TAHAL CONSULTING ENGINEERS LTD Vs. STATE OF JHARKHAND
LAWS(JHAR)-2019-3-94
HIGH COURT OF JHARKHAND
Decided on March 14,2019

Tahal Consulting Engineers Ltd Appellant
VERSUS
STATE OF JHARKHAND Respondents

JUDGEMENT

Sujit Narayan Prasad, J. - (1.) This writ petition is under Article 226 of the Constitution of India, whereby and whereunder the following reliefs have been sought for:- (a) For issuance of appropriate writ in the nature of certiorari for quashing of the Tender Summary Report (Annexure-7) as uploaded on the website of the Jharkhand Tender in so far as it relates to the bid of the Petitioner being declared non-responsive at the scrutiny stage and the bids of the Private Respondent Nos. 5 & 6 being declared technically responsive though they did not fulfill the terms and conditions and experience/expertise as required in terms of the Bid Documents for N.I.T. No. JUIDCO/Smart City Project/Ranchi/1982/2018/191 ("the Tender") (b) The petitioner further prays for issuance of appropriate writ in the nature of certiorari for quashing of the decisions of the Tender Committee dated 20.02.2019 (Annexure-5), whereby and whereunder the Bid of the Petitioner has been declared as non- responsive at the scrutiny stage although the petitioner has submitted the Bid Security as required in the Tender whereas adequate opportunity was given by seeking clarifications from the rest bidders; (c) The petitioner further prays for issuance of appropriate writ in the nature of certiorari for quashing of the decisions of the Tender Committee dated 25.02.2019 (Annexure-6) whereby and whereunder the Bids of the Respondent Nos. 5 & 6 have been declared as technically responsive although both the Respondents do not meet the technical qualification criteria as specified in the Tender; (d) The petitioner further prays for issuance of appropriate writ in the nature of certiorari for quashing of the decisions of the Tender Committee dated 25.02.2019 (Annexure-6), whereby the Tender Committee has recommended opening the financial bids of the Respondent Nos. 5 & 6 although their technical bids ought to have been declared as technically non-responsive being not meeting the technical qualification criteria of the Tender; (e) The petitioner further prays for issuance of an appropriate writ commanding upon the respondents to declare the Bid of the Petitioner as responsive as the Petitioner has duly submitted the bid security as required in the Tender and otherwise fulfills and meets the requisite Technical Specification and Financial Resources in terms of the Tender to successfully execute the work, however, has been purposely and deliberately declared non-responsive & thereby ousted from the Tender process, so as to accommodate and Award the work to the Respondent No. 5; (f) The Petitioner further prays for issuance of an appropriate writ, order of direction commanding upon the respondents and showing them cause as to how and under what circumstances the technical qualification criteria as required under "the tender" has been relaxed in violation of the doctrine of fairness and reasonableness and the Tender and the non-responsive Bids of the Respondent Nos. 5 and 6 have been declared as responsive; (g) The petitioner particularly prays for issuance of an appropriate writ, order or direction initiating an enquiry into the collusion of the Respondents no. 2 to 4 with the Respondent No. 5 & 6.
(2.) The brief facts of the case, as per the pleading made in this writ petition are that the petitioner being a lead partner i.e. M/s Tahal Consulting Engineers Ltd., which is a global Company in the business of providing all engineering and execution services in the fields of water, waste water, irrigation, rural agricultural development and solid waste management, Transmission of Oil & Gas to its customers worldwide, while the second partner of the petitioner, namely, M/s. Raj Corporation Ltd is also well-established Company in the field of electrical components of infrastructure projects and has successfully executed several works. The Jharkhand Urban Infrastructure Development Company Ltd. (Respondent No. 2) has issued a Notice Inviting Tender on 31.12.2018 for the work of "Integrated Infrastructure Development Works, which include Transport & Circulation (Road), Road Side Plantation and Arboriculture, Storm Water, Drainage, Water Supply & Recycle Water System, Water System, Waste Water System, Power Infrastructure, Smart Street Lighting System and Land Development in ABD area of Ranchi Smart City in the State of Jharkhand on EPC basic, followed by performance-based O & M of the Infrastructure (excluding Power Infrastructure) component created for a period of 5 years including Defect Liability Period of 1 year. As per Clause 4.4.1 of the Instruction to Bidders (ITB) of the Tender, a joint venture of more than one contractor could also participate in the Tender. Further as per Clause 4.4.4 laid down the eligibility criteria for Joint Venture, wherein, the Joint Venture was required to collectively satisfy the technical and financial criteria, specified in the Tender. In order to participate in the Bid, a Joint Venture has been formed in between M/s Tahal Consulting Engineers Ltd. with M/s. Raj Corporation Limited by virtue of Joint Venture Agreement, dated 05.02.2019, wherein, M/s Tahal Consulting Engineers Ltd. had a share of 75 per cent and was the Lead Partner, whereas, M/s. Raj Construction Limited being the Second Partner had share of 25 per cent. The petitioner fulfilling the technical experience and the financial capabilities requirements as specified in the Tender had participated in the Bid and submitted its Bid on 08.02.2019 alongwith the Bid Security of Rs.5,14,60,000/- in the form of Fixed Deposit created in favour of JUIDCO. The FDR was valid for a period of 183 days. Alongwith the petitioner, other Bidders have participated, namely, (i) M/s Larsen & Toubro Ltd., Chennai, (ii) M/s Simplex Infrastructures Ltd., Kolkata the respondent nos. 5 and 6 respectively, (iii) M/s. KMV Projects Ltd., Hyderabad and M/s. Tahal Consulting Engineers Ltd., Israel and Raj Corporation Limited, U.P. (JV). The Bid of the petitioner has been rejected by the Scrutiny Committee on the ground of non-fulfillment of the condition, as stipulated under clause No. 4.4.3 of the ITB, which pertains to Bid Security and performance guarantee, which will be furnished by the Lead Partner and the Joint Venture/Consortium Partners out of their accounts in proportion to their participation in Joint Ventures and accepted Bid Documents of the respondent nos. 5 and 6, therefore, the said decision of the Scrutiny Committee has been assailed by way of the instant writ petition by the petitioner.
(3.) The following grounds have been urged by the petitioner:- (i) The condition stipulated under Clause 4.4.3 of the ITB is not a mandatory condition warranting the authority to reject the Bid Document venture before the technical bid. (ii) The condition stipulated in the bid is to be adhered to strictly, but, it is to be seen as to whether the condition, basing upon which the candidature of the petitioner has been rejected, is essentially to be fulfilled or if it is curable in nature, can it be rejected on that ground. (iii) The petitioner is still ready to comply with the aforesaid condition, as stipulated under Clause 4.4.3 of the ITB. (iv) The Respondent nos. 5 and 6 has been shown premium and relaxation has been awarded, although the LOI has been issued in favour of the respondent no. 5, who has also not fulfilled the condition stipulated in the ITB. The petitioner has relied upon the following judgments:- (i) B.S.N. Joshi & Sons Ltd. Vs. Nair Coal Services Ltd. and Others, 2006 11 SCC 548; (ii) Rashmi Metaliks Limited and another Vs. Kolkata Metropolitan Development Authority and Others, 2013 10 SCC 95 and (iii) (2017) 5 Supreme Today, 184.;


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