High Court of Karnataka Dismisses Writ Petition Challenging Tender Rejection in Airport Authority of India Contract. Petitioner's bid rejected for non-submission of manufacturer's authorization as per tender conditions; court upholds strict compliance with tender requirements.

High Court: Karnataka High Court Bench: BENGALURU In Favour of Prosecution
  • 3
Judgement Image
Font size:
Print

Case Note & Summary

The petitioner, M/s. Adinath Electricals, a proprietorship firm represented by Smt. Rekha Shiyal, filed a writ petition under Articles 226 and 227 of the Constitution of India before the High Court of Karnataka at Bangalore. The petitioner sought to quash an order dated 22.09.2014 (Annexure-H) passed by the 1st respondent, the Assistant General Manager (E.E)-III of the Airport Authority of India, Mumbai, and to direct the 1st respondent not to implement the said order. The petitioner had participated in a tender proceeding pursuant to a Tender Notice dated 04.02.2014 (Annexure-B) issued by the 1st respondent for the supply of various sizes of LT cables at NAC Mumbai. The tender notice prescribed pre-qualification criteria, including that the tender must be by the manufacturer or their authorized dealer/distributor. The petitioner submitted a bid but did not submit the required manufacturer's authorization from Havells India Ltd., the manufacturer of the cables. The 1st respondent rejected the petitioner's bid on the ground of non-submission of the authorization. The petitioner challenged this rejection, arguing that the condition was not mandatory or that it had substantially complied. The court, after hearing the petitioner's counsel, Sri Vittala Shetty P., examined the tender conditions and found that the pre-qualification requirement was clear and unambiguous. The court held that in tender matters, conditions must be strictly complied with, and the rejection was proper. The court further held that under writ jurisdiction, it cannot sit as an appellate authority over tender decisions unless there is arbitrariness or mala fides, which was not established. Consequently, the writ petition was dismissed.

Headnote

A) Tender Law - Pre-qualification Criteria - Strict Compliance - Tender Notice dated 04.02.2014 required manufacturer's authorization for supply of LT cables - Petitioner failed to submit authorization from manufacturer Havells India Ltd. - Held that tender conditions must be strictly complied with and rejection was proper (Paras 1-3).

B) Constitutional Law - Writ Jurisdiction - Judicial Review of Tender Decisions - Scope of interference under Articles 226 and 227 of Constitution of India - Court held that it cannot sit as an appellate authority over tender decisions unless there is arbitrariness or mala fides - No such case made out - Petition dismissed (Paras 3-4).

Subscribe to unlock Headnote Subscribe Now

Issue of Consideration

Whether the rejection of the petitioner's tender bid for non-submission of manufacturer's authorization was valid and whether the court should interfere under writ jurisdiction.

Subscribe to unlock Issue of Consideration Subscribe Now

Final Decision

The writ petition was dismissed. The court upheld the rejection of the petitioner's tender bid and declined to interfere under Articles 226 and 227 of the Constitution of India.

Law Points

  • Tender law
  • strict compliance with tender conditions
  • pre-qualification criteria
  • judicial review of tender decisions
  • scope of writ jurisdiction under Articles 226 and 227 of Constitution of India
Subscribe to unlock Law Points Subscribe Now

Case Details

2014 LawText (KAR) (10) 23

Writ Petition No.49455/2014 (GM-TEN)

2014-10-31

A.N. Venugopala Gowda

Sri Vittala Shetty P.

M/s. Adinath Electricals

The Assistant General Manager (E.E)-III, Airport Authority of India, Mumbai; The Director General of Civil Aviation, New Delhi; The Chairman, Airport Authority of India, New Delhi; The Managing Director, Havells India Ltd., Bangalore; The AGM (Engg. Elect.), Juhu Airport, Mumbai

Subscribe to unlock Case Details (Citation, Judge, Date & more) Subscribe Now

Nature of Litigation

Writ petition challenging rejection of tender bid in a public procurement contract.

Remedy Sought

Quashing of order dated 22.09.2014 (Annexure-H) and direction to the 1st respondent not to implement the same.

Filing Reason

Petitioner's tender bid was rejected for non-submission of manufacturer's authorization as required by the tender conditions.

Issues

Whether the rejection of the petitioner's tender bid for non-submission of manufacturer's authorization was valid. Whether the court should interfere under writ jurisdiction with the tender decision.

Submissions/Arguments

Petitioner argued that the tender condition regarding manufacturer's authorization was not mandatory or that there was substantial compliance.

Ratio Decidendi

In tender matters, conditions of the tender must be strictly complied with. The court, in exercise of writ jurisdiction under Articles 226 and 227 of the Constitution of India, cannot sit as an appellate authority over tender decisions unless there is arbitrariness or mala fides. Since the petitioner failed to submit the required manufacturer's authorization, the rejection was proper and no interference was warranted.

Judgment Excerpts

To quash the order dated 22.09.2014, as at Annexure-H, issued by the 1st respondent and asking for a mandamus not to implement the same, this writ petition was filed, by the petitioner, which participated in a tender proceeding, pursuant to the Tender Notice dated 04.02.2014, as at Annexure-B, issued by the 1st respondent, in the matter of supply of various sizes of LT cables at NAC Mumbai. The pre-qualification prescribed in Annexure-B is that the tender must be by the manufacturer or their authorized dealer/distributor.

Procedural History

The petitioner filed a writ petition under Articles 226 and 227 of the Constitution of India before the High Court of Karnataka at Bangalore challenging the order dated 22.09.2014 passed by the 1st respondent. The petition came up for preliminary hearing and was dismissed on 31.10.2014.

Acts & Sections

  • Constitution of India: Articles 226, 227
Subscribe to unlock full Legal Analysis Subscribe Now
Related Judgement
High Court Bombay High Court Enhances Land Compensation for Acquired Agricultural Land in Coalfield Project — Market Value Fixed at Rs. 1,00,000 per Hectare Based on Comparable Sale Instances. The court upheld the Reference Court's valuation and granted addit...
Related Judgement
High Court High Court of Karnataka Dismisses Writ Petition Challenging Tender Rejection in Airport Authority of India Contract. Petitioner's bid rejected for non-submission of manufacturer's authorization as per tender conditions; court upholds strict complianc...