Bombay High Court Dismisses Petitioner's Challenge to Acceptance of Technical Bid in Tender for MRI Machines. Court Holds That Tender Conditions Were Complied With by Respondent No.4.

High Court: Bombay High Court Bench: BOMBAY
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Case Note & Summary

The petitioner, Philips Electronics India Ltd., filed a writ petition challenging the acceptance of the technical bid of respondent no.4, Siemens Ltd., by respondent nos.2 and 3 (Directorate of Medical Education and Research and its Director) in a tender for procurement of 3-TESLA MRI Machines. The tender followed a two-bid system: technical bid (Part I) and commercial bid (Part II). Clause 10 of the technical bid required submission of a user list of the quoted model as per Annexure IV. Clause 1 of the commercial bid prohibited quoting any price in the technical bid, and clause 3(i) required a hands-on working demonstration before opening the commercial bid. The petitioner alleged that Siemens' technical bid was invalid because it did not submit a user list of the quoted model and that the demonstration was unsatisfactory. The court examined the tender documents and the submissions. It noted that the petitioner's own bid was rejected for quoting a price in the technical bid, which was a clear violation. Regarding Siemens, the court found that the user list submitted by Siemens included installations of the quoted model, and the demonstration was conducted and found satisfactory by the tender committee. The court held that the conditions regarding user list and demonstration were essential, but the petitioner failed to prove non-compliance. The court dismissed the petition, upholding the acceptance of Siemens' technical bid.

Headnote

A) Tender Law - Essential Conditions - Strict Compliance - Tender conditions requiring submission of user list of quoted model and hands-on demonstration are essential conditions - Non-compliance renders bid invalid - Court held that the petitioner failed to establish that respondent no.4's bid did not comply with these conditions (Paras 1-10).

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Issue of Consideration

Whether the respondent no.4's technical bid was rightly accepted despite alleged non-compliance with tender conditions regarding user list and demonstration.

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Final Decision

The petition is dismissed. No order as to costs.

Law Points

  • Tender law
  • strict compliance with tender conditions
  • essential conditions
  • technical bid evaluation
  • user list requirement
  • demonstration requirement
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Case Details

2013 LawText (BOM) (08) 126

WRIT PETITION NO. 1116 OF 2013

2013-08-14

S.J.VAZIFDAR, M.S.SONAK

Mr.Janak Dwarkadas, Sr. Counsel a/w. Mr.Kunal Vajani, Mr.Ankit Virmani, Mr.Chirag Kamdar, Mr.Kunal Mimani i/b. Wadia Gandhy & Co. for the Petitioner. Mr.P.G.Lad AGP for the State, Respondent nos. 1 to 3. Mr.Venkatesh Dhond, Sr. Counsel a/w. Mr.Shailesh Mendon, Mr.Shahzad Kazi, Mr.Deepak Rai, Mr. Naishad Bhatia i/b/ Negandhi Shah & Himayatullah for the Respondent No.4.

Philips Electronics India Ltd.

The State of Maharashtra, Director of Medical Education & Research, The Director, Directorate of Medical Education & Research, Siemens Ltd.

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Nature of Litigation

Writ petition challenging acceptance of technical bid in a tender for procurement of MRI Machines.

Remedy Sought

Writ of certiorari to set aside decision accepting respondent no.4's technical bid and writ of mandamus to award contract to petitioner.

Filing Reason

Petitioner alleged that respondent no.4's technical bid was non-compliant with tender conditions regarding user list and demonstration.

Issues

Whether respondent no.4's technical bid complied with the requirement of submitting a user list of the quoted model. Whether respondent no.4's technical bid complied with the requirement of a satisfactory hands-on demonstration.

Submissions/Arguments

Petitioner argued that respondent no.4 did not submit a user list of the quoted model and that the demonstration was unsatisfactory. Respondent no.4 argued that it submitted a user list of the quoted model and the demonstration was found satisfactory by the tender committee.

Ratio Decidendi

Tender conditions that are essential must be strictly complied with. However, the petitioner failed to establish that respondent no.4's bid did not comply with the conditions regarding user list and demonstration.

Judgment Excerpts

The petitioner seeks a writ of certiorari to set aside the decision of respondent nos.2 and 3 accepting the technical bid of respondent no.4. Clause 10 of the TECHNICAL BID ( PART-I) is as under : 10.“USERS LIST:- The tenderer should submit user list of Quoted Model as per Annexure -IV:”

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High Court Bombay High Court Dismisses Petitioner's Challenge to Acceptance of Technical Bid in Tender for MRI Machines. Court Holds That Tender Conditions Were Complied With by Respondent No.4.
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