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2022 Supreme(Online)(Chh) 1664

CHHATTISGARH HIGH COURT
, J
Clean Coal Enterprises Private Limited (M/s.) Bilaspur and Others v. South Eastern Coalfields Limited Chhattisgarh and Others
W. P. C. No. 5266 of 2021



Advocates:
For the Appellants/Petitioners: Mr. Ashish Anand Barnad
For the Respondents: Mr. Vaibhav Shukla

Tender evaluations require strict adherence to documentation as specified in the bid criteria; deviations do not warrant judicial interference unless arbitrary.

Headnote:The judgment discusses the rejection of a technical bid submitted by a Joint Venture for a tender notice, based on failure to meet work experience criteria set forth. The court affirms that the rejection is based on the non-fulfillment of relevant document requirements according to the tender terms. It highlights that tender evaluations should adhere strictly to laid down criteria, and procedural mistakes do not validate judicial interference unless there's arbitrariness or mala fides. Thus, the rejection stands as justified based on the presented documentation.

Table of Content
1. basics of bid and tendering process. (Para 2 , 4 , 5 , 6)
2. arguments for and against bid rejection. (Para 7 , 8)
3. judicial observations and legal precedents. (Para 9 , 10 , 12 , 13 , 15)
4. principle regarding commercial contracts. (Para 14)
5. final decision on the application. (Para 16)

1. Heard Mr. Ashish Anand Barnad, learned counsel for the petitioners. Also heard Mr. Vaibhav Shukla, learned counsel for the respondent Nos. 1 and 2.

2. The 3 (three) petitioners formed a joint venture by the name and style of 'M/s Gayatri Mining and Logistics JV' (hereinafter referred to as the JV) and had responded to an e - tender notice, hereinafter referred to as NIT, bearing No. SECL / BSP / CMC / e - Tender / 473 for hiring of Heavy Earth Moving Machinery (HEMM) and allied equipment for Over Burden Removal, loading in to tippers, transportation and unloading of excavated materials and silt, dumping, dozing, scrapping / removal of all bands, preparation / maintenance of haul road, water sprinkling and spreading of excavated material at the site shown and levelling dumps as per direction of the Management / Engineer - in - charge for a period of 1795 days at Amadand OCP, Jamuna Kotma Area.

3. The estimated value of the tender is Rs.2455,40,47,830.00 (Two Thousand Four Hundred and Fifty Five Crore Forty Lacs Forty Seven Thousand Eight Hundred and Thirty Only).

4. The technical bid of the JV was rejected by an order dated 06.12.2021.

5. Challenging the rejection of the technical bid of the JV, this petition is filed along with a prayer for a declaration that the JV is qualified for the technical bid and consequently, to direct the respondent No. 2 to open the financial bid of the JV.

6. Twelve bidders had participated pursuant to the said NIT and out of them, tender of three bidders, including that of the JV, were rejected. Remarks, in the order dated 06.12.2021, as against the JV, was indicated as "Failed to submit confirmatory document on subhead of 'Work Experience' required as per NIT'. This was followed by detailed reasons of rejection of bidders. It will be appropriate to take note of the reasons of rejection of bid of the JV, as reflected in the order dated 06.12.2021, which is as under :
"5) Reasons of Rejection of Bidder (s)
"1. M/s GAYATRI MINING AND LOGISTICS -
Rejected under Confirmatory documents subhead of Work Experience.
WORK EXPERIENCE:
(I) Min value required - 50% of Annualised value = Rs. 2,49,64,42,1889; Period of 07 years: 01.09.2014 to 31.08.2021;
(II) Claimed period as per BSCS: 01.09.2018 to 31.08.2019
1. In BSCS (Bid Submission Confirmation Sheet), the bidder had claimed to have executed
7 different works for a total updated value of Rs. 4,17,84,46,789 during the period 01.09.2018 to 31.08.2019. On evaluation of the uploaded documents, it has been observed that the bidder did not upload work execution / Performance certificate for the works at sl Nos. 5, 6 and 7 claimed in the BSCS.
2. From the work experiences at Sl Nos. 1, 2, 3 and 4 claimed by the bidder in the BSCS and submitted the work Execution / Performance Certificates from the employers, the value of works executed is Rs.91,55,030.68 + Rs.13,83,49,177.00 + Rs.75,00,62,84 + Rs.96,52,76,887 = Rs. 118,77,87,378.68 which is less than the required minimum value of work experience.
3. The bidder was asked to upload the Work Execution Certificates from the employer for the work description, value and period of work claimed in Sl Nos. 5, 6 and 7 of BSCS under the Confirmatory Document Subhead of 'Work Experience' as per clause Nos. 6(A) and 7(2) of the NIT.
4. In response, the bidder submitted the clarification by submitting self certification confirming that the value of work performed by their JV partner and their subsidiaries are as follows:
1. Hind Energy and Coal Benefication Inida Ltd. - Rs.45,07,10,559
2. Hindi Multi Services Pvt. Ltd. Rs. 28,91,84,700.
3. Radiant Coal Benefication Pvt Ltd - Rs. 53,02,41,708. The bidder informed that their JV partners





























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