Case Note & Summary
The petitioners, three artificial persons, filed a writ petition under Article 226 of the Constitution of India challenging the action of respondent nos. 1 to 4 (State of Maharashtra and its officers) in rejecting their tender at the stage of opening of Envelope No.1. The tender was floated by the respondents for construction of approach road to a Major Bridge across Purna River and construction of slab drain on Akot Akola road. The petitioners sought to set aside the communication dated 29.06.2015 informing them about the rejection and a further direction to consider their price bid together with other price bids. The court had issued notice on 09.07.2015, and a work order was issued in favour of respondent no.5 on 21.07.2015. The petition was allowed to be amended on 20.04.2016 and on 05.05.2016, the court stayed the work order upon grievance of deliberate delay in filing reply. The learned Senior Counsel for the petitioners argued that both envelopes were to be opened together, and hence the rejection at the stage of opening of Envelope No.1 was contrary to the tender conditions. The court found merit in the submission and allowed the petition, setting aside the rejection and directing the respondents to consider the price bid of the petitioners along with other price bids.
Headnote
A) Tender Law - Rejection of Tender - Envelope Opening Procedure - Tender Conditions - The court examined whether the rejection of petitioners' tender at the stage of opening of Envelope No.1 was permissible under the tender conditions. The court held that the tender conditions required both envelopes to be opened together, and rejection without opening the price bid was arbitrary and unsustainable. (Paras 1-3)
Issue of Consideration
Whether the rejection of petitioners' tender at the stage of opening of Envelope No.1 without considering the price bid was valid and in accordance with the tender conditions.
Final Decision
Petition allowed. The communication dated 29.06.2015 rejecting petitioners' tender is set aside. Respondents are directed to consider the price bid of the petitioners along with other price bids.
Law Points
- Tender evaluation must strictly adhere to stipulated conditions
- rejection at preliminary stage without opening price bid is arbitrary
- Article 226 of Constitution of India
