Case Note & Summary
The petitioner, NEC Technologies India Pvt. Ltd., challenged the decision of respondent No.1, Shivamogga Smart City Limited, to award a tender to respondent No.2, Bharat Electronics Limited, for a smart city project. The petitioner contended that the commercial bid of respondent No.2 contained material deviations from the tender terms and was therefore non-responsive. The High Court of Karnataka, after hearing the parties, dismissed the writ petition. The court held that the tender committee's evaluation was reasonable and that the alleged deviations were not material. It emphasized that the scope of judicial review in tender matters is limited to examining arbitrariness or mala fides, and the court cannot substitute its own judgment for that of the expert committee. The petition was dismissed with no order as to costs.
Headnote
A) Tender Law - Commercial Bid Responsiveness - Material Deviation - The court examined whether the commercial bid of respondent No.2 contained material deviations from the tender conditions. It held that the evaluation by the tender committee was based on a reasonable interpretation of the tender terms and that the deviations alleged by the petitioner were not material. The court declined to interfere under Article 226, as the decision was not arbitrary or perverse. (Paras 2-3) B) Constitutional Law - Judicial Review - Tender Matters - Scope of Interference - The court reiterated that in tender matters, the High Court's jurisdiction under Article 226 is limited to examining whether the decision-making process is arbitrary, irrational, or mala fide. It does not sit as an appellate authority over the tender committee's technical evaluation. (Para 3)
Issue of Consideration
Whether the commercial bid of respondent No.2 contained material deviations from the tender terms, rendering it non-responsive, and whether the decision of respondent No.1 to award the contract to respondent No.2 was arbitrary or illegal.
Final Decision
Writ petition dismissed. No order as to costs.
Law Points
- Tender evaluation
- commercial bid responsiveness
- material deviation
- judicial review of tender process
- Article 226
- Article 227
