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Larsen And Toubro Limited vs Mumbai Metropolitan Region ...
2023 Latest Caselaw 4740 Bom

Citation : 2023 Latest Caselaw 4740 Bom
Judgement Date : 4 May, 2023

Bombay High Court
Larsen And Toubro Limited vs Mumbai Metropolitan Region ... on 4 May, 2023
Bench: R.D. Dhanuka, Gauri Godse
2023:BHC-OS:4038-DB




                                                                           908.12017.23 wpl.doc




    Iresh
                           IN THE HIGH COURT OF JUDICATURE AT BOMBAY
                                 ORDINARY ORIGINAL CIVIL JURISDICTION
                                    WRIT PETITION (L) NO. 12017 OF 2023
                                                   AND
                                    WRIT PETITION (L) NO. 12023 OF 2023

                 Larsen & Tubro Limited, a company
                 incorporated in India, and having its
                 registered office at L&T House, Ballard
                 Estate, Mumbai - 400 001.                                       ....Petitioner

                         V/s.

                 1. Mumbai Metropolitan Region Development
                 Authority (MMRDA), a statutory body under
                 the Mumbai Metropolitan Development Act,
                 1974, having its office at Plot No. 14 & 15,
                 MMRDA New Building, BKC, Bandra (E)

                 2. Engineer-in-Chief, Mumbai Metropolitan
                 Region Development Authority (MMRDA),
                 having his office at 2nd Floor, New MMRDA
                 Building, BKC, Bandra (E), Mumbai-
                 400051.
                 Email ID:
                 [email protected]

                 3. Executive Engineer, Mumbai Metropolitan
                 Region Development Authority (MMRDA),
                 having his office at Plot No. 14 & 15, MMRDA
                 New Building, 5th Floor, BKC, Bandra (E),
                 Mumbai - 400 051. Email ID:                               ....Respondents
                 [email protected]


                 Mr. Janak Dwarkadas, Senior Advocate along with Mr. Chirag
                 Kamdar and Mr. Indranil Deshmukh, Ms. Gathi Prakash, Mr. Darshan
                 Furia and Ms. Arushi Poddar i/b M/s. Cyril Amarchand Majngaldas,


                                                 Page 1 of 25




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 for the Petitioner in WPL 12017/2023 Advocate for the Petitioner

 Mr. Janak Dwarkadas, Senior Advocate along with Mr. Chirag
 Kamdar and Mr. Indranil Deshmukh, Ms. Gathi Prakash, Ms. Nidhi
 Asher and Ms. Priyanka Desai i/b M/s. Cyril Amarchand Mangaldas
 for the Petitioner in WPL 12023/2023 Advocate for the Petitioner

 Dr. Milind Sathe, Senior Advocate along with Mr. Saket Mone, Mr.
 Shrey Shah, Mr.Abhishek Salion, Mr. Devansh Shah i/b M/s. Vidhi
 Partners, Advocate for Respondent No. 1-MMRDA in both Petition.

                                   CORAM : R. D. DHANUKA &
                                           GAURI GODSE, JJ.

DATED : 4th MAY, 2023.

ORAL JUDGMENT:

1. Rule. Dr. Sathe, learned senior counsel waives service for

Respondent - MMRDA in both the matters. By consent of the parties,

both the Petitions were heard together and are being disposed of by

a common order.

2. Petitioners in Writ Petition (L) No. 12023 of 2023 have prayed

for Writ of Mandamus against the Respondents to declare the

Petitioner as the lowest bidder or L-1 bidder in the tender for the

project i.e. Package - 2.

3. In so far as Writ Petition (L) No. 12017 of 2023 is concerned,

the Petitioner has prayed for Writ of Certiorari for quashing and

setting aside the rejection of the Petitioner's technical bid submitted

to Respondent No. 1 in respect of proposal for Package 1. In the

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alternative, Petitioner has prayed for Writ of Mandamus against the

Respondents to withdraw email dated 25th April, 2023 communicating

rejection of Petitioner's technical bid submitted on 6 th April 2023.

Petitioner has also prayed for a Writ of Mandamus against the

Respondent to treat the technical bid submitted by the Petitioner on

6th April 2023 as eligible and open and consider Petitioner's financial

bid submitted on 6th April 2023 in response to said tender.

