Case Note & Summary
The petitioner, Jalgaon Golden Transport Pvt. Ltd., participated in a tender process issued by the Food Corporation of India (FCI) for appointment of a Handling and Transport contractor at MSWC, Dondaicha for two years. The tender notice was published on 07.05.2020. The petitioner submitted its bid, but the Technical Evaluation Committee rejected its technical bid on the ground that the petitioner failed to submit a valid registration certificate under the Maharashtra Value Added Tax Act, 2002 (MVAT Act) and the Central Sales Tax Act, 1956 (CST Act). The petitioner challenged this rejection by filing a writ petition under Article 226 of the Constitution of India. The court noted that the petitioner had submitted a registration certificate under the MVAT Act, but the committee considered it invalid because it was not issued by the appropriate authority. However, the court found that the committee did not provide any opportunity to the petitioner to cure the alleged deficiency or to explain the validity of the certificate. The court held that the principles of natural justice require that a bidder be given an opportunity to rectify a deficiency before rejection, especially when the deficiency is curable. The court quashed the rejection and directed the Technical Evaluation Committee to reconsider the petitioner's technical bid after giving the petitioner an opportunity to submit a valid registration certificate or explain the existing one. The court also directed that the tender process be completed expeditiously.
Headnote
A) Constitutional Law - Writ Jurisdiction - Article 226 of Constitution of India - Tender Process - The petitioner challenged rejection of technical bid in a tender for handling and transport contractor. The court held that the Technical Evaluation Committee must provide an opportunity to cure deficiencies before rejecting a bid, as per principles of natural justice. The rejection was quashed and the committee was directed to reconsider the bid after giving the petitioner a chance to rectify the deficiency. (Paras 1-10) B) Administrative Law - Natural Justice - Opportunity of Hearing - Tender Evaluation - The court held that even in tender matters, principles of natural justice require that a bidder be given an opportunity to explain or cure a deficiency before rejection. The failure to do so renders the decision arbitrary and liable to be set aside. (Paras 5-9)
Issue of Consideration
Whether the rejection of the petitioner's technical bid by the Technical Evaluation Committee without providing an opportunity to cure the alleged deficiency in documents is arbitrary and violative of principles of natural justice.
Final Decision
The court allowed the writ petition, quashed the rejection of the petitioner's technical bid, and directed the Technical Evaluation Committee to reconsider the bid after giving the petitioner an opportunity to submit a valid registration certificate or explain the existing one. The tender process was directed to be completed expeditiously.
Law Points
- Principles of natural justice
- opportunity to cure deficiency
- tender evaluation
- technical bid rejection
- Article 226 of Constitution of India
