Bombay High Court Allows Petitions Challenging Rejection of Technical Bids in Mid-Day Meal Training Tender — Failure to Provide Opportunity to Cure Deficiencies Violates Natural Justice. The court set aside the Technical Summary Report and directed the respondents to permit the petitioners to cure deficiencies and re-evaluate their bids.

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

The petitioners, M/s Food Safety Services and M/s Global Institute for Education and Research Foundation, challenged the Technical Summary Report dated 29.03.2023 issued by the Directorate of Primary Education, Maharashtra, which declared their technical bids as non-responsive in a tender for imparting training to Cooks and Helpers under the Mid-Day Meal Scheme (Pradhan Mantri Poshanshakti Nirman Yojana). The tender was floated on 02.03.2023. The petitioners argued that they were not given any opportunity to explain or cure the alleged deficiencies in their bids before being disqualified. The court, comprising Justices A.S. Chandurkar and M.W. Chandwani, heard arguments on 13.04.2023 and pronounced judgment on 03.05.2023. The court held that the action of the respondents in rejecting the bids without providing an opportunity to cure deficiencies was arbitrary and violative of principles of natural justice. The court set aside the Technical Summary Report insofar as it declared the petitioners' bids non-responsive and directed the respondents to permit the petitioners to cure the deficiencies within a specified period and then re-evaluate their bids. The court also directed that the tender process be completed expeditiously.

Headnote

A) Administrative Law - Tender Process - Natural Justice - Opportunity to Cure Deficiencies - The court considered whether the rejection of technical bids as non-responsive without giving the bidders an opportunity to rectify deficiencies was arbitrary. Held that the tender inviting authority must provide a reasonable opportunity to bidders to cure minor deficiencies before declaring their bids non-responsive, failing which the action is violative of principles of natural justice (Paras 2-5).

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Issue of Consideration

Whether the rejection of the petitioners' technical bids as non-responsive without providing an opportunity to cure the alleged deficiencies is arbitrary and violative of principles of natural justice.

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Final Decision

The court allowed the writ petitions, set aside the Technical Summary Report dated 29.03.2023 insofar as it declared the petitioners' technical bids non-responsive, and directed the respondents to permit the petitioners to cure the deficiencies within a specified period and then re-evaluate their bids. The tender process was directed to be completed expeditiously.

Law Points

  • Principles of natural justice
  • opportunity to cure deficiencies
  • technical bid evaluation
  • tender process
  • non-responsive bid
  • Mid-Day Meal Scheme
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Case Details

2023 LawText (BOM) (05) 57

Writ Petition No. 2108/2023 and Writ Petition No. 2269/2023

2023-05-03

A.S. Chandurkar, M.W. Chandwani

S.P. Dharmadhikari (Senior Advocate) with Kaustubh Kadasane for petitioner in WP 2108/2023; A.A. Naik for petitioner in WP 2269/2023; N.P. Mehta (AGP) for respondent nos.1 and 2; D.V. Chauhan with A.D. Choudhari for respondent no.3

M/s Food Safety Services (through its Proprietor Radharaman Kamalkishor Lahoti) and M/s Global Institute for Education and Research Foundation (through its authorized representative Swapnil Vijayrao Banode)

State of Maharashtra, Directorate of Primary Education, and Shree Analytical Testing and Research Laboratory

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Nature of Litigation

Writ petitions challenging the rejection of technical bids as non-responsive in a tender process.

Remedy Sought

Setting aside of the Technical Summary Report dated 29.03.2023 and direction to allow the petitioners to participate in the tender process.

Filing Reason

The petitioners' technical bids were declared non-responsive without providing an opportunity to cure alleged deficiencies.

Issues

Whether the rejection of the petitioners' technical bids as non-responsive without providing an opportunity to cure deficiencies is arbitrary and violative of principles of natural justice.

Submissions/Arguments

The petitioners argued that they were not given any opportunity to explain or cure the alleged deficiencies before their bids were declared non-responsive. The respondents contended that the tender conditions did not require providing such an opportunity.

Ratio Decidendi

The tender inviting authority must provide a reasonable opportunity to bidders to cure minor deficiencies before declaring their bids non-responsive, failing which the action is arbitrary and violative of principles of natural justice.

Judgment Excerpts

In these writ petitions, challenge is raised to the Technical Summary Report holding the technical bids of the petitioners to be non-responsive thus preventing them from further participation in the tender process. The court held that the action of the respondents in rejecting the bids without providing an opportunity to cure deficiencies was arbitrary and violative of principles of natural justice.

Procedural History

The tender was floated on 02.03.2023. The Technical Summary Report was issued on 29.03.2023 declaring the petitioners' bids non-responsive. The petitioners filed writ petitions challenging the report. Arguments were heard on 13.04.2023 and judgment was pronounced on 03.05.2023.

Acts & Sections

  • Maharashtra Public Trusts Act, 1950:
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