Case Note & Summary
The petitioner, M/s Ravindra Narayan Choudhari, a proprietorship firm, challenged the rejection of its tender submitted to Rashtriya Chemicals and Fertilizers Ltd. (RCF), a Government of India Undertaking, for handling and transportation of fertilizers at Dondaicha Rake point. The tender notice was published, a pre-bid meeting held on 22.11.2016, and tenders were to be submitted by 30.11.2016. The petitioner submitted its tender with all necessary accompaniments. The respondents sought additional documents, which the petitioner provided. However, by an order dated 17.06.2017, the respondents rejected the tender on technical grounds, specifically for non-submission of the PAN card of the proprietor. The petitioner argued that the PAN card was not a mandatory condition in the tender notice and that the rejection was arbitrary. The respondents contended that the PAN card was required as per the tender conditions. The court examined the tender notice and found that the requirement of PAN card was not listed as a mandatory condition. The court held that the respondents could not reject the tender on a ground not specified as mandatory in the tender notice, as it would be arbitrary and violative of Article 14 of the Constitution. The court allowed the writ petition, quashed the rejection order, and directed the respondents to reconsider the petitioner's tender without insisting on the PAN card condition. The court also directed the respondents to complete the process within four weeks.
Headnote
A) Constitutional Law - Writ of Mandamus - Article 226 - Tender Rejection - Mandatory Conditions - The court considered whether rejection of a tender for non-submission of a document not listed as a mandatory condition in the tender notice is arbitrary. Held that the respondents cannot reject a tender on a ground not specified as mandatory in the tender notice, as it would be arbitrary and violative of Article 14. (Paras 1-10) B) Contract Law - Tender Process - Interpretation of Tender Conditions - The court examined the tender notice and found that the requirement of PAN card was not listed as a mandatory condition. Held that the respondents acted arbitrarily by insisting on a condition not mentioned in the tender notice, and the rejection was unsustainable. (Paras 5-10)
Issue of Consideration
Whether the rejection of the petitioner's tender on the ground of non-submission of PAN card of the proprietor, which was not a mandatory condition in the tender notice, is arbitrary and violative of Article 14 of the Constitution of India.
Final Decision
The court allowed the writ petition, quashed the order dated 17.06.2017 rejecting the petitioner's tender, and directed the respondents to reconsider the petitioner's tender without insisting on the PAN card condition. The respondents were directed to complete the process within four weeks.
Law Points
- Writ of Mandamus
- Article 226
- Article 227
- Tender rejection
- Technical grounds
- Mandatory conditions
- Irrelevant conditions
- Government undertaking
- Public interest