FACTS IN WRIT PETITION (L) NO. 12017 OF 2023

4. On 14th January 2023, Respondents issued a request for

proposal for Package 1 & 2 of the project in question. On 16 th March

2023, a common set of deviations for Package 1 and a common set

of deviations for Package 2 were issued by Respondent No. 1. On 6 th

April 2023, Petitioner submitted its technical bids for both the

Packages. On 19th April 2023, Respondent No. 1 issued two letters

both dated 19th April, 2023 for Package 1 and 2 respectively to the

Petitioner inter alia requesting for additional documents to

demonstrate different project experience to be qualified for both the

packages. On 21st April 2023, Petitioner responded to the said letter

and clarified that it has Doha Metro Project experience to establish

its technical capacity criteria.

5. On 24th April 2023, Respondent No. 2 requested the Petitioner

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to remain present at the time of opening of financial bid on 25 th April

2023 at 10.00 a.m. It is the case of the Petitioner that on 25 th April

2023, Petitioner received an E-mail claiming that the bid of the

Petitioner for tender in question had been rejected during technical

evaluation by the duly constituted committee for the reason 'Not

eligible'.

6. On 26th April 2023, the Petitioner through their Advocates

addressed a letter to the Respondents calling upon the Respondents

to forthwith withdraw the decision of rejecting the Petitioner's

technical bid for Package 1 and to treat the technical bid submitted

by the Petitioner on 6th April 2023 as eligible and open for the

financial bid for Package 1. Since the Respondents did not accept

the request of the Petitioner to withdraw the decision to reject the

Petitioner's technical bid for Package 1, the Petitioner filed Writ

Petition (L) No. 12017 of 2023. Writ Petition is resisted by the

Respondents by filing Affidavit-in-Reply.

FACTS IN WRIT PETITION (L) NO. 12023 OF 2023:

7. On 14th January 2023, Respondent No. 2 issued a 'Request

for proposal for Package - 2' of the project in question. On 6 th April

2023, Petitioner submitted its bid for the project. It is the case of the

Petitioner that on 25th April, 2023 upon visiting the e-tender portal for

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the project, Petitioner realized that it had inadvertently submitted its

bid amount inclusive of tax in the coloumn for "rate without tax" and

"rate with tax" of the price schedule. Petitioner accordingly

addressed a letter to Respondent No. 1 inter alia clarifying that the

bid price submitted by the Petitioner in column No. 12 of price

schedule is Indian Rupees 6,625,00,00,000/- which is inclusive of all

taxes and GST. On 26th April 2023, the Petitioner addressed a letter

to Respondent No. 2 contending that Respondent No. 1 had

correctly determined the Petitioner as the L1 bidder on the basis of

contract price with tax. On 27th April 2023, the Petitioner filed Writ

Petition (L) No. 12023 of 2023.

SUBMISSIONS OF THE PARTIES IN BOTH PETITIONS:

8. Mr. Dwarkadas, learned senior counsel for the Petitioner in

both the Petitions invited out attention to the documents annexed to

the petitions and the submissions made by the Respondents in the

Affidavit-in-Reply filed these Petitions. He invited our attention to

Clause 1.2.7 of Section 1 of RFP for Package 1, Clause 3.3.1 of

Section 3 for Package 1 and Clause 2.2.2.2(iii)(b) of Section 2 and

submitted that the technical capacity criteria in RFP for Package 1

does not refer the technical capacity criteria set out in the RPF for

Package -2, or vice versa. He submitted that technical capacity

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criteria set out in RFP packages are entirely independent of one

another and whether to chose to bid for either or both Packages,

subject to the qualification that Respondent No. 1 would award only

one package to one bidder.

9. It is submitted by the learned senior counsel for the Petitioner

that earlier provision, more particularly contained in Clauses 1.2.7 of

Section 1 and 3.3.1 of Section 3 was deleted. He submitted that in

view of the said deletion, of part of Clause 1.2.7 of Section 1, there

was no restriction any longer on Respondent No. 1 awarding both

Packages to one successful bidder. It is submitted by the learned

senior counsel for the Petitioner that Respondent No. 1 thereafter

issued two further common sets of deviations for Package 1 dated

24th March 2023 and 31st March 2023.

