Case Note & Summary
The petitioners, Homa Engineering Works and its partner, challenged the decision of Oil & Natural Gas Corporation Limited (ONGC) to consider HAL Offshore Limited as a qualified bidder and to declare it as the L-1 bidder for a tender for revamp of safety system at Neelam and Heera Well-head platforms. The tender required a DCP Skid Fire Firing System 150 Kg capacity for offshore installation. The petitioners argued that respondent No.3 failed to satisfy the eligibility criteria, specifically clause 2.3.1 requiring the system to be listed by Underwriters Laboratory (UL) or Factory Mutual (FM). ONGC permitted respondent No.3 to give an undertaking to comply with the technical specifications before supplies. The court examined the tender conditions and found that clause 2.3.1 did not require the listing to be submitted at the time of bid; it only required the contractor to supply a system of the type listed. The court held that ONGC's decision to allow an undertaking was not arbitrary or mala fide, and that the petitioners had not demonstrated any violation of the tender conditions. The petition was dismissed.
Headnote
A) Tender Law - Eligibility Criteria - Relaxation of Technical Specifications - The court considered whether ONGC could allow a bidder to satisfy technical eligibility criteria by an undertaking to comply later. Held that the tender conditions did not expressly prohibit such relaxation, and the decision was not arbitrary or mala fide. (Paras 1-4) B) Administrative Law - Judicial Review - Tender Matters - The court reiterated that in tender matters, the court's interference is limited to cases of arbitrariness, mala fides, or violation of statutory provisions. The decision of ONGC was found to be reasonable and within its discretion. (Paras 1-4)
Issue of Consideration
Whether the first respondent's decision to consider respondent No.3 as a qualified bidder and to permit it to satisfy the bid eligibility criteria by giving an undertaking to comply with technical specifications before supplies are made is arbitrary, mala fide, or contrary to the tender conditions.
Final Decision
The petition is dismissed. The court found no arbitrariness or mala fides in ONGC's decision to allow respondent No.3 to give an undertaking to comply with technical specifications before supplies.
Law Points
- Tender evaluation
- eligibility criteria
- relaxation of technical specifications
- judicial review of administrative decisions
- non-arbitrariness
