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Construction Pvt. Ltd vs Unknown
2021 Latest Caselaw 4565 HP

Citation : 2021 Latest Caselaw 4565 HP
Judgement Date : 16 September, 2021

Himachal Pradesh High Court
Construction Pvt. Ltd vs Unknown on 16 September, 2021
Bench: Tarlok Singh Chauhan, Satyen Vaidya
    IN THE HIGH COURT OF HIMACHAL PRADESH AT SHIMLA




                                                      .

            ON THE 16th DAY OF SEPTEMBER, 2021

                           BEFORE





         HON'BLE MR. JUSTICE TARLOK SINGH CHAUHAN

                              &

             HON'BLE MR. JUSTICE SATYEN VAIDYA



         Between:-
                   r       to
               CIVIL WRIT PETITION No.5199 of 2021



         M/S DINESH KUMAR SHARMA

         CONSTRUCTION PVT. LTD.,
         #331/13, 3rd FLOOR, NAKO
         BUILDING, OPPOSITE RTO OFFICE,
         SAULIKHAD, MANDI, H.P. THROUGH
         ITS MANAGING DIRECTOR,



         SH. DINESH KUMAR SHARMA                ......PETITIONER

         (BY MS. SHALINI THAKUR, ADVOCATE)




         AND





    1.   BORDER ROAD ORGANIZATION,
         UNDER MINISTRY OF DEFENCE,
         GOVERNMENT OF INDIA HQ (N/W)





         NEAR MARKET ROAD, SECTOR 48 C
         CHANDIGARH, 160047 THROUGH
         ITS ADDITIONAL DIRECTOR GENERAL.

    2.   CHIEF ENGINEER, PROJECT ROHTANG
         TUNNEL BORDER ROADS, HQCE (P)
         ROHTANG TUNNEL C/O 56 APO,
         DISTRICT KULLU, H.P.            ......RESPONDENTS

         (SH.BALRAM SHARMA, ASSISTANT
         SOLICITOR GENERAL OF INDIA,
         FOR RESPONDENTS-1 &2)




                                     ::: Downloaded on - 31/01/2022 23:05:12 :::CIS
                                          2




          (SH. PRANAY PRATAP SINGH,
          ADVOCATE, FOR THE APPLICANT
          IN CMP NO. 10857/2021)




                                                                 .

                 This petition coming on for admission before

    notice this day, Hon'ble Mr. Justice Tarlok Singh





    Chauhan, passed the following:

                              ORDER

The instant petition has been filed for grant of

the following reliefs:-

"i) r Quashing the decision taken by the

Respondent at Annexure P-3 for disqualifying the petitioner on technical evaluation.

ii) For quashing the rejection of representation

Annexure P-5 and directing the respondent to open financial bid of the Petitioner too."

2. The respondents invited bids for the construction

of 3.00 kilometres temporary access road to 'Seri Nallah

Site' over Atal Tunnel Rohtang.

3. The petitioner applied for the same. His bid was

rejected at the technical stage itself (Annexure P-3) with

the remarks 'technically not viable'. The petitioner

thereafter preferred a representation before the

respondents, but the same came to be rejected vide order

dated 02.09.2021 ( Annexure P-5) on the ground that the

petitioner did not fulfill the requirements of Clause 6.3.1(A)

of the subject tender.

.

4. It is vehemently argued by Ms. Shalini Thakur,

Advocate, for the petitioner that the order of rejection as

communicated by the respondents is illegal as the

petitioner fulfills all the requirements of the tender

conditions.

5. We have heard the learned counsel for the

parties and have gone through the documents placed on

record.

6. At the outset, it needs to be observed that under

the scope of judicial review, this Court would not ordinarily

interfere with the judgment of the expert consultant on the

issue of technical qualifications of a bidder when the

consultant takes into consideration the various factors

including the eligibility of the bidder.

7. In Montecarlo Ltd. vs. NTPC Ltd., (2016) 15

SCC 272, the Hon'ble Supreme Court held as under:-

".....Bidder's expertise and technical capability and capacity must be assessed by the experts. In the matters of financial assessment, consultants are appointed. It is because to check and ascertain that technical ability and the financial feasibility have

sanguinity and are workable and realistic. There is a multi-prong complex approach; highly technical in

.

nature. The tenders where public largesse is put to

auction stand on a different compartment. Tender with which we are concerned, is not comparable to

any scheme for allotment. This arena which we have referred requires technical expertise. Parameters applied are different. Its aim is to achieve high degree of perfection in execution and adherence to

the time schedule. But, that does not mean, these tenders will escape scrutiny of judicial review. Exercise of power of judicial review would be called

for if the approach is arbitrary or malafide or

procedure adopted is meant to favour one. The decision making process should clearly show that the said maladies are kept at bay. But where a

decision is taken that is manifestly in consonance with the language of the tender document or

subserves the purpose for which the tender is floated, the court should follow the principle of

restraint. Technical evaluation or comparison by the court would be impermissible....."