10. He submitted that on 6th April 2023, Petitioner accordingly

submitted its technical and financial bids for both Packages.

Petitioner had sufficiently met the technical capacity qualification

independently contained in both RFP's for Package 1 and 2 by virtue

of its Doha Metro Project experience where it had undertaken TBM

tunneling of 5.126 km with finished diameter of 6.17 m of value of

Indian Rupees 3,978.90 Cr. It is submitted that though the bid

submitted by the Petitioner on 6th April 2023 was responsive,

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Respondent No. 1 issued two letters both dated 19 th April 2023 to the

Petitioner for Package - 2, purporting to seek clarification and/or

informing of shortfall of documents with regard to the technical bids

submitted by the Petitioner. He submitted that the Petitioner was

called upon to submit its clarification within two days from the date of

receipt of said letter, making it clear that in case of non-availability of

documents to demonstrate the technical capacity separately for both

packages, Petitioner shall indicate which package among the two

packages should be considered for technical evaluation.

11. It is submitted by the learned senior counsel for the Petitioner

that Petitioner did not waive or accept the new condition imposed by

the Respondent No. 1 while submitting clarifications vide

communication dated 21st April 2021 that if the Petitioner was held

technically responsive for one package, then the Respondent No. 1

may consider Package - 2. He submitted that the said clarification

was without waiving the rights of the Petitioner to contend that the

Petitioner was not required to submit two separate certificates i.e.

each in respect of each Package which was the subject matter of the

tender.

12. Learned senior counsel invited our attention to E-mail dated

24th April 2023 calling upon the Petitioner to attend the financial bid

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opening on 25th April, 2023 at 10.00 a.m. He submitted that on 25 th

April 2023, Respondent No. 1 rejected the technical bid of the

Petitioner for the reason 'not eligible'. Learned senior counsel invited

our attention to the legal notice issued to the Petitioner by

Respondent No. 1.

13. It is submitted by the learned senior counsel for the Petitioner

that for the first time on 19th April 2023, Respondent No. 1 contended

that the Petitioner was required to meet technical capacity criteria

separately in respect of both the packages. He submitted that such

additional requirement could not have been imposed by Respondent

No. 1 after submission of the bid by the Petitioner on 6 th April 2023.

He submitted that under the garb of seeking clarifications,

Respondent has imposed additional conditions after closing of the

last date of submission of technical bid.

14. The next submission of the learned senior counsel is that

though under Clause 2.19 Respondents could not have opened

financial bid before expiry of 7 days from the date of rejection of

technical bid, in this case, Respondents have opened the financial

bid of successful bidder within two minutes of the opening of the

declaration of the outcome of the technical bid. Learned senior

counsel placed reliance on the Manual for Procurement of Works

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issued by the Government of India, Ministry of Finance, more

particularly Clause 5.5.2 and submitted that if Respondents would

have waited for 7 days time after opening of technical bid, the defect,

if any, in the technical bid submitted by the Petitioner could have

been rectified by the Petitioner within such period of 7 days.

15. Learned senior counsel placed reliance on the Judgment of

the Delhi High Court in the case of Supreme Infrastructure India

Limited Vs. Rail Vikas Nigam Limited and another1 and more

particularly paragraph Nos. 23, 27 and 30 and submitted that

Respondents being a public body is expected to function and

conduct itself with reasonable prudence expected of any common

man in the business and cannot be bogged down by the literal rule,

even if there be one and throw to winds the basic common sense

and shut its eyes to such obvious errors, to defeat not only the rights

of a deserving bidder, but also sacrifice public interest in the process.

He submitted that in this case, since the Respondents had imposed

the additional condition for submitting separate Work Experience

Certificates in respect of both the packages which was imposed after

last date of closing of the technical bid, Respondents could not have

rejected the technical bid of the Petitioner in so far as Package 1 is

1 2012 SCC OnLine Del 6176

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concerned on the ground that the Petitioner had not submitted

separate technical capacity certificates in respect of Package 1.

16. Dr. Sathe, learned senior counsel for the Respondents on the

other hand invited our attention to various provisions of the tender

and submitted that after rejection of technical bid of the Petitioner,

Respondent No. 1 had opened the financial bid. Megha Engineering

and Infrastructure Limited was only bidder whose technical bid was

found responsive and thus, the financial bid of said bidder was open.

