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2017 Supreme(Online)(Cal) 38

CALCUTTA HIGH COURT
Ashis Kumar Chakraborty, J.
Nagarajan S. v. Lieutenant Governor and Others
W. P. No. 47 of 2017



Eligibility for tender submissions hinges on strict compliance with stipulated licensing requirements. Failure to meet these conditions justifies rejection of bids.

Headnote:(A) Food Safety and Standards Act, 2006 - Section 31 - Writ petition challenging rejection of Technical Bid for catering canteen tender - Requirements of tender document mandated holding of a valid license under the Act - Petitioner failed to fulfill this criterion despite claiming to submit as a manager. (Paras 1-12)

(B) Tendering Process - Standards for eligibility - Terms of invitation to tender cannot be disregarded unless proven arbitrary; requirements must be strictly adhered to. (Paras 8-11)

Facts of the case:
Petitioner challenged the rejection of his Technical Bid as he lacked a requisite license under the Food Safety and Standards Act, despite providing other documentation. Decisions by the authorities declared a different party as successful tenderer.

Findings of Court:
The petitioner's Technical Bid was justifiably rejected due to non-compliance with mandatory requirements in the tender document. The Court upheld the authority's discretion in evaluating bids.

Issues: The core issue was whether the rejection of the Technical Bid was arbitrary, particularly regarding the licensing requirement under the Act.

Ratio Decidendi: The court held that submission without a valid license as stipulated in the tender document constitutes justification for rejection. Further, a petitioner must comply fully with the terms to qualify.

Result: The writ petition was dismissed with costs of Rs.30,000 payable to the District Legal Services Authority.

Table of Content
1. challenged rejection of technical bid due to lack of required licensing. (Para 1 , 2 , 4 , 5)
2. arguments presented regarding eligibility and proper licensing. (Para 6 , 7 , 8 , 9)
3. court's observations on mandatory compliance with tender requirements. (Para 10 , 11)
4. final ruling on the legality of bid rejection. (Para 12)

1. In this writ petition the petitioner has challenged the decision dated February 3, 2017 of the respondent Nos.3 and 4 to reject his Technical Bid and disqualifying him to participate in the Financial Bid for selecting the successful tenderer to run the catering canteen on board the Interisland vessel MV Chowra (in short ' the said vessel') owned by the Andaman and Nicobar Administration (in short ' the Administration').

2. The facts relevant for the decision in this writ petition are as follows: -
On January 3, 2017 the respondent No.4, the Deputy Director, Directorate of Shipping Services the Administration issued a notice inviting e - tender (hereinafter referred to as ' the said notice inviting tender') in two bid system, that is, Technical Bid and Financial Bid from the reputed Catering Contractor / Owner / Proprietor / Manager of Registered Hotel or Registered Canteen or Registered Restaurant or Registered Catering Services, having two years experience in the field of catering, for running Catering Canteen on board the said vessel for the period of two years. The said notice inviting tender expressly mentioned that the e - Tender document with detailed terms and conditions can be downloaded from the relevant portal, on payment of fees and all e - Tenders will be received upto 1500 hours on January 27, 2017 and the same will be opened by the Tender Committee on January 27, 2017 at 1530 hours. It was further mentioned that the Technical Bid will be opened at the first instance and at the second stage the Financial Bid of the technically qualified bidders only will be opened. On January 17, 2017, the said notice inviting tender was published in the local newspaper.

3. The petitioner, being interested to participate in the said tender procured the e - Tender document by downloading the same from the relevant portal. The petitioner has disclosed the said e - tender document in this writ petition. For the sake of convenience, some of the relevant terms mentioned in the said e - Tender document (hereinafter referred to as ' the tender document') are extracted hereinbelow: -
'1. TERMS OF e - TENDER:
1.3 The tenderers shall closely pursue all the clauses and term & conditions indicated in the e - tender documents before quoting. If the tenderer has any doubt about the meaning of any portion of the e - tender or find discrepancies / omissions in the e - tender document issued or incomplete or requires clarification, they may approach the Directorate before submission of e - bid. No. claim will be entertained later on the grounds of lack of knowledge.
 xxxx xxxx xxxx
3 Pre - qualification criteria: -
3.1 The average annual financial turnover of the tenderer for the two financial year i.e. of 2013-2014 and 2014 ' " 2015 should be at least be Rs. 15,00,000/- (Rupees Fifteen lakhs) each year with Govt. / Private agency.
3.2 The Tenderer should posses a minimum of two years experience as contractor / owner / Manager in catering services and to prepare and serve meals (Breakfast, Lunch, Dinner, Tea, Coffee, snacks and other items) for atleast 200 personnel on daily basis. The experience certificate for the above shall be acceptable only if issued by Govt. Department / Institutions / PSUs. A copy of the contract / work - order / agreement must accompany the experience certificate.
3.3 The Tenderer should have the license obtained from the office of the Commissioner of Food Safety under the Food Safety and Standards Act, 2006 for a period of two years for counting the experience.
 xxxx xxxx xxxx
4. Submissions to e - Tender: -
4.1. The Technical Bid:
 xxxx xxxx xxxx
4.1.3. The average annual financial turn



























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