IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD
SUREPALLI NANDA, J.
Kancharla Karnakar - Petitioner
Versus
The State of Telangana and others - Respondents
W.P. No. 1137 of 2023
Decided On : 11-04-2023
Constitution of India, 1950 - Article 14, 19(1)(g) - Right to Information Act, 2005 - Conditions of Tender - Supply of services - Issue a writ, order or direction declaring action of 5th respondent in issuing proceedings as being illegal, arbitrary, unconstitutional and in violation of terms and conditions of Tender and set aside proceedings - Held, Court opines that basic requirement of Article 14 is fairness in action by State, and non arbitrariness in essence and substance is heart beat of fair play and Respondents herein are bound to act validly and not whimsically for any ulterior purpose, respondents cannot give a goby to their own tender conditions more so when clause (g) of (I) of Tender clearly stipulates that bid shall be evaluated as per criteria specified in Tender document - Writ petition allowed.
ORDER :
Heard learned counsel Sri P. Pandu Ranga Reddy for the Petitioner and learned Standing Counsel appearing on behalf of Respondent No.2 and the Counsel for the unofficial Respondent No.6.
2. The main prayer sought for by the Petitioner is as follows :
“to issue a writ, order or direction and more particularly one in the nature of writ of Mandamus declaring (i) the action of the 5th respondent in issuing the proceedings vide Rc.No.Plg/Diet/BCM/2022-23 dated 10.06.2022, as being illegal, arbitrary, unconstitutional and in violation of the terms and conditions of the Tender and set aside the said proceedings dated 10.06.2022 and (ii) consequently direct the respondents to award the contract in favour of the petitioner for supply of DIET menu services at Area Hospital, Bharachalam, Bhadrari Kothagudem, 200 beds.”
3. The case of the petitioner, in brief, is as follows :
(a) The petitioner is engaged in the business of providing DIET contract services viz. procuring provision and stores, cooking/preparing, supply hygienic diet to the inpatients of the hospital. The petitioner conducts most of its works/contracts for and on behalf of Government agencies and the petitioner is solely dependent upon the income earned through it.
(b) The 4th respondent issued invited bids for providing DIET menu services. The selection and award of tender is through competitive bidding process and the contract is for a period of two years which can be extended by 4th respondent by not more than one year at its discretion.
(c) The tender is a two cover bases process. Cover I representing eligibility, technical and financial criteria as envisaged under Clause 4. Cover II representing financial bid. The evaluation of those tenderers who passed at Covern I stage only will be opened and evaluated.
(d) Clause 4 of the Tender Condition provides for Selection criteria. Sub Clause B of Clause 4 provides for criteria for evaluation of technical bid. In the Technical criteria a weightage of 50% is given to experience. Weightage 25% for IT returns and 25% for Annual Turnover. Only those bidder who score 70% marks will be qualified for financial bid.
(e) Vide G.O.Ms.No.32, dated 12.03.022 16% reservation is provided for persons belonging to SC community in DIET contracts. In category A hospital with less than 100 beds 20 are reserved for SCs out of 122 hospitals. Accordingly, in Category B hospitals with a bed strength of 100 and above and upto 500 beds 8 are reserved for SC community out of 53 hospitals. The Area Hospital Bhadrachalam, Bhadradri Kothagudem with 200 beds is one amongst the 8 and is exclusively reserved for SC community.
(f) The petitioner belongs to SC community and in the business of providing DIET services. As such the petitioner expected for award of bid. But the bid awarded to the 6th respondent, who is not eligible for the same. Therefore, the petitioner addressed letters to respondents 3 to 5, but there is no response from them. Hence, this writ petition.
4. The case of Respondents 2 and 5, in brief, is as follows :
(a) As per the terms and conditions as contemplated in tender notification, diet committee had evaluate all process with regard to the qualifications and other eligibilities.
(b) The award of contract in respect to Area Hospital Badradri – Kothagudem is reserved for SC category. The respondents are not aware whether the 6th respondent has produced two caste certificates vide bearing No.CNDO140779 and CNDO21708978354, and represented two agencies and participated in tender notification as one Arogya Services under the proprietor concern and the respondent No.6 under the partnership firm.
(c) The Diet committee issued proceedings dated 10.06.2022 to the 6th respondent who had already fulfilled all conditions and started supplying services last nine months to the patients and duty doctors in the Area Hospital, Bhadrachalam. Therefore, the
The court affirmed that the discretion of the tender evaluation committee to consider a bidder's past conduct is valid and does not violate principles of natural justice.
Judicial review of tender awards emphasizes the need for compliance with essential conditions while allowing governmental discretion in contract decisions unless tainted by arbitrariness or mala fide....
The court mandated adherence to tender conditions, emphasizing that procedural violations invalidate selections made via non-compliance with established rules.
Tender conditions are binding and deviations lead to arbitrariness, violating fairness in the procurement process.
Judicial review in tender matters is limited; rejection based on non-compliance with tender conditions is not arbitrary.
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