The said financial bid of MEIL was thereafter recommended as the

said successful bidder for further action. He submitted that said MEIL

has not been impleaded as party Respondent to the Petition though

is necessary party to the Petition.

17. It is submitted that any adverse order if passed by this Court in

the Petition filed by the Petitioner challenging the rejection of

technical bid of the Petitioner and opening of financial bid, the said

successful bidder i.e. MEIL would be seriously affected.

18. The next submission of the learned senior counsel is that

admittedly prior to the date of carrying out amendment and deleting

the relevant provision, all the bidders were though allowed to

participate in the bid for both Packages, it was made clear that

successful bidder would be awarded only one out of the two contract

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and not both the contracts. He submitted that in view of the such

condition, the condition for submission of Work Experience

Certificate was held valid in respect of any such contract which

would have been awarded to the successful bidder.

19. It is submitted by the learned senior counsel that in view of the

deletion of such clause, Respondent permitted the bidders to submit

bids for both packages and modified the condition that if such bidder

is found responsive in respect of both the works, such bidder would

be awarded both the works. The condition of submission of Work

Experience Certificate which was held good in respect of one

contract obviously could not have been relied upon by the Petitioner.

He submitted that the scope of work was expanded if both the

contracts were awarded to the same bidder.

20. The learned senior counsel further submitted that bid of the

Petitioner was rejected by the Respondents in view of the Petitioner

not having submitted two separate Work Experience Certificates. He

invited our attention to communication dated 21 st April 2023,

addressed by the Petitioner in response to the query raised by the

Respondent vide letter dated 19th April 2023 and submitted that the

Petitioner voluntarily submitted and made it clear that the Petitioner

had one project of Doha Metro Project experience where it had

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undertaken TBM tunneling of 5.126 km with finished diameter of 6.17

m of value of Indian Rupees 3,978.90 Cr.

21. In response to query 2, it is submitted by the learned senior

counsel that Petitioner had voluntarily submitted bid for Package 2

after the Petitioner was found technically responsive for Package 1.

He submitted that the said letter addressed by the Petitioner was

without any protest and having accepted that if Petitioner's bid was

technically responsive for one package, the Petitioner will be

considered for Package - 2, the Petitioner has given up its

contention which is now sought to be raised before this Court for the

first time. He submitted that in view of unequivocal acceptance by

the Petitioner vide letter dated 21st April 2023 and having made a

request that in case of Petitioner's bid having been found technically

responsive for one package, same shall be considered for Package

- 2, the Petitioner now cannot be allowed to urge that there was any

deviation in the tender conditions.

22. Learned senior counsel vehemently urged that bidder should

be qualified and experienced to complete both the packages and

hence two separate Work Experience Certificates were required to

be submitted. He submitted that under Clause 3.14 and 3.15 of the

tender, Respondents were permitted to seek any clarification from

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the bidder. He submitted that upon scrutiny of the technical bid of the

Petitioner, since it was found that same was not responsive in view

of the Petitioner not having submitted the Work Experience

Certificate in respect of both packages, Respondents had exercised

their right under Clauses 3.14 and 3.15 of the tender condition which

was duly responded by the Petitioner.

23. Learned senior counsel submitted that in any event the

Respondents being draftsman of the tender condition, the

interpretation of the terms and conditions of the tender as made by

the Respondents would be binding and not as sought to be

canvassed by the Petitioner. Learned senior counsel also placed

reliance on the following Judgments.

a. Afcons Infrastructure Limited V/s. Nagpur Metro Rail

Corporation Limited and Another,2;

b. National High Speed Rail Corporation Limited V/s.

Montecarlo Limited and Another,3;

c. W . B. State Electricity Board V/s. Patel Engineering Co.

