Bombay High Court Allows Petition Challenging Disqualification in Tender for Supply of Micronutrient Supplements Due to Arbitrary Evaluation. Court Sets Aside Rejection of Technical Bid and Directs Re-evaluation with Transparency.

High Court: Bombay High Court Bench: AURANGABAD
  • 2
Judgement Image
Font size:
Print

Case Note & Summary

The petitioner, M/s. Pharmaveda (I) Pvt. Ltd., a manufacturer of specialty food products including dietetic foods, challenged its disqualification in a technical bid for a tender issued by the Chief Executive Officer, Zilla Parishad Nandurbar (respondent No.1). The tender was for the supply of multi-micronutrient supplement granules to children aged 3-6 years and to pregnant and lactating mothers in tribal areas. The petitioner claimed that it had uploaded all required documents, but they were not properly evaluated, and that the bids of respondent Nos.2 and 3 (Narmada Enterprises and Shree Enterprises) were accepted despite lacking the necessary FSSAI license. The petitioner also alleged lack of transparency as the documents of respondent Nos.2 and 3 were not visible. The court, after hearing the parties, found that the rejection of the petitioner's bid was arbitrary and without proper application of mind. The court set aside the disqualification and directed respondent No.1 to re-evaluate the technical bids in accordance with the tender terms and procurement rules, ensuring transparency. The court also noted that the requirement of FSSAI license was mandatory and needed to be verified.

Headnote

A) Tender Law - Technical Bid Evaluation - Non-Application of Mind - Procurement Rules - The petitioner's technical bid was rejected despite uploading all required documents, indicating non-application of mind by the evaluation committee. The court held that the rejection was arbitrary and set aside the disqualification. (Paras 2-3)

B) Tender Law - Eligibility Criteria - Requirement of FSSAI License - The petitioner contended that respondent Nos.2 and 3 did not possess the required FSSAI license at the time of bid submission. The court examined the tender conditions and found that the license was a mandatory requirement. (Para 3A)

C) Tender Law - Transparency - Evaluation of Bids - The petitioner alleged that the documents uploaded by respondent Nos.2 and 3 were not visible or the facility was disabled, raising concerns about transparency. The court directed the respondent to re-evaluate the bids with proper transparency. (Para 2)

Subscribe to unlock Headnote Subscribe Now

Issue of Consideration

Whether the disqualification of the petitioner's technical bid and acceptance of respondent Nos.2 and 3's bids were arbitrary and contrary to the tender terms and procurement rules.

Subscribe to unlock Issue of Consideration Subscribe Now

Final Decision

The court allowed the petition, set aside the disqualification of the petitioner, and directed respondent No.1 to re-evaluate the technical bids in accordance with the tender terms and procurement rules, ensuring transparency.

Law Points

  • Tender evaluation must be transparent and in accordance with procurement rules
  • Non-application of mind in rejecting a bid is arbitrary
  • Bidder must possess required licenses at the time of bid submission
  • Technical evaluation must consider all uploaded documents
Subscribe to unlock Law Points Subscribe Now

Case Details

2024 LawText (BOM) (01) 96

Writ Petition No.14938 of 2023

2024-01-18

Smt. Vibha Kankanwadi, S. G. Chapalgaonkar

2024:BHC-AUG:1040-DB

Mr. A. S. Khandeparkar, Senior Counsel a/w Mr. Sujay Gawade, Advocate i/b Mr. R. R. Karpe, Advocate for petitioner; Mr. P. S. Patil, Advocate for respondent No.1; Mr. V. D. Sapkal, Senior Counsel i/b Mr. S. R. Sapkal, Advocate for respondent No.2; Mr. V. M. Jaware, AGP for respondent No.4

M/s. Pharmaveda (I) Pvt. Ltd.

Chief Executive Officer, Zilla Parishad Nandurbar, Narmada Enterprises, Shree Enterprises, State of Maharashtra

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

Nature of Litigation

Writ petition challenging disqualification in technical bid and acceptance of other bids in a tender process.

Remedy Sought

Petitioner sought quashing of its disqualification and rejection of bids of respondent Nos.2 and 3.

Filing Reason

Petitioner alleged that its technical bid was wrongly rejected despite uploading all documents, and that respondent Nos.2 and 3 lacked required licenses.

Issues

Whether the disqualification of the petitioner's technical bid was arbitrary and contrary to tender terms. Whether respondent Nos.2 and 3 possessed the required FSSAI license at the time of bid submission. Whether the evaluation process lacked transparency.

Submissions/Arguments

Petitioner argued that it had uploaded all required documents but they were not properly evaluated, and that respondent Nos.2 and 3 did not have FSSAI license. Respondent No.1 argued that the evaluation was done as per tender conditions.

Ratio Decidendi

The rejection of a bid without proper application of mind and in violation of procurement rules is arbitrary and liable to be set aside. Tender evaluation must be transparent and all mandatory requirements, such as licenses, must be verified.

Judgment Excerpts

The petitioner is challenging its disqualification in the technical bid as well as the acceptance of technical bid of respondent Nos.2 and 3 by respondent No.1. Though the petitioner had uploaded all the documents, they were not properly evaluated and the documents which were to be uploaded by respondent Nos.2 and 3 were not visible or that facility was disabled.

Procedural History

The petitioner filed a writ petition in the High Court of Bombay at Aurangabad challenging the disqualification. The court reserved judgment on January 8, 2024, and pronounced it on January 18, 2024.

Acts & Sections

  • Companies Act:
Subscribe to unlock full Legal Analysis Subscribe Now
Related Judgement
High Court Bombay High Court Allows Petition Challenging Disqualification in Tender for Supply of Micronutrient Supplements Due to Arbitrary Evaluation. Court Sets Aside Rejection of Technical Bid and Directs Re-evaluation with Transparency.
Related Judgement
High Court High Court of Karnataka Dismisses Appeal in Specific Performance Suit — Upholds Trial Court Decree for Sale of Commercial Apartment. Agreement to Sell Dated 28.10.2004 for Rs.9,25,000 with Rs.8,50,000 Paid as Advance — Defendant Failed to Execute...