IN THE HIGH COURT OF TELANGANA
N.V. Shravan Kumar, J.
Mohammed Saleem - Petitioner
Versus
State of Telangana Rep by its Secretary Ministry of Animal Husbandry Dairy Development and Fisheries & another - Respondents
W.P.Nos.18543 of 2024; 25466, 27046, 27104, 27225, 27226 and 34350 of 2023
Decided On : 03-10-2024
| Table of Content |
|---|
| 1. tender cancellation process and requirements. (Para 1 , 2) |
| 2. overview of tender submission and qualifications. (Para 3 , 4 , 5 , 6) |
| 3. arguments regarding tender criteria. (Para 8 , 9 , 10 , 11) |
| 4. counterarguments from the respondents. (Para 12 , 13 , 15) |
| 5. court's analysis of tender processes. (Para 31 , 32 , 33 , 34) |
| 6. final order and dismissal of petitions. (Para 46 , 47 , 48 , 49) |
ORDER :
N.V. Shravan Kumar, J.
W.P.No.18543 of 2024 is filed to declare the Order dated 08.07.2024 vide Proc.No.648/T2/MAF/2021 whereby the second respondent cancelled the Tender Notification No.684/T2/MAF/TSSGDCFL/2021 dated 01.09.2023 for the work of Redevelopment of Modern Abattoir Facility MAF, Chengicherla on “Redevelopment, Operate, Maintain and Transfer (ROMT) basis in PPP mode” after opening the price bid of the petitioner as illegal, contrary to law and to set aside the same and consequentially to award the tender for the work of “Redevelopment of Modern Abattoir Facility MAF Chengicherla on Redevelopment, Operate, Maintain and Transfer (ROMT) basis in PPP mode” to the petitioner.
Writ Petition Nos.25466, 27046, 27104 and 34350 of 2023 are filed to declare the Request for Proposal (RFP) issued by respondent No.2 vide Tender No.684/T2/MAF/TSSGDCFL/2021 dated 01.09.2023 to the extent of imposing onerous condition of Technical/Experience Criteria stipulated under Clause 4.5.8 wherein a bidder is required to have an “Operations and Management” experience for a minimum period of 12 years in the last 25 years on license/lease/O and M basis for any Integrated Modern Abattoir Facility for both Cattle and Sheep established by a Central/State/ Local Government Department/Authority/ Corporation / Government Cooperative Federation in India and also not permitting the Consortiums from participating in the bidding process in terms of the said tender as being arbitrary illegal, irrational, discriminatory and unreasonable apart from being malafide and in violation of Article 14, 19(1)(g) and 21 of the Constitution of India and consequently
(i) Quash the term/condition stipulated under Clause 4.5. 8 of the Request for Proposal issued vide tender dated 01.09.2023; and
(ii) direct respondent No.2 to permit and allow even ‘Consortiums’ to participate in the bidding process.
Writ Petition Nos.27225 and 27226 of 2023 are filed to declare the action of respondent No.2 in insisting on the submission of the tender bid mandatorily by online upload to its e-portal/website as illegal and irrational and consider the tender bid of the petitioner sent by e-mail on 26.09.2023 to the e-mail ID of respondent No.2.
2. As the issue involved in all the writ petitions are related to tender condition in Notification No.684/T2/MAF/ TSSGDCFL/2021 dated 01.09.2023, all the writ petitions are being disposed of by way of this common order and W.P.No.18543 of 2024 is taken as the lead case.
3. The brief facts of the case as per the pleadings are that respondent No.2 has floated the tender on e-pronouncement platform for the work of “Redevelopment of Modern Abattoir Facility (MAF), Chengicherla on Redevelopment, Operate, Maintain and Transfer (ROMT) basis in PPP mode” with an estimated contract value of Rs.25.00 Crores for a License period of 30 years (15+15). As per the tender notification dated 01.09.2023, bids were to be submitted online and also by way of hard copies within the stipulated time as per the Request for Proposals (RFP) conditions. Respondent No.2 opened technical bid to evaluate the eligibility of the bidders meeting the criteria stipulated in the Bid notification. Thereafter, technical bids will be opened and after short listing, respondent No.2 would proceed to open the price bids only for short listed bidders and only the highest among them would be awarded with work.
4. The petitioner submits that it is an existing ‘O & M Agency’ and had the Right of First Refusal (ROFR) and as per earlier prevailing norms and tender notifications, no negotiation i
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The authority may cancel a tender without reason if lack of competition is evident; bidders have no enforceable rights without formal acceptance of their bids.
The cancellation of a tender by an authority after the bidding process is complete is arbitrary unless supported by clear, substantiated justifications, reaffirming the need for transparency and fair....
The tender inviting authority has the right to accept or reject any bid and to annul the bidding process at any time prior to the award of contract without assigning any reason.
Lowest bidder has no vested right to contract; authority may cancel tender for valid reasons like cartel without malice; tender conditions not judicially reviewable unless arbitrary.
The cancellation of a tender process before technical evaluation does not confer vested rights to bidders, and adherence to procurement laws is mandatory in future processes.
The authority's interpretation of tender conditions is paramount, and non-compliance with explicit requirements justifies cancellation of bids.
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