Case Note & Summary
The petitioner, BEML Limited, a Central Public Sector Undertaking, challenged the decision of respondent no.1, Nagpur Metro Rail Corporation Limited (NMRCL), dated 29th September 2016, whereby the petitioner was held disqualified in the tender for design, manufacture, supply, testing, commissioning of Passenger Rolling Stock (Electrical Multiple Units) and Training of Personnel. Respondent no.1 had issued a tender notice on 25.1.2016. In response, three bidders submitted bids. In the technical bid, the petitioner was found disqualified, leaving only the Consortium of Titagarh Firema Adler S.P.A. and respondent no.2 (CRRC Corporation Limited) in the fray. In the financial bid opened on 29th September 2016, respondent no.2 quoted Rs. 851 Crores, while the Consortium quoted Rs. 852 Crores. The Consortium had earlier filed Writ Petition No.5818 of 2016, which was dismissed by this Court on 5.10.2016. The petitioner then filed the present petition. The court considered the limited scope of judicial review in tender matters, noting that the decision of the Tender Evaluation Committee, approved by the Director Level Tender Committee, was not arbitrary. The court dismissed the petition, upholding the disqualification.
Headnote
A) Tender Law - Judicial Review - Scope of Interference - The court's power to interfere in tender matters is limited to cases of arbitrariness, mala fides, or bias; the court cannot substitute its own view for that of the expert tender evaluation committee. (Paras 1-4)
B) Tender Law - Eligibility Criteria - Disqualification - The petitioner was disqualified for not meeting the eligibility criteria specified in the tender conditions; the court found no arbitrariness in the decision of the Tender Evaluation Committee. (Paras 2-4)
Issue of Consideration
Whether the decision of respondent no.1 disqualifying the petitioner from the tender process is arbitrary and liable to be set aside.
Final Decision
The petition is dismissed. Rule is discharged. No order as to costs.
Law Points
- Tender law
- Judicial review of tender decisions
- Scope of interference in contractual matters
- Eligibility criteria in public procurement
Case Details
2016 LawText (BOM) (10) 169
Writ Petition No.6116 of 2016
B.R. Gavai, V.M. Deshpande
Mr.K.N.Shukul for petitioner; Mr.S.K.Mishra, Senior Counsel with Mr.Kastubh Deogade for respondent no.1; Mr.Sunil Manohar, Senior Counsel with Mr.Akshay Naik for respondent no.2
M/s. Nagpur Metro Rail Corporation Limited (NMRCL) and CRRC Corporation Limited
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Nature of Litigation
Writ petition challenging disqualification in a tender process.
Remedy Sought
Petitioner sought to set aside the decision of respondent no.1 disqualifying it from the tender.
Filing Reason
Petitioner was disqualified in the technical bid for the tender for design, manufacture, supply, testing, commissioning of Passenger Rolling Stock and Training of Personnel.
Previous Decisions
Consortium of Titagarh Firema Adler S.P.A. had filed Writ Petition No.5818 of 2016 which was dismissed by this Court on 5.10.2016.
Issues
Whether the decision of respondent no.1 disqualifying the petitioner from the tender process is arbitrary and liable to be set aside.
Submissions/Arguments
Petitioner argued that the disqualification was arbitrary.
Respondents argued that the decision was taken by the Tender Evaluation Committee and approved by the Director Level Tender Committee, and was not arbitrary.
Ratio Decidendi
The court's power to interfere in tender matters is limited to cases of arbitrariness, mala fides, or bias; the court cannot substitute its own view for that of the expert tender evaluation committee.
Judgment Excerpts
This petition challenges the decision of respondent no.1, dated 29th September, 2006 vide which the petitioner has been held to be disqualified by respondent no.1 in the tender for the work of design, manufacture, supply, testing, commissioning of Passenger Rolling Stock (Electrical Multiple Units) and Training of Personnel.
This Court, vide Judgment and Order dt.5.10.2016, declined to interfere with the decision taken by Tender Evaluation Committee and approved by the Director Level Tender Committee.
Procedural History
Tender notice issued on 25.1.2016. Technical bid evaluation disqualified petitioner. Financial bid opened on 29.9.2016. Consortium filed WP 5818/2016 dismissed on 5.10.2016. Petitioner filed present WP 6116/2016. Heard and dismissed on 25.10.2016.
