IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD
LALITHA KANNEGANTI, J.
Sewer Cleaning Machines Owners Association & another - Appellant
Versus
The State of Telangana & Ors. - Respondent
Writ Petition No. 44552 of 2022
Decided on : 28-12-2022
Constitution of India, 1950 – Articles 14, 19(1)(g), 226 – Grabber with Hopper and Roding Facility – Self Declaration of Possessing of own Sewer Cleaning Vehicle of 400 tonne capacity – Held, Court comes to an irresistible conclusion that respondents have amended condition to suit a particular section of people – Amended clause “Self Declaration possessing of own Sewer Cleaning Vehicle of 400 Tone Capacity and shall invariably uploaded Registration Certificate as per RTA Rules along with Self Declaration (As per Format)” is struck down as being violative of Articles 14 and 19(1)(g) of Constitution of India and respondents shall permit petitioner to participate in tender as per original condition “MoU between bidder and equipment manufacturer (OEM) (Both chassis and fabrication) (as per format)/Self Declaration possessing of sewer Cleaning Machines (as per Format)(Copies of Registration Certificate, Valid Fitness certificate and Valid Insurance, Valid permit shall be uploaded) – If equipment is not already fitted on chassis, bidder shall invariably upload MoU between bidder and manufacturer of equipment (Jetting, Grabber with hoper and Roding machine) – Writ Petition allowed.
ORDER :
This Writ Petition is filed seeking the following relief:
(b) consequently, set aside Amendment No. 1/CGM(E)O&MC.III/DGM(E)/2022-2023/dated 03.12.2022 in so far as deleting the facility which allowed “MOU between bidder and Equipment manufacturer (OEM)” in placing bids for Tender bearing IFB No. 364/CGM(E)/O&MC-III/DGM(E)/MSCM/2022-23 dated 1511.2022 & 67 others (eTN Nos. 364 to 431/2022-2023) for the purpose of engaging “Mini Sewer cleaning Machines having Jetting, Grabber with Hopper and Roding facility” as being unfair, unjust, arbitrary, discriminatory, illegal and mala fide,
(c) Alternatively, to direct the Respondent Nos. 2 & 3 to permit the petitioners to participate in the tenders bearing IFB No. 364/CGM(E)/O&MC-III/DGM(E)/MSCM/2022-23 dated 15.11.2022 & 67 (total 68 tenders) by inviting persons for engagement of “Mini Sewer cleaning Machines having Jetting, Grabber with Hopper and Roding facility”, by accepting MoU between bidder and Equipment Manufacturer (OEM) in the interest of justice.”
2. Sri A. Krishna Kaundinya, learned Senior Counsel representing Sri Sathvik Makunur, learned counsel for petitioners submits that petitioner Association is an Association of reputed contractors, providing services to the Hyderabad Metropolitan Water Supply & Sewerage Board and petitioners have demonstrated track record and experience on the field of providing Big Airtech machines to Respondent No. 2 for its sewerage treatment purpose. All through the eligibility criteria for public tenders in respect of engaging Big Airtech machines contain basic parameters to the extent of establishing the bona fides of the contractor, technically and financially. The said eligibility criteria continues till date in respect of the Big Airtech machines, being utilised by the 2nd respondent. In the year 2016, the respondents have come up with a proposal to engage Mini Sewage Cleaning Machines with only Jetting capability as part of its operations. The eligibility criteria stipulated for the public tenders calling for such Mini Sewage Cleaning Machines was similar to that of the big Airtech machines. The technology, functioning, operation and skill set required for the Big Airtech and the mini sewage machines is largely similar and identical and not different in any way. The successful bidders were awarded the contract to supply mini sewage cleaning machines for a period of one year as per the tender conditions. The said contract was unilaterally extended in favour of the same individuals on a yearly renewal basis for a period of five years as against the actual contract award term of one year. It is submitted that as a result of such unwarranted extensions, for the additional period of five years from its actual contract award term of one year, the same individuals were entrusted with the work of providing the said services of mini sewage machines to the 2nd respondent. It is submitted that in the year 2022, after a lapse of six years, the 3rd respondent had floated 68 new tenders for engaging mini sewage cleaning machines with an add-on feature of “Grabber with Hopper and Roding facility” in addition to the usual Jetting capacity. In the said tender, there was a requirement of prior experience of mini sewer cleaning machines for a minimum period of five years during the last ten financial years in any government departments,
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Court upheld that tender condition excluding bidders who applied for CDR is not arbitrary, ensuring public interest and project completion.
Judicial review of tender conditions is limited; courts should not interfere unless actions are arbitrary, discriminatory, or mala fide, ensuring public interest is prioritized.
Judicial review of tendering decisions is limited to assessing legality, with courts refraining from substituting the tender authority's decisions unless in cases of illegality or manifest arbitrarin....
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