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2023 Supreme(Online)(All) 18623

ALLAHABAD HIGH COURT
, J
Ziqitza Health Care Ltd. v. State of U.P.
Writ Petition



Advocates:
For the Appellants/Petitioners: S.C. Mishra, Sunil Kumar Chaudhary
For the Respondents: Ramesh Kumar Singh, Rakesh Vajpayee

Tender authorities possess the discretion to define submission requirements for bids, and courts should not intervene unless there is clear irrationality or arbitrariness in their decisions.

Headnote:(A) Tendering Process - Earnest Money Deposit - Tender Document specifies forms for submission of EMD, including Bank Guarantees, Demand Drafts, and Account Payee Receipts - Petitioner’s submission of Term Deposit Receipt was deemed non-responsive as it did not conform to terms - Court held that the tender authority is best suited to interpret its own requirements. (Paras 12, 18, 24, 28)

(B) Judicial Review - Courts should exercise restraint in overturning tender committee decisions, ensuring they are free from arbitrariness or mala fides. (Paras 18, 26)

(C) Arbitrariness Challenge - Arguments highlighted that respondent sought clarifications which petitioner addressed, alleging wrongful exclusion from tender process. Court assessed submissions but found no merit. (Paras 21, 27)

(D) Final Outcome: Writ dismissed, allowing respondents to proceed with tendering process.

Table of Content
1. initial hearings and interim orders regarding the petitioner's bid. (Para 1 , 2 , 3)
2. background concerning the livestock health tender opportunity. (Para 4 , 5)
3. details of the tender notice, submission requirements, and emd specifics. (Para 6 , 7 , 8)
4. arguments from both sides concerning the emd's compliance with tender conditions. (Para 12 , 13 , 14 , 15 , 16)
5. court's reflection on the limits of judicial review in tender decisions. (Para 18 , 19 , 22 , 24 , 26)
6. conclusion and dismissal of the writ petition. (Para 28)

1. Heard Shri S.C. Mishra, learned Senior Counsel assisted by Shri Sunil Kumar Chaudhary, learned Counsel for the petitioner and Shri Ramesh Kumar Singh, learned Additional Advocate General assisted by Shri Rakesh Vajpayee, learned Additional Chief Standing Counsel for the State.

2. The present writ petition has come to be filed by the petitioner invoking the writ jurisdiction of this Court, thereby seeking two fold prayer; (i) quashing of order dated 07.11.2022 uploaded on the official website of the Department of Animal husbandry on 09.11.2022, whereby the bid submitted by the petitioner has been declared as non - responsive for the reason that the same did not meet the requirement of clause 12(c) of the RFP relating to the aspect of submission of EMD and (ii) challenge to the order dated 09.11.2022 has been also made, whereby the tender summary report was uploaded and the Department of Animal Husbandry has fixed the date of opening of financial bids on 10.11.2022 at 2:30 PM.

3. Since the financial bid of the bidders, who have been found to be qualified in the technical process were going to be considered in the after - noon of the same day, this court, as an interim measure vide its order dated 10.11.2022 had directed that the petitioner's financial bid be also included in the process of consideration, failing which the contract shall not be finalized without leave of this court.

4. The brief facts germane for deciding the present issue raised before this court lies in a narrow compass. The Government of India having envisaged its ambitious scheme relating to livestock health launched the "Livestock Health and Disease Control Scheme". The Operational Guidelines for Livestock Health and Disease Control was issued subsequently, which inter - alia imbibed the need for Establishing and Strengthening of Veterinary Hospitals and Dispensaries (ESVHD) and Mobile Veterinary Units (MVU). The State of Uttar Pradesh keeping in view the operational Guidelines and acting through the office of Director, Disease Control and Farms, Department of Animal Husbandry, Uttar Pradesh, Lucknow invited e - tender for hiring of services of support organizations to operationalize the Mobile Veterinary Unit (MVU) at different locations / department institutions of the state of Uttar Pradesh along with establishment of call center.

5. Although a tender for operation of the aforesaid MVU was floated wherein the entire State was taken as a Unit for bid, however subsequently, a policy decision was taken by the state of Uttar Pradesh for regulating the effective operation of MVU and as such as per the new policy, the State of Uttar Pradesh was divided into five clusters / packages. It was envisaged in the policy that though any bidder can bid for any number of packages, but a successful bidder even if it is L - l in more than one Package will be given only one Package for operation depending upon his preference. Once, the said preference had been exercised, the other Package would go to L - 2 bidder upon its choice, provided it agrees to work at the rates of L - 1.

6. The policy being at place, the State of Uttar Pradesh through the Director, Disease Control and Farms, Department of Animal Husbandry, Uttar Pradesh, Lucknow, notified the Tender. Apparently, the Notice Inviting tender was issued on 02.09.2022 and the pre - bid meeting was slated to be on 09.09.2022 and the Bid due date was 03.10.2022. The Notice inviting

































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