IN THE HIGH COURT OF MANIPUR AT IMPHAL
Kh. Nobin Singh, J.
Devendra Construction Company - Appellant
Versus
State Of Manipur & Anr. - Respondents
WP(C) No. 672 of 2021
Decided On : 29-10-2021
TENDER - Rejection of Technical Bid - Section-III A.1, Sl.No.3 - The court discussed the rejection of the technical bid of the petitioner based on the failure to submit the turnover certificate in the format as mentioned in Appendix-4 of the NIT. The court highlighted the provisions of the bidding documents, the requirement for a turnover certificate issued by a Chartered Accountant, and the confidentiality clause. The court emphasized the need for transparency in the tender process and the duty of the State Government to ensure fairness. The judgment dismissed the writ petition, upholding the rejection of the technical bid due to non-compliance with the bidding documents.
Fact of the Case:
The petitioner, a partnership firm, participated in a tender for the Manipur Water Supply Project. The petitioner's technical bid was rejected by the respondents, alleging non-compliance with the turnover certificate format as per the bidding documents. The petitioner filed a writ petition challenging the rejection.
Finding of the Court:
The court found that the petitioner failed to submit the turnover certificate in the required format as per the bidding documents. The court emphasized the need for transparency in the tender process and upheld the rejection of the technical bid due to non-compliance with the bidding documents.
Issues: The key issues were whether the petitioner submitted the requisite documents, particularly the turnover certificate in the format as mentioned in Appendix-4, and whether the rejection of the technical bid without assigning any reason violated Article 14 of the Constitution of India.
Ratio Decidendi: The court held that the petitioner failed to submit the turnover certificate in the required format, as per the bidding documents. The court emphasized the duty of the State Government to ensure fairness and transparency in the tender process. The court also discussed the confidentiality clause and the need for reasons to be provided for the rejection of a technical bid to demonstrate transparency.
Final Decision: The court dismissed the writ petition, upholding the rejection of the technical bid due to the petitioner's failure to comply with the bidding documents. The interim order passed by the court was vacated.
JUDGMENT
[1] Heard Shri O.P. Mehta, learned Advocate with Shri R.K. Kulajit, learned Advocate appearing for the petitioner and Shri N. Kumarjit Singh, learned Advocate General appearing for the respondents.
[2] By the instant writ petition, the petitioner has prayed for issuing a writ of mandamus or any other appropriate writ to direct the respondents for furnishing reasons for the rejection of its technical bid vide communication dated 24-09-2021 via email and for providing a reasonable period of time to file reply to those reasons; to direct the respondents to issue a speaking order after the same being considered by them; to issue a writ of mandamus or any other appropriate writ directing the respondents to open the financial bid of the petitioner and allot the bid to the petitioner in case its bid being found to be the lowest amongst all the bidders.
[3.1] Facts and circumstances, as narrated in the writ petition, are that the petitioner is a partnership firm engaged in the business of civil engineering works for the last almost 20 years. It is an “AA” class contractor recognised by the Government of Rajasthan and is associated with various government projects. It has an impeachable track record and significant presence in the States of Rajasthan and Punjab.
[3.2] The Respondent No.2, the Chief Engineer, Public Health Engineering Department (hereinafter referred to as “the PHED”) issued an NIT dated 27-02-2021 inviting bids from amongst the eligible bidders for the Manipur Water Supply Project for providing drinking water supply to 13 towns. The last date for submission of bids was 19-03-2021 but it was extended from time to time, of which the last one being the day on 10-09- 2021. The petitioner being eligible for it, submitted its bids on 09-09-2021. Thereafter, on 11-09-2021, the petitioner received a communication via email from the respondents informing that it should submit the audited reports of the last three (3) financial years and pursuant thereto, the petitioner provided the requisite audited report(s) to the respondents on 12-09-2021.
[3.3] It was a bolt from the blue for the petitioner when it received a communication dated 24-09-2021 via e-mail informing very cryptically, arbitrarily and capriciously that its technical bid had rejected on the ground that it was not technically qualified at the time of technical evaluation. In other words, the respondents, without assigning any reason, decided that the petitioner was not technically qualified for the financial bids. Immediately thereafter, on 24-09-2021 it-self, the petitioner wrote a letter via email to the respondents requesting them for providing reasons for the rejection of its bid at the time of technical evaluation. The respondents, instead of providing reasons for the rejection of its bid in order to maintain transparency, integrity and sanctity of the entire bidding process, denied the same vide their email dated 25-09-2021 contending that any query raised after the technical evaluation, should be entertained only after the finalization of the tender.
[3.4] Being aggrieved by the said communications, the instant writ petition was filed by the petitioner on various grounds. The rejection of its bid, was mechanical, arbitrary, cryptic and capricious with no reason being assigned for it and no transparency was maintained by them. The said communications smelt foul play and seemed to favour some other bidder in the guise of rejecting the technical bid of the petitioner. The non-providing of any reason for the rejection of bids and entertaining all the queries only after the finalization of the tender are untenable for the reason that once the bid having been finalized, the third party rights would have automatically created as per the terms of the contract and it would become impossible for the respondents to undo the contract. Therefore, the present mechani
The main legal point established in the judgment is the requirement for bidders to comply with the bidding documents, including the submission of documents in the specified format. The judgment empha....
Compliance with bidding conditions, specifically the demonstration of minimum average turnover, is crucial for the acceptance of bids in public procurement processes.
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 main legal point established in the judgment is the requirement for strict compliance with essential conditions in a tender, and the need for substantial compliance with the broader objectives of....
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 emphasized the importance of complying with tender qualification criteria and upheld the authority of the evaluation committee in assessing bid documents.
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