Case Note & Summary
The petitioners, Knowledge Infrastructure Systems Pvt. Ltd. and its director, filed a writ petition challenging the decision of Respondent No.1, Maharashtra Power Generation Company Ltd., a public sector undertaking, regarding the interpretation of clause 20(c) of the tender documents. The clause stated that offers would be evaluated considering the 'Exchange rate as per RBI reference rate indicative on date of opening of bid'. The respondent interpreted 'date of opening of bid' as the date of opening of the price bid (23rd May 2013), while the petitioners contended it should be the date of opening of the techno-commercial bid (16th May 2013). The difference was crucial because if 16th May was used, the petitioners' bid would be the lowest; if 23rd May was used, Respondent No.2's bid would be the lowest. The court accepted the petitioners' contention, noting that the tender documents fixed the date of opening of the techno-commercial bid but left the price bid date open, and that the petitioners' interpretation provided certainty and was consistent with correspondence between the parties. The court held that the respondents' interpretation introduced speculation without justification. The petition was allowed, and the impugned decision was quashed.
Headnote
A) Tender Law - Interpretation of Tender Clause - Exchange Rate Date - Clause 20(c) of General Terms and Conditions - The dispute pertained to whether the exchange rate for bid evaluation should be as on the date of opening of the techno-commercial bid (16th May 2013) or the price bid (23rd May 2013). The court held that the relevant date is the date of opening of the techno-commercial bid, as this interpretation is supported by the tender documents, correspondence, and provides certainty and clarity. (Paras 3-4)
Issue of Consideration
Whether the date of opening of the bid for the purpose of clause 20(c) of the tender documents is the date of opening of the techno-commercial bid or the date of opening of the price bid.
Final Decision
The petition is allowed. The impugned decision of Respondent No.1 is quashed. The relevant date for the purpose of clause 20(c) is the date of opening of the techno-commercial bid, i.e., 16th May 2013.
Law Points
- Interpretation of tender documents
- Exchange rate determination
- Date of opening of bid
- Certainty in commercial contracts
