IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD
J. SREENIVAS RAO, J.
M/s Excel Sports, Rep. by its Sole Proprietor, Rajinder Singh Khanuja - Petitioner
Versus
The Managing Director, Sports Authority of Telangana State & Others. - Respondents
Writ Petition Nos. 37932 of 2022 and 4930 of 2023
Decided On : 28-04-2023
Constitution of India, 1950 - Article 14, 226 - Tenders - Direct to open financial bid - Writ petition seeking Writ of Mandamus declaring action of 1st Respondent in disqualifying Petitioner from tendering process as arbitrary, illegal, contrary to tender conditions and violates Article 14 of Constitution of India - Held, Judgments relied upon by learned counsel for petitioner are not in support of his contentions - Said judgments were followed in subsequent judgment in National Highspeed Rail Co. Ltd. (supra) which supports contentions of respondents - It is already stated supra that respondent No.2 issued tender notification and technical bids were opened and wherein petitioner was technically disqualified and after opening financial bids and also after following due process awarded contract vide Lr. in favour of respondent Nos. 3 and 4 - Entire tender process including awarding of contract is concluded pursuant to Tender Notification - Hence, petitioner is not entitled to reliefs sought in writ petitions as petitioner has not questioned rejection orders passed by respondent No.1 and also not questioned awarding of contract in favour of successful bidders - Admittedly, petitioner raised several disputed questions of facts in writ petition and are not amenable under jurisdiction of this Court under Article 226 of Constitution of India - Petitioner has to prove and establish same by adducing necessary evidence before competent Civil Court - Writ petitions dismissed.
ORDER :
1. These two writ petitions are filed seeking following reliefs :
W.P.No.37932 of 2022
This writ petition is filed seeking Writ of Mandamus declaring the action of the 1st Respondent in disqualifying the Petitioner from the tendering process in pursuance and furtherance of NIT No.1/DE/SATS/2022-23 dated 14.07.2022 as arbitrary, illegal, contrary to the tender conditions and violates Article 14 of Constitution of India. Consequently the Hon’ble Court will be pleased to direct the 1st Respondent to open the financial bid submitted by the Petitioner and award the contract if the Petitioner is eligible.
W.P.No.4930 of 2023
This writ petition is filed seeking Writ of Mandamus declaring the action of the 1st Respondent rejecting the representation of the Petitioner dated 26.09.2022 on 04.11.2022 the representation dated 07.11.2022 on 24.12.2022 without considering the accompanying documents in proper perspective, which otherwise meet the tender requirements as arbitrary, illegal, contrary to the tender conditions, not in public interest and violates Article 14 of Constitution of India. Consequently, the Hon’ble Court will be pleased to direct the 1st Respondent to open and consider the financial bid of the Petitioner, if it is in order.
2. Heard, Sri Prasad Rao Vemulapalli, learned counsel for the petitioner, learned Assistant Government Pleader representing learned Advocate General Office, appearing on behalf of respondent Nos.1 and 2, Sri J. Ashvini Kumar, learned counsel appearing for respondent No.3, Sri L. Ravichander, learned Senior Counsel appearing on behalf of Sri T. Chaitanya Kumar, learned counsel for respondent No.4.
3. Brief Facts of the case are:
The petitioner submits that the petitioner firm is a proprietary concern and conducting a business of manufacturing and supply of sports goods, sports kits, hosiery connected therewith for the last more than 20 years. The petitioner firm was registered with Department of Industries and Commerce, Government of Karnataka bearing No.AC-1629 dated 16.10.2000. Respondent No.2 called for tenders on behalf of respondent No.1 on 14.07.2022 through NIT No.1/DE/SATS/2022-23 and the same was published in Eenadu, Hindu and Siasat newspapers on 15.07.2022 for procurement of Sports kits vide tender ID No.337445 which is extracted here under:
| Bill calling date | 15.07.2022 |
| Downloading of Bid document | 16.07.2022 from 05.00 pm |
| Pre-bid conference date/time | 22.07.2022 |
| Last date for submission of queries | 23.07.2022 |
| Bid closing date/time | 02.08.2022 at 3.30P.M. |
| Bid validity period | 90 days from the date of opening of bids |
| Period of completion of project | 3 months |
| Technical Bids opening date/time | 02.08.2022 at 04.00 P.M. |
| Date and time for submission of Sample TKP Sports Kit | On the next day of the bid closing date & time i.e., on or before 03.08.2022 by 3.30 P.M. |
| Earnest Money Deposit(EMD) | Rs.90.00 Lakhs DD/BG issued by any scheduled bank having a branch in Hyderabad/Secunderabad in favor of the VC & MD, SATS, Hyderabad |
| Bid Transaction Fee | Non-refundable transaction fee to M/s. Telangana State Technology Service, the service provider for epronouncement platform as per Government Orders from time to time. |
| Contact person | Sri Deepak, Dy.Executive Engineer, SATS. Ph.No.040-23450247, Cell No.9440832393 |
4. Respondents Nos.1 & 2 conducted bid meeting on 22.07.2022. With the consent of prospective bidders, the tender finalization committee has taken a decision to extend the time upto 05.08.2022 for submission of tenders.
5. The general eligibility criterion of prospective bidders is provided in Section-V of tender document, which are extracted hereunder:
Tata Cellular vs Union Of India
State of Punjab and Others Vs. Mehar Din
N.G. Projects Limited Vs. Vinod Kumar Jain and Others
National High Speed Rail Corporation Limited Vs. Montecarlo Limited & Anr.
E.P. Royappa v. State of Tamil Nadu
The court upheld the authority's discretion in setting eligibility criteria for tenders, emphasizing that judicial review is limited to cases of arbitrariness or unreasonableness.
Judicial review in public procurement is limited; courts refrain from interference unless clear evidence of arbitrariness or bad faith is established.
Point of Law- Court in all the aforesaid decisions has cautioned time and again that courts should exercise a lot of restraint while exercising their powers of judicial review in contractual or comme....
The court upheld the authority's discretion in evaluating tender bids, emphasizing the need for compliance with mandatory conditions and the absence of arbitrariness in disqualification decisions.
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