Court upheld that tender condition excluding bidders who applied for CDR is not arbitrary, ensuring public interest and project completion.

1. This writ petition is field seeking writ of mandamus declaring the action of the respondents in incorporating condition No. 14.2 (The bidder who have applied for corporate debt restructuring (CDR) in the last 2 financial years (2011-12 and 2012-13) shall not be considered for bid qualification. For this, certificate of Chartered Accountant by the bidder must be produced) of Notice Inviting Tenders issued pursuant to "Chittoor District Drinking Water Supply Project" pursuant to 'e' NIT No. 1 / Incap / D / CDDWSP / Tender Notice / 608/2013, dated 11.10.2013 as illegal and arbitrary and consequently to set aside the same.

2. The case of the petitioner is that he is a Special Class Contractor, registered with Government of Andhra Pradesh in terms of GO (Ms.) No. 94 dated 01.07.2013. The petitioner has vast experience in execution of various water works, irrigation works etc. He executed the works for Government of Andhra Pradesh, Tamilnadu etc. The respondents have issued 'e' procurement notice vide 'e' NIT No. 1 / Incap / D / CDDWSP / Tender Notice / 608/2013, dated 11.10.2013 in the daily news papers intimating that online tenders are invited under 'e' procurement platform for 9 packages for pipeline works under LS mode of tendering of the work "Chittoor District Drinking Water Supply Project" in Chittoor District. The last date for submission of bids is 08.11.2013. The petitioner downloaded the tender documents for the following works which are packages III, VI and VII: a) Manufacture, supply, lowering, laying, jointing, testing and commissioning of 2200 mm dia (clear opening after inlining) of MS water supply Raw water gravity trunk main from Ch.25.00 (near Dakkili village) to 50.0km (Vampalli Village) - Package III. The estimated contract value is Rs.2,213,462,970/- Vide IFB No. 1 / INCAP / D / CDDWSP / 608/2013/3. b) Manufacture, supply, lowering, laying, jointing, testing and commissioning of 1900 mm dia (clear opening after inlining) of MS water supply clear water pumping main from Water treatment plant at Vikruthamala to C. Mallavaram - Package VI, vide IFB No. No. 1 / INCAP / D / CDDWSP / 608/2013/4. The estimated contract value is Rs.1,616,105,845/-. c) Manufacture, supply, lowering, laying, jointing, testing and commissioning of 1200 mm dia( clear opening after inlining) of MS clear water pumping main from C. Mallavaram to Mamandur (Reach - 1) and Manufacture, supply, lowering, laying, jointing, testing and commissioning of 1300 mm dia (clear opening after inlining) of MS clear water pumping main from Mamandur to Shankampalli (Reach - 2) - Package VII, Vide IFB No. No. 1 / INCAP / D / CDDWSP / 608/2013/5. The estimated contracted value is Rs.1,490,170,567/-.

3. After downloading, the petitioner noticed that the respondents have inserted Condition No. 14.2 of Notice Inviting Tenders (for short 'NIT'). It is stated that the above said condition has been put for the first time in government Contracts and hitherto the same was never made an eligibility criteria in respect of like works called by Government or its agencies. Except meeting the above condition, the petitioner satisfied all other eligibility criteria required for executing the above mentioned works. It is stated that making an application for CDR, by any stretch of imagination, cannot be viewed as a disqualification. The object of CDR has been evolved by the Government of India and Reserve Bank of India to ensure a timely and transparent mechanism for restructuring the corporate debts of viable corporate entities