Ltd. and others4; and

d. Ramana Dayaram Shetty V/s. International Airport Authority

2 (2016) 16 Supreme Court Cases 818 3 2022 SCC OnLine SC 111 4 (2001) 2 Supreme Court Cases 451

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of India and Others.5

24. In so far as the submissions made by learned senior counsel

Mr. Dwarkadas in Writ Petition (L) No.12023 of 2023 for Package -2

is concerned, it is submitted by the learned senior counsel that

Clause 1.2 defined 'contract price'. He submitted that it is made clear

in the said definition of the contract price that the provisional sum

shall be operative as stated in the clause 1.3.2. The contract price

shall be the total amount including provisional sum and excluding

GST. Learned senior counsel invited our attention to averments

made in paragraph 5.5 and 5.6 of the Writ Petition (L) No. 12023 of

2023 and submitted that it is the case of the Petitioner itself that the

Petitioner realized the mistake on or around 25th April 2023 that it had

inadvertently submitted its bid amount inclusive of tax in the coloumn

for "rate without tax" and "rate with tax" of the price schedule. He

submitted that alleged error in the price bid submitted by the

Petitioner was admittedly sought to be corrected after opening of the

price bid submitted by the successful bidder.

25. Mr. Dwarkadas, learned senior counsel for the Petitioner

made an attempt to distinguish the paragraphs of the Judgment of

the Hon'ble Supreme Court in the case of Supreme Infrastructure

5 (1979) 3 Supreme Court Cases 489

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India Limited relied upon by Dr. Sathe and relied upon paragraph

No. 11 of the said Judgment and vehemently urged that since

decision making process of the Respondent was malafide or

intended to benefit the successful bidder, the Court has ample power

to interfere with such decision making process. He submitted that

even the said successful bidder had not submitted two separate

Work Experience Certificate initially.

26. In so far as the submission that the financial bid could not

have been opened before expiry of 7 days by the Respondents is

concerned, learned senior counsel relied upon Clause 2.19 r/w 3.2

and submitted that period of 7 days would commence only after

opening of technical bid.

27. In so far as the dispute relating to Package 2 is concerned, the

learned senior counsel for the Petitioner sought to distinguish the

Judgment of the Hon'ble Supreme Court in the case of W. B. State

Electricity Board by relying upon paragraph Nos. 23 and 28 of the

said Judgment. He submitted that since the Petitioner had

inadvertently mentioned the price inclusive of GST, such mistake

committed by the Petitioner unintentionally was required to be

corrected. He submitted that in any event it was a matter of

arithmetic calculation and thus, even if the amount of GST is

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included in the price bid, Respondent would have excluded the

amount of GST which was known to the Respondent and ought to

have considered the price bid of the Petitioner as responsive.

REASONS AND CONCLUSIONS:

28. The short question that arises for consideration of this Court

in so far as Package 1 is concerned, whether the Petitioner was

required to submit two separate Work Experience Certificates i.e.

separately in respect of both the packages or not.

29. It was to the knowledge of the Petitioner that financial bid of

the successful bidder was lowest. The Petitioner however, did not

chose to implead the successful bidder i.e. Megha Engineering and

Infrastructure Limited as party Respondent to the Petition. In our

view, Dr. Sathe is right in his submission that said successful bidder

was necessary party to the Petition and any adverse order if passed

by this Court by accepting the submissions of the Petitioner and if

interferes with the award of contract in favour of the successful

bidder, such successful bidder would be seriously prejudiced. Writ

Petition deserves to be rejected on this ground itself.

30. The Hon'ble Supreme Court in the case of Afcons

Infrastructure Limited (supra) has held that the owner or the

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employer of the project, having authored the tender documents, is

the best person to understand and appreciate its requirements and

interpret its documents. The Constitutional Courts must defer to this

understanding and appreciation of the tender documents, unless

there is malafide or perversity in the understanding or appreciation or

in the application of the terms of the tender conditions. It is possible

that the owner or employer of a project may give an interpretation to

the tender documents that is not acceptable to the constitutional

Courts but that by itself is not a reason for interfering with the

interpretation given. In the same Judgment, the Supreme Court has

also held that the successful bidder has to be impleaded as party to

the Writ Petition and in absence of such successful bidder have not

been made a party, the Court cannot pass any order against such

successful bidder.

31. In our view, the interpretation of the terms of the tender by the

Respondents that there should be two separate Work Experience

Certificate required i.e. two certificates in respect of each Package is

a plausible interpretation. Be that as it may, draftsman of the

documents has to interpret the tender conditions which in this case

are the Respondents. Draftsman of the documents is the best person

to interpret it is own terms of contract. Be that as it may, we do not

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find any allegations of malafide in the Petition filed by the Petitioner

nor the Petitioner has been successful to demonstrate any such

allegations of malafide made across the bar during the course of

arguments.

