of 2023 seeking for quashment of fresh NIT dated 23.8.2023. This Court vide order dated 27.10.2023 has stayed all further proceedings pursuant to the new bid vide Annexure P/6.
6. The counsel for the petitioner has pointed out that the deficiency which has been pointed out by the authorities has been rectified by him immediately and the defects
Judicial review in tender matters is narrowly circumscribed. A court should only interfere if the procuring authority's action is arbitrary, irrational, or malafide. Mandatory tender conditions must ....
The authority may cancel a tender without reason if lack of competition is evident; bidders have no enforceable rights without formal acceptance of their bids.
The tender inviting authority has the right to accept or reject any bid and to annul the bidding process at any time prior to the award of contract without assigning any reason.
The authority's interpretation of tender conditions is paramount, and non-compliance with explicit requirements justifies cancellation of bids.
The tendering authority can cancel a tender for a single bidder if it serves public interest by ensuring greater competition.
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