Case Note & Summary
The petitioner, Kolhapur Vidyut Apprentice Swayam Rojgar Sahakari Sanstha Ltd., filed a writ petition under Article 226 of the Constitution of India challenging the Letter of Award dated 31 December 2021 issued by Respondent No. 3 (Superintendent Engineer, MSEDC Kolhapur) in favour of Respondent No. 4 (M/s All Services Global) for providing skilled and unskilled manpower on an outsource basis for the Kolhapur circle. The tender was published on 15 January 2021, and eight bidders participated. Technical bids were opened on 8 February 2021, and only three bidders were qualified, including Respondent No. 4. The petitioner was not qualified. Financial bids were opened on 17 March 2021, and Respondent No. 4 emerged as the L-1 bidder. On 16 December 2021, Respondent Nos. 2 and 3 issued a circular regarding modalities of awarding contracts, which was expressly stated to be prospective and applicable only to future contracts. The Letter of Award was issued on 31 December 2021 for a period from 1 February 2022 to 31 March 2023, and Respondent No. 4 submitted a performance bank guarantee of Rs. 1,30,53,100 on 15 January 2022. The petitioner filed the writ petition on 14 January 2022. The court considered the issue of locus standi, noting that the petitioner was not qualified in the technical bid and therefore had no right to challenge the award. The court also noted that the circular relied upon by the petitioner was prospective and did not apply to the tender in question. The court dismissed the petition, holding that the petitioner lacked locus standi and that the challenge was without merit.
Headnote
A) Constitutional Law - Locus Standi - Judicial Review of Tender Process - Article 226 of Constitution of India - A bidder who was not qualified in the technical bid has no locus standi to challenge the award of contract to the successful bidder. The court held that the petitioner, having been disqualified at the technical evaluation stage, cannot maintain a writ petition challenging the Letter of Award issued to the respondent No. 4. (Paras 1-9) B) Contract Law - Tender Process - Technical Qualification - Prospective Circular - The circular dated 16/12/2021 was expressly prospective and applicable only to future contracts, not to the tender in question. The petitioner's reliance on the circular was misplaced as the tender process had already concluded with the opening of financial bids. (Paras 4-9)
Issue of Consideration
Whether a bidder who was not qualified in the technical bid has locus standi to challenge the Letter of Award issued in favour of the successful bidder.
Final Decision
The writ petition is dismissed. The court held that the petitioner, not being a qualified bidder, has no locus standi to challenge the award. The circular relied upon was prospective and not applicable to the tender.
Law Points
- Locus standi
- Judicial review of tender process
- Non-qualified bidder cannot challenge award
- Article 226 of Constitution of India
