Case Note & Summary
The petitioner, M/s G.H. Khandelwal, a registered partnership firm engaged in civil contracts, challenged the rejection of its technical bid in an e-tender issued by the Amravati Municipal Corporation for maintenance and repair of roads. The petitioner's bid was rejected on the ground that it did not submit a valid registration certificate under the Maharashtra Public Works Department (MPWD). The petitioner contended that the tender conditions did not mandate such a certificate as a condition for eligibility, and that the rejection was arbitrary. The court examined the tender conditions and found that the requirement of MPWD registration was not a mandatory condition for eligibility but was only a desirable qualification. The court held that the rejection was arbitrary and contrary to the tender conditions. The court also considered the petitioner's allegation of cartelisation against respondent No.4 and his father's proprietary concern but found no sufficient evidence to support the claim. The court allowed the petition, set aside the rejection of the petitioner's technical bid, and directed the respondents to consider the petitioner's bid in accordance with the tender conditions.
Headnote
A) Tender Law - Technical Bid Evaluation - Rejection of Bid - The petitioner's technical bid was rejected for non-submission of a valid MPWD registration certificate, but the tender conditions did not require such a certificate as a mandatory condition for eligibility. The court held that the rejection was arbitrary and set aside the same. (Paras 2-10) B) Tender Law - Cartelisation - Allegation of Cartelisation - The petitioner alleged that respondent No.4 and his father's proprietary concern constituted cartelisation. The court did not find sufficient evidence to support this claim and declined to declare it as cartelisation. (Paras 11-15) C) Tender Law - Judicial Review - Scope of Interference - The court reiterated that judicial review in tender matters is limited to examining whether the decision-making process is arbitrary, irrational, or mala fide. In this case, the rejection was found to be arbitrary, warranting interference. (Paras 16-20)
Issue of Consideration
Whether the rejection of the petitioner's technical bid by the Amravati Municipal Corporation on the ground of non-submission of a valid registration certificate under the Maharashtra Public Works Department (MPWD) was arbitrary and contrary to the tender conditions.
Final Decision
The court allowed the petition, set aside the rejection of the petitioner's technical bid, and directed the respondents to consider the petitioner's bid in accordance with the tender conditions.
Law Points
- Tender law
- Technical bid evaluation
- Arbitrariness in rejection
- Non-submission of registration certificate
- Compliance with tender conditions
- Judicial review of administrative action
