Bombay High Court Dismisses Petition Challenging Tender Disqualification for Non-Compliance with Green Building Certificate Condition. Interim IGBC Certificate Does Not Satisfy Requirement of Completed Green Building Project.

High Court: Bombay High Court In Favour of Prosecution
  • 522
Judgement Image
Font size:
Print

Case Note & Summary

The petitioner, Pride Ventures (I) Pvt. Ltd., challenged its disqualification from a tender issued by the Public Works Department for construction of a Collector Office building. The tender required bidders to upload a 'green building certificate' issued by the Indian Green Building Council (IGBC). The petitioner submitted an interim pre-certificate dated September 2021, but the respondent sought a final certificate for the completed project. The petitioner failed to provide the final certificate and was disqualified. Subsequently, a second call for tender was issued. The petitioner challenged both the disqualification and the second call. The court held that the condition requiring a green building certificate for a completed project was clear, and the interim certificate did not satisfy it. The disqualification was not arbitrary, and the second call was valid. The petition was dismissed.

Headnote

A) Tender Law - Essential Conditions - Green Building Certificate - Interpretation of Tender Conditions - The court considered whether an interim IGBC pre-certificate satisfies the requirement of a 'green building certificate' for a completed project. Held that the condition required a certificate for a completed green building, and an interim pre-certificate does not meet that requirement. (Paras 9-10, 24)

B) Tender Law - Judicial Review - Scope - The court reiterated that interference in tender matters is limited to cases of arbitrariness, mala fides, or bias. Held that the decision to disqualify the petitioner was not arbitrary as the condition was clear and the petitioner failed to comply. (Paras 25-26)

C) Tender Law - Alternate Remedy - Maintainability - The court held that the existence of an alternate remedy under Government Resolution dated 17.09.2019 does not bar the writ petition when the tender process has moved to a second call, rendering the alternate remedy ineffective. (Para 17)

D) Tender Law - Joint Venture - Authority to Sue - The court found that the petitioner, as a member of the joint venture, had authority to file the petition based on the power of attorney executed in its favour. (Para 16)

Subscribe to unlock Headnote Subscribe Now

Issue of Consideration

Whether the disqualification of the petitioner for non-compliance with the condition regarding green building certificate was justified, and whether the subsequent second call for tender is valid.

Subscribe to unlock Issue of Consideration Subscribe Now

Final Decision

The petition is dismissed. The disqualification of the petitioner and the second call for tender are upheld.

Law Points

  • Tender law
  • Essential conditions
  • Green building certification
  • IGBC pre-certificate
  • Judicial review of tender process
  • Alternate remedy
Subscribe to unlock Law Points Subscribe Now

Case Details

2024 LawText (BOM) (8) 55

Writ Petition No. 2098 of 2024

2024-08-05

Mangesh S. Patil, Shailesh P. Brahme

2024:BHC-AUG:16926-DB

Mr. D.P. Palodkar (Petitioner), Mr. P.S. Patil (Respondent 1-3), Mr. Gunaratna Sadawarte (Respondent 4)

Pride Ventures (I) Pvt. Ltd.

State of Maharashtra, Public Works Department, Chief Engineer, Superintending Engineer, Executive Engineer

Subscribe to unlock Case Details (Citation, Judge, Date & more) Subscribe Now

Nature of Litigation

Writ petition challenging disqualification in a public works tender and subsequent second call for tender.

Remedy Sought

Petitioner sought quashing of disqualification and second call, and direction to consider its bid as compliant.

Filing Reason

Petitioner was disqualified for not providing a final green building certificate, only an interim pre-certificate.

Previous Decisions

Another bidder (Hi Tech Wonder J.V.) filed WP 552/2024 which was withdrawn; second call was issued thereafter.

Issues

Whether the petitioner's disqualification for non-compliance with the green building certificate condition was justified. Whether the second call for tender is valid. Whether the petition is maintainable given alternate remedy and joint venture authority.

Submissions/Arguments

Petitioner argued that the condition was vague, and the interim IGBC certificate should be sufficient compliance. Respondent argued that the condition required a completed green building certificate, and the petitioner failed to provide it; the disqualification was proper.

Ratio Decidendi

The condition requiring a green building certificate for a completed project is an essential condition. An interim pre-certificate does not satisfy it. The disqualification was not arbitrary, and the second call is valid.

Judgment Excerpts

The petitioner was disqualified with the reason that it was noncompliant with the terms and conditions regarding ‘green building certificate’. The interim certificate issued by IGBC would only demonstrate that he was undertaking construction of a green building but had no certification about completion of any green building.

Procedural History

Tender notice published 08.09.2023; corrigendum added green building condition on 09.09.2023; petitioner submitted bid on 06.10.2023; technical bids opened 10.10.2023; respondent sought clarification on 30.10.2023; petitioner replied on 01.01.2024; disqualification communicated on 08.01.2024; another bidder filed WP 552/2024 on 12.01.2024; petitioner filed this petition on 16.02.2024; WP 552/2024 withdrawn on 10.07.2024; second call published on 12.07.2024; petitioner amended petition to challenge second call.

Acts & Sections

  • Constitution of India: Article 226
Subscribe to unlock full Legal Analysis Subscribe Now
Related Judgement
High Court High Court of Karnataka Allows Criminal Petition Against Orders Directing Regular Bail Despite Subsisting Anticipatory Bail. Held That Filing of Charge-Sheet Does Not Terminate Anticipatory Bail; Accused Need Not Apply for Regular Bail Unless Bail Or...
Related Judgement
Supreme Court Supreme Court Upholds Returned Candidate in Election Corrupt Practice Case Involving Sarpanch Assistance Under Section 123(7)(f) of Representation of People Act, 1951. Sarpanch of Grama Panchayat in Orissa Not Person in Service of Government as Lacks...