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2021 Supreme(Manipur) 34

IN THE HIGH COURT OF MANIPUR AT IMPHAL
Kh. Nobin Singh, Ahanthem Bimol Singh, JJ.
Nezone Pipes & Structures - Appellant
Versus
State Of Manipur & Ors. - Respondents
WA Nos. 39-41 of 2021
Decided On : 11-10-2021

Advocates appeared:
Shri Prashant Bhushan, Sr. Advocate; Shri I. Denning, Advocate; Ms. Neha Rathi, Advocate, for the Appellants; Shri H.S. Paonam, Sr. Advocate; Shri Pradip Tarafder, Advocate; Shri Rajiv Malik, Advocate, Shri N. Kumarjit, AG, for the Respondents

IMPORTANT POINT
Compliance with bidding conditions, specifically the demonstration of minimum average turnover, is crucial for the acceptance of bids in public procurement processes.

Headnote:

G.I. Pipes - Bid Rejection - Section-III A.1 Sl. 4 - The court discussed the rejection of the technical bid of the appellant based on the minimum average turnover requirement for G.I. Pipes. The court analyzed the bidding documents, audited financial statements, and the certificate issued by the Chartered Accountant to determine the compliance with the turnover criteria. The court found that the appellant failed to demonstrate the minimum average turnover as required, leading to the rejection of the bid.

Fact of the Case:

The appellant submitted bids for supply of G.I Pipes in response to an NIT. The technical bid was rejected due to insufficient average turnover. The appellant filed multiple writ petitions challenging the rejection.

Finding of the Court:

The court found that the rejection of the technical bid was justified as the appellant failed to demonstrate the minimum average turnover for G.I. Pipes as required by the bidding documents.

Issues: The main issue was whether the rejection of the technical bid was arbitrary, illegal, and discriminatory. Other issues included the compliance with bidding conditions and the authority's failure to seek clarification from the appellant.

Ratio Decidendi: The appellant failed to demonstrate the minimum average turnover for G.I. Pipes as required by the bidding documents, leading to the justified rejection of the bid. The authority's decision was not unfair or discriminatory.

Final Decision: The court dismissed the writ appeals, upholding the rejection of the technical bid, and found no infirmity in the judgment and order passed by the learned Single Judge.

JUDGMENT

Kh. Nobin Singh, J. - Heard Shri Prashant Bhushan, learned Senior Advocate with Shri I. Denning, learned Advocate and Ms. Neha Rathi, learned Advocate appearing for the appellants; Shri H.S. Paonam, learned Senior Advocate with Shri Pradip Tarafder, learned Advocate appearing for the respondent, M/s BST Infratech Limited; Shri Rajiv Malik, learned Advocate appearing for the respondent, Vishal Pipes Limited and Shri N. Kumarjit, learned AG appearing for the State respondents.

[2] The above writ appeals are directed against the common judgment and order dated 16-08-2021 passed by the learned Single Judge of this Court and since they have arisen out of the said common judgment and order, the writ appeals are being disposed of by this Common judgment and order.

[3.1] The facts and circumstances as narrated therein, which have led to the filing of these writ appeals, are, in short, that an NIT dated 26-03- 2021 was issued by the Chief Engineer, Public Health Engineering Department, Government of Manipur (hereinafter referred to as “the PHED”) inviting bids for supply of G.I Pipes. The appellant being eligible for it, submitted its bids. The technical bids were opened on 21-04-2021, while financial bids were opened on 06-05-2021 but on 05-05-2021, a communication was sent to the appellant, through e-mail, informing that it was not qualified in the technical bid.

[3.2] On 06-05-2021 itself, the appellant submitted an application, via e-mail, to the authority concerned requesting him to clarify and provide the specific reason for rejecting its technical bid. As there was no response from the authority, the appellant approached this Court by way of a writ petition being WP(C) No.410 of 2021 wherein an interim order dated 18-05-2021 was passed directing that the respondents therein should communicate the reason why the appellant was found technically not qualified. In compliance with the said order, the Joint Secretary (PHE), Government of Manipur issued a letter dated 01-06-2021 to the appellant informing that it did not have the minimum average turnover in terms of the tender conditions. Questioning it, an application being MC(WP) No.113 of 2021 was filed but when the matter was listed on 08- 06-2021 for consideration, this Court was of the opinion that it would be appropriate for the appellant to challenge it in a fresh writ petition.

[3.3] The writ petition being WP(C) No.427 of 2021 came to be filed by the appellant on 15-06-2021 challenging the validity and correctness of the letter dated 01-06-2021. On 15-07-2021 when the matter was listed for consideration, this Court passed an interim order and at the same time, it allowed the application for impleadment of the successful bidders as the private respondents. Although the respondent, M/S BST Infratech Limited did not file counter affidavit, the respondent No.1 to 3 and the respondent, M/S Vishal Pipes Limited did file their respective counter affidavits on 05-08-2021. Three applications were filed by the respondents praying for vacation of the interim order which remained pending for disposal. On 09-08-2021, the appellant filed its rejoinder affidavits to the said counter affidavits filed on behalf of the respondents as stated hereinabove.

[3.4] Immediately after WP(C) No.427 of 2021 having been filed, the appellant submitted an application dated 17-06-2021 under the provisions of RTI for furnishing information, followed by a legal notice for keeping the execution of work in abeyance. A representation dated 18-06-2021 was also submitted requesting the authority to furnish copies of the approval letter, letter of acceptance and supply order and in respect thereof, a writ petition being WP(C) No.446 of 2021 was filed before this Court but it was dismissed on 06-07-2021.

[3.5] The State respondents uploaded a letter dated 24-05-2021 addressed to the Chief Engineer, PHED, enclo

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