High Court of Bombay at Nagpur Bench Allows Writ Petition Challenging Disqualification of Tender Bid in Coal Transportation Contract. Joint Venture Experience Must Be Considered Collectively, Not Individually, Under Tender Conditions.

High Court: Bombay High Court Bench: NAGPUR In Favour of Accused
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Case Note & Summary

The petitioner, M/s. P.M.S. and S.T.C.JV, a joint venture, challenged the communication dated 12/05/2022 issued by respondent No.1, Western Coal Fields Ltd. (WCL), disqualifying its tender bid for not fulfilling the experience criteria as per the Notice Inviting e-Tender (NIT) for loading and transporting coal from Ghonsa OCM. The NIT was published on 17/12/2021, and bids were to be submitted by 01/01/2022. The petitioner submitted its bid along with 15 other bidders. The technical bid opening was extended to 30/06/2022. The petitioner argued that the joint venture's experience should be considered collectively, and that it had submitted all required documents. The respondents contended that the petitioner did not meet the experience criteria. The court analyzed the tender conditions and found that the disqualification was arbitrary and unreasonable, as the experience of the joint venture as a whole should have been considered. The court set aside the disqualification and directed the respondents to consider the petitioner's bid in accordance with the tender conditions.

Headnote

A) Tender Law - Experience Criteria - Joint Venture - The court considered whether the experience of a joint venture should be assessed collectively or individually. Held that the experience of the joint venture as a whole must be considered, and disqualification based on individual partner's lack of experience is arbitrary. (Paras 02-11)

B) Administrative Law - Judicial Review - Arbitrariness - The court examined whether the disqualification of the petitioner's bid was arbitrary and unreasonable. Held that the decision of the tender evaluation committee was not based on a proper interpretation of the tender conditions and was therefore set aside. (Paras 12-15)

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Issue of Consideration

Whether the disqualification of the petitioner's tender bid for not fulfilling the experience criteria as per the Notice Inviting e-Tender (NIT) was arbitrary and unreasonable, and whether the experience of a joint venture should be considered collectively rather than individually.

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Final Decision

The court allowed the writ petition, set aside the communication dated 12/05/2022, and directed the respondents to consider the petitioner's bid in accordance with the tender conditions.

Law Points

  • Tender law
  • Joint venture experience
  • Arbitrariness
  • Reasonableness
  • Judicial review of administrative action
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Case Details

2023 LawText (BOM) (01) 292

Writ Petition No.2682 of 2022

2023-01-17

ROHIT B. DEO, Y.G. KHOBRAGADE

Mr. Ankit Shrivastava for Petitioner, Mr. Atul Pande for Respondent No.1, Mr. S.S. Dewani for Respondent No.2

M/s. P.M.S. and S.T.C.JV

Western Coal Fields Ltd. and M/s. Ganga Transport

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Nature of Litigation

Writ petition challenging disqualification of tender bid

Remedy Sought

Petitioner sought quashing of communication dated 12/05/2022 disqualifying its bid and direction to consider its bid

Filing Reason

Petitioner's tender bid was disqualified for not fulfilling experience criteria as per NIT

Issues

Whether the disqualification of the petitioner's tender bid was arbitrary and unreasonable Whether the experience of a joint venture should be considered collectively or individually

Submissions/Arguments

Petitioner argued that the joint venture's experience should be considered collectively and that it had fulfilled all criteria Respondents argued that the petitioner did not meet the experience criteria as per NIT

Ratio Decidendi

The experience of a joint venture must be considered as a whole, and disqualification based on individual partner's lack of experience is arbitrary and unreasonable.

Judgment Excerpts

In the present petition, the petitioner has questioned communication dated 12/05/2022 issued by respondent No.1-W.C.L., thereby disqualifying the tender bid of the present petitioner for not fulfilling the criteria of experience as per Notice Inviting e-Tender (NIT).

Procedural History

The petitioner filed a writ petition challenging the disqualification of its tender bid. The court heard the matter and delivered judgment on 17/01/2023.

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High Court High Court of Bombay at Nagpur Bench Allows Writ Petition Challenging Disqualification of Tender Bid in Coal Transportation Contract. Joint Venture Experience Must Be Considered Collectively, Not Individually, Under Tender Conditions.
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