IMPORTANT POINT
The court upheld the rejection of the petitioner's firm in the technical bid for procurement of GI Pipes, emphasizing that the decision-making process was reasonable and not arbitrary, and that the court cannot substitute its opinion for the authority's decision in a commercial transaction.

JUDGMENT

The Chief Engineer, Public Health Engineering Department (PHED), Government of Manipur issued Invitation For Bids vide NIT No.CE/PHE/2P(R)/2021/4354 dated 26.03.2021 inviting online rate quotation from reputed manufacturers of G.I Pipe (Class Medium/Heavy) having necessary valid ISI Certificate or BIS license for procurement of GI Pipes, Class Medium/Heavy (Supply, delivery and stacking of GI Pipes) F.O.R. Imphal, Manipur.

Para 7 of the Invitation For Bids dated 26.03.2021 provided that bids must be submitted online w.e.f. 15.00 Hrs of 26.03.2021 and shall be accepted upto 12.00 Hrs of 21.04.2021 and Technical Bids will be opened at 13.00 Hrs of 21.04.2021 and opening of Financial Bids (for Technically qualified bidders only) will be notified later.

2. The petitioner firm being eligible and qualified submitted its bid on 20.04.2021 under Bid No.4523. Similarly, the respondent No.4, M/s BST Infratech Limited, respondent No.5, M/s Vishal Pipes Limited and Swastik Pipes Limited also submitted their bids against the Invitation For Bids dated 26.03.2021.

3. On 21.04.2021, the Chief Engineer, PHED, Government of Manipur issued an Office Memorandum indicating that the Technical Bid for procurement of GI Pipe, class Medium/Heavy, (Supply, delivery and stacking of GI Pipes) F.O.R Imphal, Manipur has been opened by the Tender Opening Committee and is under evaluation. Thereafter, another Office Memorandum dated 5.5.2021 was issued by the Chief Engineer (PHED), Government of Manipur stating that consequent upon the evaluation of Technical Bid by the e-tender Opening and Evaluation Committee, the Financial Bid for the technically qualified bidders of the e-tender for “Procurement of GI Pipes, class Medium/Heavy (supply, delivery and stacking) of GI Pipes, F.O.R, Imphal, Manipur” will be opened on 6.5.2021 at 11.30 AM.

4. A letter dated 5.5.2021 was also sent to the petitioner’s firm by email informing that the petitioner’s bid for the tender has been rejected during Technical evaluation by the duly constituted committee for the reason Technically not qualified. The petitioner’s firm thereafter wrote a letter dated 6.5.2021 by email to the concerned authority requesting to clarify the specific reason for the rejection of the petitioner’s bid for Tender ID:2021_PHED_1337_1 at the earliest. However, the petitioner’s firm did not receive any reply to the said request.

5. Being aggrieved, the petitioner approached this Court by filing WP(C) No.410 of 2021 with the following prayers:

“i. to quash and set aside the Self-generated Email or Official letter dated 05.05.2021 (Annexure A/6) addressed to the petitioner’s firm/Tender ID received by the petitioner’s firm via e-mail, to do justice;

ii) to direct the respondents/authorities to process, perform and conduct such tender matter as per the instructions, terms and conditions of the Notification/Invitation for Bids dated 26.03.2021 under NIT CE/PHE/2P(R)/2021/4354. In other words, to abide by the terms and conditions of the tender process;

iii) to direct the respondents/authorities to award the work contract as per the applicable terms and conditions of the Notification/Invitation For Bids dated 26.03.2021 under NIT CE/PHE/2P(R)/2021/4354 to do justice;

iv) to call for the relevant files or records which are under the custody of the respondents;

v) in the interim to direct the respondents not to proceed with the tender process in connection with the Notification/Invitation For Bids dated 26.03.2021 under NIT CE/PHE/2P(R)/2021/4354 and not to give effect to the Self-generated Email or Official letter dated 05.05.2021 during the pendency of the present writ petitions; Or in case, to stay the execution of work in pursuance to such Notification/Invitation for Bids dated 26.03.2021;

vi) to pass any appropriate order (s) or direction (s) which the Hon’ble Court may deem fit, proper and just in the na