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2006 DIGILAW 683 (PAT)

Vijay Raj Mewar Construction Company Private Limited v. State of Bihar

2006-08-07

NAVANITI PRASAD SINGH

body2006
ORDER : This case is an illustrative case where State, oblivious of its constitutional obligation to the citizens, proceeds in its sweet time and in its own sweet will leaving citizens to the mercy of mother nature. 2. For erecting flood embankments for protection of life and property from flood, tenders were floated. The tenders had to be filed in two separate sections. First, a technical bid after evaluation of which in respect of successful bidders, their financial bid was then to be opened and after evaluating them, the final acceptance had to be issued followed by execution of formal agreement and issuance of work ORDER :. It may be mentioned that this is a centrally sponsored scheme and the work, it goes without saying, is urgent. The State has filed counter affidavit. 3. Tenders were, accordingly, issued. Various parties filed their technical and financial bids. As required, first the technical bids were opened. It is not disputed that only two tenderers, in respect of the tender in question, qualified in the technical bid. It is not disputed that the tender of one Mother India Constructions Private Limited was found technically unfit and, as such, his technical bid was rejected as being ineligible. 4. After the technical bids had been sorted out, the financial bids were opened and ultimately, it is not disputed, that petitioner was selected for award of the contract. It is not disputed that ORDER :s were issued to the appropriate authorities to enter into formal contract with petitioner. It is at this stage suddenly a decision was taken and the ORDER :selecting the petitioner was set aside and the said private contractor, that is Mother India Constructions Private Limited, was directed to be considered for technical bid and consequently for the financial bid as well. In effect, the entire tender process, the decision making process, was turned upside down. This is what has brought the petitioner to this Court. 5. On behalf of the petitioner, it has been submitted that once when the technical bid of the said Mother India Constructions Private Limited was found to be bad and ineligible then he was disqualified from being considered in the financial bid sector. It is submitted that apparently there is no legal and valid reason for setting aside the decision of the Tender Committee rejecting the technical bid of the said Company. It is submitted that apparently there is no legal and valid reason for setting aside the decision of the Tender Committee rejecting the technical bid of the said Company. The learned State Counsel has supported the action of the State with reference to the pleadings in the counter affidavit. The learned State Counsel has fairly conceded, with reference to the statement made in the counter affidavit that the Department on being represented by the said private contractor, constituted a flying squad to verify the decision of the Tender Committee in rejecting the technical bid of the private contractor. It is stated in paragraph5 sub-paragraph (vi) (at page-8 of counter affidavit) "The flying squad found the decision of the Tender Committee proper and documented on basis of norms laid down in the NIT and PWD Code". This was not enough to drop any further action because in the very next line of the said counter affidavit, it is stated thus "But the decision of the flying squad was based on technical aspects of the case, legal implications and State interest was not looked into". What is the legal implication and the State interest is not disclosed. It is only a mambo jumbo expression without any factual expression. 6. It is well settled that once notice inviting tender has been issued laying down eligibility, conditions and criteria pursuant to which various persons have acted and selections made, the criteria cannot, thereafter, be relaxed or changed. The selection process has to be completed on basis of advertised criteria. Here, in the present case, it is not disputed that there was nothing wrong, illegal or arbitrary in the decision of the Tender Committee in rejecting the technical bid of the private contractor, namely, M/s Mother India Constructions Private Limited. On repeated query of this Court as to what was legal implication and State interest all that could be disclosed was that if the financial bid of the private contractor was allowed to be taken into account then it would be seen that the State would save money. I am afraid this is an absurd situation. In the process of tender, there is a sequence of events which has reason and is rational. One cannot be permitted to open financial bid first and then the technical bid. I am afraid this is an absurd situation. In the process of tender, there is a sequence of events which has reason and is rational. One cannot be permitted to open financial bid first and then the technical bid. The technical bid is to decide about technical eligibility of a person and only once he is found technically eligible, his financial bid would be taken into consideration. Neither the notice inviting tenders nor the law envisages the reverse path. The ends do not justify the means. It is not disputed that the State first directed that the financial bid of the said private contractor be considered but when it was pointed out by the Department that the financial bid had been returned as he had been found to be ineligible in the technical bid, the State by the ORDER :dated 25.3.2006 took a decision to cancel the tender and issue fresh tender. This is ultimately the ORDER :which is impugned. 7. Having noticed the controversy above and having noticed that the entire decision making process leading to the impugned ORDER :dated 25.3.2006 is unsustainable and is, thus, violative of Article 14 of the Constitution, I am left with no option but to quash the aforesaid impugned ORDER :dated 25.3.2006 being the communication of the Joint Secretary, Government of Bihar to the Chief Engineer, Water Resources Department, Siwan. 8. In the result, this writ application is allowed and the Department would proceed as if the impugned ORDER :was never issued and the tender, as accepted, continues to be valid.