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2021 Supreme(Online)(Chh) 2651

CHHATTISGARH HIGH COURT
, J
Maa Tarini Traders v. State of Chhattisgarh and Others
Writ Petition



Advocates:
For the Appellants/Petitioners: Mr. Anand Dadariya
For the Respondents: Mr. Vikram Sharma, Mr. Shivang Dubey

The tendering process must adhere strictly to statutory rules, particularly when it comes to valid bidders and quotation limits.

Headnote:(A) Mining Regulations - Chhattisgarh Minor Mineral Ordinary Sand (Quarrying and Trade) Rules, 2019; Tendering Procedures - The court held that the tendering process followed by the authorities was arbitrary and illegal, as it violated the stipulated rules by allowing a rejected bidder to re-participate and disregarding the most competitive valid bid. The court reaffirmed that the lowest bid submitted could not be disregarded, as it satisfied the statutory requirements. (Paras 2, 28, 29)

Table of Content
1. challenging arbitrary actions in tender processes (Para 1 , 3)
2. judicial scrutiny in tender decision-making processes (Para 2 , 4 , 6 , 9)
3. arguments regarding the validity of bids and tender processes (Para 5 , 7 , 8)
4. regulatory framework governing auction processes for quarrying (Para 10 , 11 , 12)
5. requirements for auction bidding procedures (Para 14 , 15 , 18)
6. permissibility of fresh tenders in absence of better bids (Para 24 , 27 , 28)
7. setting aside improper tender decisions (Para 29)
8. conclusion allowing the writ petition (Para 30)

1. The alleged arbitrary course of action pursued by the Respondent authorities in connection with the tender floated for granting quarrying lease in a "reverse auction process", eliminating the qualified bidder / Petitioner, by considering the fresh quote of the already rejected bidder along with bids quoted by four other persons within the extended time and allotting the same to the 4th Respondent (father of the rejected bidder) by drawing "lots" (as all the quotes were of uniform rate), is the subject matter of challenge in this writ petition.

2. At the very outset it has to be mentioned that, scrutiny is being conducted by this Court only to the permissible extent in view of the settled position of law laid down by the Apex Court as per ever so many judgments including in Tata Cellular v. Union of India , 1994 (6) SCC 651 , Afcons Infrastructure Limited v. Nagpur Metro Rail Corporation Limited , 2016 (16) SCC 818 and Another, State of Jharkhand and Others v. CWE - Soma Consortium , 2016 (14) SCC 172 , and the recent one in The Silppi Constructions Contractors v. Union of India (UOI) and Others, 2019 (11) SCALE 592 and such other verdicts to the effect that the judicial scrutiny shall be with utmost restraint; that it is the prerogative of the Government / Awarder to accept or reject the tender; that the probe shall confine to the "decision making process" and not the decision and further that no interference shall be made unless it is arbitrary, irrational, perverse or against public interest.

3. The 2nd Respondent floated Annexure - P / 2 Notification Inviting Tender (NIT) on 09.10.2019 inviting bids for grant of quarry lease of ordinary sand at various sand mines located in the District Raigarh in the State, clearly giving the terms and conditions with reference to the relevant rules i.e. The Chhattisgarh Minor Mineral Ordinary Sand (Quarrying and Trade) Rules, 2019 (hereinafter referred to as "Rules of 2019"). As per the said rules, the bids have to be submitted separately (Technical Bid and Price Bid respectively) and the bidding is by way of Reverse Auction process.
According to the Petitioner, he satisfied all the requirements and submitted the bid accordingly in respect of the Tender for "Raigarh - D".
Bid was submitted by another person as well, by name one Gopesh Jaisawal. After the last date for submitting the bid, the technical bids were opened on the next date i.e. 06.11.2019 and on evaluation, both the bidders were held as technically qualified. Thereafter, the price bids were opened; when it was found that both the bidders had quoted the rock bottom rate (Rs. 46 per cu.m.), below which nobody can quote as per the relevant Rules / NIT. But, in the case of the other bidder by name Gopesh Jaisawal, it was found that the requisite extent of "bid security" was not deposited by him and hence his price bid was rejected. Instead of identifying the Petitioner as the "preferred bidder" to be proceeded with further steps for declaring him as the successful bidder and awarding the quarrying lease in favour of the Petitioner, the 2nd Respondent, as per Annexure - P / 1 dated 13.11.2019, invited fresh bids granting "seven more days" and obtained four more bids. In the four additional bids so submitted, it included the bid of the person by name Gopesh Jaisawal (whose bid was already rejected) as well, who could not have been permitted to participate in the process; b





























































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