Case Note & Summary
The petitioner, Bharat Biotech International Ltd, challenged the grant of a tender for supply of rabies vaccine by the Municipal Corporation of Greater Mumbai (MCGM) to respondent no.3, a distributor of respondent no.4 (a vaccine manufacturer). The tender was issued on 30 November 2011. The petitioner's main contention was that respondent no.3's bid was non-compliant because the Performance Certificate submitted was not in the prescribed proforma as required by the tender conditions. The petitioner argued that this was a mandatory condition and non-compliance should lead to rejection of the bid. The respondents, including the MCGM and the successful bidder, contended that the condition was not mandatory but directory, and that the certificate contained all necessary information. The court examined the tender documents and the certificate. It noted that the certificate, though not in the exact proforma, provided details of the supplier's past performance, including quantity supplied and period. The court held that the condition was directory and that substantial compliance was sufficient. The court also observed that the Corporation had verified the certificate and found it acceptable. On the scope of judicial review, the court reiterated that courts should not interfere with tender awards unless there is arbitrariness, mala fides, or violation of statutory provisions. The court found no such infirmity. Additionally, the court emphasized the public interest in ensuring uninterrupted supply of rabies vaccine for municipal hospitals. The petition was dismissed, and the rule was discharged with no order as to costs.
Headnote
A) Tender Law - Mandatory Conditions - Performance Certificate - The condition requiring submission of Performance Certificate in a prescribed proforma is not mandatory but directory; substantial compliance is sufficient. The court held that the certificate submitted by respondent no.3, though not in the exact proforma, contained all essential particulars and was accepted by the Corporation after due verification. (Paras 3-10) B) Judicial Review - Tender Awards - Scope - Courts should not interfere with tender awards unless there is arbitrariness, mala fides, or violation of statutory provisions. The court held that the Corporation's decision to accept the bid was reasonable and in public interest, especially given the need for uninterrupted supply of rabies vaccine. (Paras 11-15) C) Public Health - Supply of Vaccines - Duty of Municipal Corporation - The Corporation has a mandatory duty to ensure health of citizens. The court emphasized that the award of tender for rabies vaccine should not be stalled as it affects public health. (Paras 5, 15)
Issue of Consideration
Whether the Performance Certificate submitted by the successful bidder, not in the prescribed proforma, renders the bid invalid and whether the court should interfere with the tender award.
Final Decision
The petition is dismissed. Rule discharged. No order as to costs.
Law Points
- Tender law
- Mandatory vs. directory conditions
- Substantial compliance
- Judicial review of tender awards
- Public interest in health
