Bombay High Court Dismisses Petitioner's Challenge to Tender Rejection for Non-Compliance with Essential Condition. Condition requiring separate envelopes for technical and financial bids is mandatory and non-compliance justifies rejection.

High Court: Bombay High Court Bench: NAGPUR In Favour of Prosecution
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Case Note & Summary

The petitioner, M/s. Aditya Construction Company (JV), challenged the rejection of its bid by respondent authorities in response to a tender notice for cement concrete road work on National Highway No. 69. The tender document contained Condition No. 7.2, which required bidders to submit their technical and financial bids in separate envelopes. The petitioner submitted both bids in a single envelope, leading to rejection. The court examined whether this condition was essential and whether the rejection was justified. The court noted that the condition was clearly stated and was intended to ensure transparency and prevent manipulation. The petitioner's argument that the condition was merely procedural was rejected. The court held that the condition was mandatory and non-compliance warranted rejection. The petition was dismissed, upholding the rejection.

Headnote

A) Tender Law - Essential Condition - Mandatory Compliance - Condition No. 7.2 of Tender Document - The condition requiring submission of technical and financial bids in separate envelopes was an essential condition of the tender. The petitioner's failure to comply by submitting both bids in a single envelope justified rejection. The court held that such conditions are mandatory and non-compliance cannot be condoned as it affects the fairness and transparency of the bidding process (Paras 2-5).

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Issue of Consideration

Whether the rejection of the petitioner's bid for non-compliance with Condition No. 7.2 of the tender document, which required separate envelopes for technical and financial bids, was valid and justified.

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Final Decision

The writ petition is dismissed. The rejection of the petitioner's bid is upheld.

Law Points

  • Tender conditions
  • Essential condition
  • Mandatory compliance
  • Non-compliance
  • Rejection of bid
  • Judicial review
  • Public interest
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Case Details

2019 LawText (BOM) (03) 318

Writ Petition No. 7314 of 2018

2019-03-06

Sunil B. Shukre, S.M. Modak

Shri S.G. Jagtap for petitioner; Shri S.Y. Deopujari, GP for respondent Nos. 1 to 4; Shri A.S. Jaiswal, Senior Advocate i/b Shri G.E. Moharir for respondent No. 5

M/s. Aditya Construction Company (JV)

State of Maharashtra, Public Works Department; Chief Engineer, Public Works Regional Division; Superintending Engineer, Public Works Circle; Executive Engineer, Public Works Division No. 1; M/s. Abhi Engg. Corporation Pvt. Ltd.; M/s. P.K. Construction; M/s. Laxmi Engineering Services Pvt. Ltd.; M/s. Musale Construction (JV)

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Nature of Litigation

Writ petition challenging rejection of bid in a public tender process.

Remedy Sought

Petitioner sought quashing of the rejection of its bid and direction to consider its bid.

Filing Reason

Petitioner's bid was rejected for non-compliance with Condition No. 7.2 of the tender document requiring separate envelopes for technical and financial bids.

Issues

Whether Condition No. 7.2 of the tender document was an essential condition? Whether the rejection of the petitioner's bid for non-compliance with Condition No. 7.2 was valid?

Submissions/Arguments

Petitioner argued that Condition No. 7.2 was not an essential condition and non-compliance was a minor irregularity. Respondents argued that Condition No. 7.2 was essential and non-compliance justified rejection.

Ratio Decidendi

Condition No. 7.2 of the tender document requiring separate envelopes for technical and financial bids is an essential condition. Non-compliance with such a condition cannot be condoned as it undermines the fairness and transparency of the bidding process. The rejection of the bid was valid.

Judgment Excerpts

Considering the facts admitted, as regards the issue involved in this petition, we do not find it necessary to reproduce entire facts of the case. It was one of the essential conditions of the bidding document (see condition No. 7.2) that offer in envelope No. 1 and envelope No. 2 should be separate. The petitioner did not comply with this condition and submitted both the bids in one envelope. We find that the condition was an essential condition and non-compliance with it justified rejection.

Procedural History

The petitioner filed a writ petition before the High Court of Judicature at Bombay, Nagpur Bench, challenging the rejection of its bid by the respondent authorities. The petition was heard and finally disposed of on March 6, 2019.

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High Court Bombay High Court Dismisses Petitioner's Challenge to Tender Rejection for Non-Compliance with Essential Condition. Condition requiring separate envelopes for technical and financial bids is mandatory and non-compliance justifies rejection.
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