32. The Hon'ble Supreme Court in the case of National High

Speed Rail Corporation Limited (supra) has held that the Petitioner

once having accepted the terms and conditions of the tender process

with full knowledge of relevant clauses and participated with full

knowledge, thereafter it was not open for the original Writ Petitioner

to make a grievance with respect to such clauses. In our view, the

Petitioner had already submitted clarification to the query raised by

the Respondents to submit two Work Experience Certificates in

respect of each Package and that if the technical bid of the Petitioner

is found responsive, same should be considered for Package - 2.

The Petitioner now after having failed in both Packages, cannot be

allowed to contend that Respondents could not have sought such

clarification from the Petitioner. The principles laid down by the

Supreme Court in National High Speed Rail Corporation Limited

(supra) squarely apply to the facts of this case. We are respectfully

bound by these principles.

33. It is common ground that before carrying out amendment in

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the tender conditions, all the bidders were permitted to submit their

bid for both packages. It was further made clear that successful

bidder would be awarded with only one contract out of the two

contracts. It is also common ground that Work Experience Certificate

was required to be submitted by each of the bidder. Such condition

which prohibited from awarding both the contracts though bidders

would have been even successful was admittedly deleted before the

submission of the technical bids. It was sought to be contended by

the Respondents that since the successful bidder would have been

awarded both packages if was successful, separate Work

Experience Certificate was required to be submitted in respect of

each package.

34. A perusal of the tender condition clearly indicates that under

Clause 3.14, the employer is entitled to seek any clarification in

writing from any bidder regarding its technical bid. Depending upon

the clarification that would be given by the bidders, the employer is

entitled to make deviation in the tender condition. Though the last

date for submission of the technical bid was over and though the

Petitioner not having submitted separate Work Experience Certificate

in respect of both the packages, instead of rejecting the technical bid

of the Petitioner in respect of both the packages, the Respondent

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sought clarification under Clause 3.1.4 from both the bidders. A

perusal of the letter addressed by the Petitioner in response to the

said query raised by the Respondent, Clause 3.1.4, would clearly

indicate that in so far as query No.1 is concerned the Petitioner vide

letter dated 21st April 2023 submitted that threshold technical

capacity aggregating to INR 42,521.78 Cr. INR 21221.08 Cr and INR

21300.70 Cr against the requirement of INR 14,546 Cr for Package -

1 and INR 14922 Cr for Package - 2.

35. In so far as query No. 2 is concerned, the Petitioner submitted

that the Petitioner had experience of some project of Doha Metro

Project where it had undertaken TBM tunneling of 5.126 km with

finished diameter of 6.17 m of value of Indian Rupees 3,978.90 Cr.

(L&T Share in JV). In so far as clarification sought under Clause

3.1.4 of Volume 1 is concerned, the Petitioner made a request that, if

the Petitioner was technically responsive for one package, then the

Respondent may consider Package - 2. A perusal of the said letter

indicates that in the said letter while clarifying the issue, the

Petitioner had not reserved any right to challenge the clarification

sought by the Respondent or that the Petitioner had waived their

contention that the Petitioner was not liable to submit two separate

Work Experience Certificate i.e. one each in respect of both the

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packages.

36. It is not disputed by the Petitioner that in view of the said

clarification issued by the Petitioner vide letter dated 21 st April 2023,

Respondents had taken into consideration the said Work Experience

Certificate in respect of project of Doha Metro Project undertaken by

the Petitioner in respect of Package 2 and having found the technical

bid of the Petitioner responsive, in respect of Package 2 had opened

the financial bid of the said Package. The Petitioner having found

unsuccessful in the financial bid submitted for Package 2, has now

challenged the tender condition or the letter of the Respondent

seeking clarification and asking the Petitioner to submit two separate

Work Experience Certificate. In our view, the Petitioner had already

clarified that the Petitioner has only one Work Experience Certificate

and in case, the bid of the Petitioner was found technically

responsive for one Package, same shall be considered for Package

- 2, the Petitioner now cannot be allowed now to contend that the

said one such Work Experience Certificate was valid for both the

packages.

