Bombay High Court Allows Petition Against Disqualification in Tender Process for Construction of Civic Amenities. Petitioner's Bid Disqualified for Non-Submission of Required Documents Despite Having Submitted Them, Violating Principles of Natural Justice.

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

The petitioner, M.S. Constrotech Pvt. Ltd., filed a writ petition challenging the communication dated 28-7-2015 disqualifying its bid in response to tender notices no. 423 and 424 issued by the respondent Vidarbha Irrigation Development Corporation for construction of civic amenities to rehabilitate Village Palsoda and Village Takali Watpal under the Jigaon Project. The estimated costs were Rs. 766.192 Lacs and Rs. 753.598 Lacs respectively. The tender conditions required an average annual turnover of at least Rs. 565.20 Lacs over the past 5 years, work experience of successfully completing at least one contract of road work and building work of value not less than Rs. 226 Lacs, and experience of constructing at least one RCC building with at least 2 rooms and a constructed gutter of at least 500 meters in length. The petitioner submitted its bid, and both technical and financial bids were opened by the respondent. However, by communication dated 28-7-2015, the petitioner's bid was disqualified on the ground that the required documents were not submitted. The petitioner contended that it had submitted all required documents and that the disqualification was arbitrary. The court, after hearing the parties, found that the petitioner had indeed submitted the necessary documents and that the disqualification was not justified. The court held that the disqualification was unsustainable and directed the respondents to consider the petitioner's bid in accordance with law. The petition was allowed, and rule was made absolute with no order as to costs.

Headnote

A) Tender Law - Disqualification of Bid - Non-Submission of Documents - The petitioner's bid was disqualified on the ground that the required documents were not submitted, but the court found that the documents were indeed submitted and the disqualification was arbitrary - Held that the disqualification was unsustainable and the petitioner's bid must be considered (Paras 1-5).

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Issue of Consideration

Whether the disqualification of the petitioner's bid by the respondent Corporation was arbitrary and violative of principles of natural justice, and whether the petitioner is entitled to participate in the tender process.

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Final Decision

The petition is allowed. The communication dated 28-7-2015 disqualifying the petitioner's bid is quashed and set aside. The respondents are directed to consider the petitioner's bid in accordance with law. Rule is made absolute with no order as to costs.

Law Points

  • Tender law
  • Natural justice
  • Disqualification of bid
  • Technical bid evaluation
  • Compliance with tender conditions
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Case Details

2015 LawText (BOM) (12) 108

Writ Petition No.4623/2015

2015-12-10

Smt. Vasanti A. Naik, Prasanna B. Varale

Shri S.P. Dharmadhikar, Sr. Adv. with Shri S.A. Dharmadhikari, Adv. for petitioner; Shri A.M. Balapande, AGP for respondent No.1; Shri S.G. Jagtap, Advocate for respondent nos.2 to 5

M.S. Constrotech Pvt. Ltd.

The State of Maharashtra through the Water Resources Department, Vidarbha Irrigation Development Corporation, Chief Engineer, Superintending Engineer, Executive Engineer

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Nature of Litigation

Writ petition challenging disqualification of bid in tender process

Remedy Sought

Declaration that petitioner is entitled to participate in tender process and quashing of disqualification communication

Filing Reason

Petitioner's bid was disqualified despite submission of required documents

Issues

Whether the disqualification of the petitioner's bid was arbitrary and violative of natural justice Whether the petitioner is entitled to participate in the tender process

Submissions/Arguments

Petitioner submitted all required documents and disqualification is arbitrary Respondents argued that petitioner failed to submit required documents

Ratio Decidendi

The disqualification of a bid on the ground of non-submission of documents is unsustainable if the documents were actually submitted. The tender process must be conducted fairly and in accordance with the principles of natural justice.

Judgment Excerpts

By this petition, the petitioner seeks a declaration that the petitioner is entitled to participate in the tender process initiated by the tender notices bearing no. 423 and 424 displayed by the respondent Vidarbha Irrigation Development Corporation on its website. The petitioner has challenged the communication of the respondent dated 28-7-2015 disqualifying the bid of the petitioner.

Procedural History

The petitioner filed a writ petition in the High Court of Judicature at Bombay, Nagpur Bench, challenging the disqualification of its bid. The court heard the matter and delivered judgment on 10-12-2015.

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