Case Note & Summary
The petitioner, G. S. Commercial Corporation, challenged a corrigendum dated 11th August 2023 issued by the Municipal Corporation of Greater Mumbai (MCGM) modifying Section 10 Condition No.6 of a tender dated 19th July 2023 for the supply of liquid chlorine gas. The original condition required bidders to have a liquid chlorine storage plant within a 150 km periphery of Mumbai City. The corrigendum altered this to require a storage plant within the periphery of Mumbai City, effectively excluding bidders with plants outside Mumbai but within 150 km. The petitioner, who had a storage plant at a distance of 120 km from Mumbai, was thus rendered ineligible. The court examined whether the corrigendum was arbitrary and unreasonable. It noted that the first tender floated on 10th March 2023 had the same condition and was cancelled due to lack of bidders. The subject tender was identical. The court found that the corrigendum was issued without any rationale and was aimed at favoring certain bidders. It held that the modification was arbitrary, unreasonable, and violative of Article 14 of the Constitution. The court quashed the impugned corrigendum and directed MCGM to proceed with the tender in accordance with the original condition.
Headnote
A) Tender Law - Judicial Review - Arbitrariness - The court examined whether a corrigendum modifying a tender condition requiring a storage plant within 150 km periphery of Mumbai City was arbitrary. Held that the modification was unreasonable and quashed the corrigendum (Paras 1-33). B) Tender Law - Level Playing Field - The court considered the principle of level playing field in public tenders. Held that the impugned corrigendum tilted the playing field in favor of certain bidders and was thus invalid (Paras 20-25). C) Tender Law - Legitimate Expectation - The court discussed the doctrine of legitimate expectation in the context of tender conditions. Held that the petitioner had a legitimate expectation that the tender conditions would not be altered arbitrarily (Paras 26-30).
Issue of Consideration
Whether the impugned corrigendum dated 11th August 2023 modifying Section 10 Condition No.6 of the tender dated 19th July 2023 is arbitrary, unreasonable, and violative of Article 14 of the Constitution of India.
Final Decision
The court allowed the writ petition and quashed the impugned corrigendum dated 11th August 2023. The court directed Respondent No.2 to proceed with the tender in accordance with the original condition contained in the tender dated 19th July 2023.
Law Points
- Tender law
- Judicial review of tender conditions
- Arbitrariness
- Reasonableness
- Level playing field
- Doctrine of legitimate expectation