37. In so far as the Judgment of the Delhi High Court in the case

of Supreme Infrastructure India Limited (supra) pressed in service by

learned senior counsel Mr. Dwarkadas is concerned, Delhi High

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Court has held that employer cannot be bogged down by the literal

rule, even if there be one and throw to winds the basic common

sense and shut its eyes to such obvious errors, to defeat not only the

rights of a deserving bidder, but also sacrifice public interest in the

process. In this case, the Petitioner not having fulfilled the tender

condition and in any event having not clarified that in case of

technical bid of the Petitioner if found responsive, the Work

Experience Certificate submitted by the Petitioner shall be submitted

for Package 2, we do not find any substance in the submission made

by Mr. Dwarkadas, learned senior counsel for the Petitioner that the

Respondents have not acted with basic common sense or has not

taken any reasonable approach while rejecting the technical bid

submitted by the Petitioner.

38. In so far as the submission of Mr. Dwarkadas, learned senior

counsel for the Petitioner that the Respondents could not have

opened the financial bid before the expiry of 7 days of the opening of

the technical bid and displaying the outcome of the opening of the

technical bid is concerned, in our view, there is no substance in the

submission of the learned senior counsel. The Petitioner had already

made a request to the Respondents to consider the said Work

Experience Certificate submitted by the Petitioner, if the technical bid

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of the Petitioner is found responsive for Package - 2, however,

Respondents having found that there was only one successful

bidder. In our view, no prejudice would have caused to the Petitioner

even if the price bid of the successful bidder was opened before

expiry of seven days.

39. In so far as Package - 2 is concerned, it is clear that so called

alleged mistake discovered by the Petitioner in the financial bid

submitted by the Petitioner was sought to be rectified after opening

of the financial bid having found financial bid as rejected. Such error

cannot be allowed to be corrected after opening of the financial bid.

The Respondents rightly rejected the request of the Petitioner to

rectify any such error. In so far as 'Manual for Procurement of Works

issued by the Government of India, Ministry of Finance' pressed in

service by Mr. Dwarkadas, learned senior counsel for the Petitioner

is concerned, such Manual cannot be applied to the contract in

question. The said Manual is not applicable to the Respondents.

Reliance placed on the said Manual by the learned senior counsel

for the Petitioner is thus misplaced.

40. The Hon'ble Supreme Court in the case of W. B. State

Electricity Board has laid down the principles as to when the Court

can interfere in the proceedings seeking relief in equity on the

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ground of mistake. In our view, since there was no mistake in any of

the provisions of tender condition and both the parties having been

ad Idem about the terms of the tender, we are not inclined to

interfere with the process of awarding the contract on the ground of

alleged mistake in any of the terms and conditions of the contract.

Mr. Dwarkadas, learned senior counsel for the Petitioner has

pressed in service and relied on paragraph Nos. 23 & 24 of the same

Judgment in which the Supreme Court held that the mistake or errors

in question are unintentional and occurred due to the fault of

computer termed as a repetitive systematic computer typographical

transmission failure.

41. We are afraid we cannot accept the submission of Mr.

Dwarkadas, learned senior counsel for the Petitioner that the mistake

in mentioning the price bid inclusive of GST in so far as Package - 2

is concerned, ought to have been permitted to be corrected by the

Respondents after opening of the financial bid. The reliance placed

on Paragraph Nos. 23 and 24 of the said Judgment by the learned

senior counsel is thus is clearly misconceived.

42. In our view, Dr. Sathe, learned senior counsel for Respondents

rightly placed reliance on the Judgment of the Hon'ble Supreme

Court in the case of Ramana Dayaram Shetty in support of his

908.12017.23 wpl.doc

various propositions. The said Judgment supports the case of the

Respondents.

43. In our view, there is no merit in any of the contentions raised

by Mr. Dwarkadas, learned senior counsel for the Petitioner. Both

Petitions are devoid of merit and are accordingly dismissed. No order

as to costs. All parties to rely upon the authenticated copy of this

Order.

 (GAURI GODSE, J.)                                  (R. D. DHANUKA, J.)










 

 
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