2019 Supreme(Telangana) 205

IN THE HIGH COURT OF FOR THE STATE OF TELANGANA
P. NAVEEN RAO, J.
M/s. Sabhari Electricals & KCP Engineers Pvt. Ltd. – Appellant
Versus
State of Telangana, Department of Municipal Administration & Urban Development, Secretariat, Hyderabad, rep. by its Prl. Secretary & Others – Respondent
Writ Petition Nos. 34231, 35812 of 2018
Decided on : 21-10-2019

Headnote:

Constitution of India, 1950 – Article 226 – Tender notification was issued by the respondent no.1 calling for Design, Supply, Installation, Testing, Commissioning of illumination of the Outer Ring Road, for the Main Carriage Way/Inter changes/Junctions/Service Roads at junctions and Under Pass areas –Operation & Maintenance of illumination with connected switch gear for a period of five years from the date of Operational Acceptance Certificate being taken up with HGCL funds – The petitioners have responded to the same – Three bids were filed including that of petitioners – Challenged – Held, To achieve these objectives, proper LUX level is the core aspect – Further, expert's report disclose that luminaries must maintain 'specified driver output current limit' – If the driver current exceeds the specified limit LEDs can become brighter which would increase heat which in tern would degrade light output at a faster rate reducing the life of luminair – Specified driver output current limit is also a core aspect and both are primary requirements and are crucial to effective functioning of illumination of ORR – Thus, whoever takes up the job must be technically competent and have prior experience – The assessment of technical competence is through MOCKUP tests, on field and in the laboratory – Improper execution of such project may result in more serious consequences and may also impose higher financial burden on HGCL. Thus, MOCKUP test plays crucial role – A bidder who failed to clear MOCKUP test on field and twice in laboratory tests cannot be said to be technically qualified and competent to execute the contract – It appears from the representations stated to have been made by M/s. KMV Projects, it believes in 'trial and error' principle – If trial and error is permissible, probably many others would have participated with initial proposals with specifications which they would believe would allow required LUX levels and on failure to achieve LUX levels to submit fresh specifications and so on – Merely because a bidder proposes for awarding the contract to two participants by splitting the work, when both bidders have not satisfied the parameters set out in the bid document and such splitting is not prescribed in the bid document cannot validate illegal procedure followed by HGCL – Thus, awarding of contract to M/s. KMV Projects is not valid on several parameters noted above – Overall assessment, it is seen that M/s. KMV Projects failed on two important parameters – M/s. Sabhari also failed on power backup parameter and its price bid was far higher compared to M/s. KMV Projects – The Bajaj Electricals Limited failed at the initial stage – Thus, all three bidders are not qualified – Further, technology is changing rapidly – There may be better lighting systems now as compared to April, 2018, at a cheaper price and may be more competition – HGCL would benefit if they go for fresh bids – Petition disposed of. (Para 52 and 53)

Facts of the case:

Tender notification dated 31.1.2018 was issued by the respondent no.1 calling for Design, Supply, Installation, Testing, Commissioning of illumination of the Outer Ring Road, Hyderabad for the Main Carriage Way/Inter changes/Junctions/Service Roads at junctions and Under Pass areas from Kokapet to Shamshabad (0.00 km to 136 km) total 136 Km length and Operation & Maintenance of illumination with connected switch gear for a period of five years from the date of Operational Acceptance Certificate being taken up with HGCL funds. The petitioners have responded to the same. Three bids were filed including that of petitioners.

Findings of the case:

To achieve these objectives, proper LUX level is the core aspect – Further, expert's report disclose that luminaries must maintain 'specified driver output current limit' – If the driver current exceeds the specified limit LEDs can become brighter which would increase heat which in tern would degrade light output at a faster rate reducing the life of luminair – Specified driver output current limit is also a core aspect and both are primary requirements and are crucial to effective functioning of illumination of ORR – Thus, whoever takes up the job must be technically competent and have prior experience – The assessment of technical competence is through MOCKUP tests, on field and in the laboratory – Improper execution of such project may result in more serious consequences and may also impose higher financial burden on HGCL. Thus, MOCKUP test plays crucial role – A bidder who failed to clear MOCKUP test on field and twice in laboratory tests cannot be said to be technically qualified and competent to execute the contract – It appears from the representations stated to have been made by M/s. KMV Projects, it believes in 'trial and error' principle – If trial and error is permissible, probably many others would have participated with initial proposals with specifications which they would believe would allow required LUX levels and on failure to achieve LUX levels to submit fresh specifications and so on – Merely because a bidder proposes for awarding the contract to two participants by splitting the work, when both bidders have not satisfied the parameters set out in the bid document and such splitting is not prescribed in the bid document cannot validate illegal procedure followed by HGCL – Thus, awarding of contract to M/s. KMV Projects is not valid on several parameters noted above – Overall assessment, it is seen that M/s. KMV Projects failed on two important parameters – M/s. Sabhari also failed on power backup parameter and its price bid was far higher compared to M/s. KMV Projects – The Bajaj Electricals Limited failed at the initial stage – Thus, all three bidders are not qualified – Further, technology is changing rapidly – There may be better lighting systems now as compared to April, 2018, at a cheaper price and may be more competition – HGCL would benefit if they go for fresh bids.

Result: Petition disposed of.