Bombay High Court Dismisses Petition Challenging Tender Process for Coal Supply. The court held that the evaluation committee's decision to open price bids was within its discretion and not vitiated by mala fides.

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

The petitioners, Knowledge Infrastructure Systems Private Limited and its director, challenged a tender process issued by Maharashtra Power Generation Company Ltd. (Respondent No.1) for supply of coal. The tender was for four power stations and bids were submitted by multiple parties including MSTC Limited (Respondent No.2). The petitioners alleged that the opening of price bids was done in inexplicable haste, indicating mala fides to favour certain bidders. They relied on clause 14 of the tender which stated that the evaluation committee would first check EMD and tender fee. The court examined the submissions and found that the evaluation committee had the discretion to open price bids after techno-commercial evaluation. The court held that the haste alleged was not established and dismissed the petition.

Headnote

A) Tender Law - Judicial Review - Mala Fides - Haste - The court considered whether the opening of price bids in a tender process was done in inexplicable haste indicating mala fides. The court held that the evaluation committee had discretion to open price bids after techno-commercial evaluation and that the haste alleged was not established. (Paras 4-5)

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Issue of Consideration

Whether the opening of price bids in a tender process was done in inexplicable haste indicating mala fides, thereby vitiating the entire tender process.

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Final Decision

The court dismissed the writ petition, holding that the evaluation committee had discretion to open price bids and the haste alleged was not established.

Law Points

  • Tender process
  • Judicial review
  • Mala fides
  • Haste
  • Discretion of evaluation committee
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Case Details

2014:BHC-OS:8492-DB

Writ Petition Lod.No.2003 of 2014

2014-08-14

S.J.Vazifdar, A.K.Menon

2014:BHC-OS:8492-DB

Mr.Janak Dwarkadas, Senior Advocate with Mr.Venkatesh Dhond, Senior Advocate with Ninad Laud, Mr.Lalan Gupta, Mr.C.D.Mehta i/b. M/s.Dhruve Liladhar & Company for Petitioners. Mr.Gaurav Joshi, Senior Advocate with Mr.Kiran Gandhi i/b. Little & Co., for Respondent No.1. Dr.Virendra Tulzapurkar, Senior Advocate with Sandeep Parikh and Ms.Pooja Karadia i/b. Fox Mandal Partner for Respondent No.2.

Knowledge Infrastructure Systems Private Limited and Anr.

Maharashtra Power Generation Company Ltd. and Anr.

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Nature of Litigation

Writ petition challenging tender process for supply of coal.

Remedy Sought

Petitioners sought to challenge the entire tender process or alternatively reject the second respondent's bid for Bhusawal and Koradi power stations.

Filing Reason

Alleged that opening of price bids was done in inexplicable haste indicating mala fides.

Issues

Whether the opening of price bids was done in inexplicable haste indicating mala fides, vitiating the tender process.

Submissions/Arguments

Petitioners argued that the opening of price bids was done in inexplicable haste, indicating mala fides to favour certain bidders, relying on clause 14 of the tender.

Ratio Decidendi

The evaluation committee has discretion to open price bids after techno-commercial evaluation; mere haste does not establish mala fides in a tender process.

Judgment Excerpts

Mr.Dwarkadas, the learned Senior Counsel appearing on behalf of the petitioners, firstly submitted that the opening of the price bids was done in inexplicable haste, indicating if not establishing mala-fides viz. to favour certain bidders. In support of this contention Mr.Dwarkadas relied upon clause 14 of the tender which reads as under:-

Procedural History

The petition was filed challenging the tender process initiated by notification dated 27th May 2014. Techno-commercial bids were opened on 15th July 2014. The court heard the matter and dismissed the petition on 14th August 2014.

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High Court Bombay High Court Dismisses Petition Challenging Tender Process for Coal Supply. The court held that the evaluation committee's decision to open price bids was within its discretion and not vitiated by mala fides.
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