Case Note & Summary
The petitioner, M/s Krushna Kumar Gokulchand, a registered partnership firm, challenged a communication dated 30.09.2021 by which it was disqualified from participating in a tender process initiated by the State of Maharashtra for transport of food-grains for public distribution for the period 2021-2024. The tender was issued on 19.05.2021, and the request for proposal was issued on 21.05.2021, with the last date for submission being 11.06.2021. The work was to be governed by a Government Resolution dated 15.01.2021. After scrutiny, the petitioner was asked to remove certain defects by 16.08.2021, which it did on 15.08.2021. However, on 30.09.2021, the petitioner was informed that it was not qualified for two reasons: (i) it did not satisfy the requisite experience of work as prescribed in the tender notice, and (ii) the details furnished regarding the experience certificate were not acceptable. The petitioner contended that it had submitted an experience certificate from M/s Silver Road Lines, a private transport company, showing that it had transported food-grains for that company, which constituted 'similar work' under the tender conditions. The respondents argued that the experience certificate must be from a government or public sector undertaking, and that the certificate from a private entity was not valid. The court framed the issue as whether the experience certificate from a private entity could be considered for satisfying the tender condition. The court held that the term 'similar work' in the Government Resolution dated 15.01.2021 does not restrict the source of experience to government or public sector entities, and that work done for a private party can also be considered if it is similar in nature. The court found that the petitioner's experience of transporting food-grains for M/s Silver Road Lines was similar to the work required under the tender. The court also noted that the respondents had not provided any opportunity to the petitioner to explain the certificate before disqualifying it. The court allowed the writ petition, quashed the communication dated 30.09.2021, and directed the respondents to re-evaluate the petitioner's bid by considering the experience certificate from M/s Silver Road Lines. The court also directed that the tender process be completed within four weeks.
Headnote
A) Tender Law - Eligibility Criteria - Experience Certificate - The court considered whether a certificate of experience issued by a private entity (M/s Silver Road Lines) could be treated as valid for satisfying the tender condition requiring experience of 'similar work' under the Government Resolution dated 15.01.2021. The court held that the term 'similar work' is not restricted to work done for government or public sector undertakings, and that work done for a private party can also qualify as similar work, provided the nature of work is comparable. The court found that the petitioner had submitted a certificate from M/s Silver Road Lines showing experience of transporting food-grains, which was similar to the work required under the tender. The court directed the respondents to re-evaluate the petitioner's bid by considering the experience certificate from the private entity. (Paras 5-10) B) Tender Law - Judicial Review - Disqualification - The court examined the scope of judicial review in tender matters and held that while courts should not interfere with policy decisions or technical evaluations, they can intervene if the decision is arbitrary, irrational, or in violation of principles of natural justice. The court found that the disqualification of the petitioner was based on a narrow and erroneous interpretation of the tender condition, and thus was arbitrary. (Paras 11-13)
Issue of Consideration
Whether the petitioner's disqualification from the tender process on the ground of lack of requisite experience was valid, and whether the experience certificate issued by a private entity satisfies the tender condition of 'similar work'.
Final Decision
The court allowed the writ petition, quashed the communication dated 30.09.2021, and directed the respondents to re-evaluate the petitioner's bid by considering the experience certificate from M/s Silver Road Lines. The tender process was directed to be completed within four weeks.
Law Points
- Interpretation of tender conditions
- eligibility criteria
- experience certificate
- similar work
- Government Resolution dated 15.01.2021
- principles of natural justice
- judicial review of administrative action