8. The Hon'ble Supreme Court in The Silppi

Constructions Contractors vs. Union of India (2019)

11 SCALE 592, observed as under:-

"19.....In contracts involving technical issues the courts should be even more reluctant because most of us in judges' robes do not have the necessary expertise to adjudicate upon technical issues beyond

our domain. As laid down in the judgments cited above the courts should not use a magnifying glass

.

while scanning the tenders and make every small

mistake appear like a big blunder. In fact, the courts must give "fair play in the joints" to the government

and public sector undertakings in matters of contract. Courts must also not interfere where such interference will cause unnecessary loss to the public exchequer.

20. The essence of the law laid down in the judgments referred to above is the exercise of restraint and caution; the need for overwhelming

public interest to justify judicial intervention in

matters of contract involving the state instrumentalities; the courts should give way to the opinion of the experts unless the decision is totally arbitrary or unreasonable; the court does not sit like

a court of appeal over the appropriate authority; the court must realise that the authority floating the tender is the best judge of its requirements and,

therefore, the court's interference should be minimal. The authority which floats the contract or

tender, and has authored the tender documents is the best judge as to how the documents have to be interpreted. If two interpretations are possible then

the interpretation of the author must be accepted. The courts will only interfere to prevent arbitrariness, irrationality, bias, mala fides or perversity...."

9. The next aspect is with respect to centering

material possessed by the bidder, the tender documents

specially indicate the minimum construction equipments,

tools and plants which are available with the tenderer. The

same are contained in Clause 6.3 of the tender document

.

which read as under:-

"6.3 Vehicles, Equipments and Plants(VEP):-

6.3.1 Tenderer should own or have assured access (through hire/lease/purchase agreement/other commercial means) to the requisite Equipment,

Plants and vehicles in good working condition (complete usage life not more than 7 years except stone crusher)given hereunder:

(A) Critical Equipment to be owned by the tenderer:

E.g.:-

S/No. Name of VEP Requirement in Remarks

Nos.

    (iii)    Dumper/Tipper           (8-10       06
             Cum)






             breaker 20 Ton Capacity






             Loader/Backhoe
    (vi)     Mechanical      Broomer/Air         01
             Compressor

             (8-10 Ton Capacity)

    (ix)     Water    Tanker    10     KL        01
             Capacity

             Electronic    Sensor For
             flexible pavement










    (xi)     Grader with        hydraulic      01
             controls




                                                               .






    (xiii)   Emulsion            Pressure      01
             Distributor





                 Note:-

1. The bidder shall have necessary mining, environmental and pollution clearances to

operate, quarrying operation, crushing operation and Bituminous works.

2 Any other equipment if required as per

requirement of work to be arranged by

contractor on their own cost.

6.3.2 Tenderer shall indicate source of equipments, Plants and vehicles long with vintage required for

execution of work in following format.

                       (i)     Item
                       (ii)    Year of Manufacturer




(iii) Source from where to be arranged (Owned/leased agreement etc.)

(iv) Location presently deployed

(v) Based on known commitments, whether will be available for use in the proposed

contract.

Copy of documentary support of ownership/assured access to be satisfaction of the Accepting Officer.

Note: Tenderer should own critical V/E/P hired agreement as per specific requirement of the work as decided/specified by the tender issuing authority/Accepting Officer in the tender."

10. It would be noticed that in terms of Clause

6.3.1(A), certain critical equipments (13 numbers) are

required to be owned by the tenderer and for this purpose,

the petitioner has filed an affidavit dated 02.08.2021 which

.

reads as under:-

"Affidavit

I, Dinesh Kumar Sharma (MD) M/s Dinesh Kumar Sharma Const.(P) Limited aged 62 years # 3rd Floor, Nako Building, near RTO Office Saulikhad,

Tehsil Sadar Distt. Mandi, H.P. do hereby solemnly affirm and declare that:-

I am owner in possession for the following

machinery & equipments:-

breaker 20 Ton Capacity

(8-10 Ton Capacity)

9 Water Tanker 10 KL 1 Capacity

electronic sensor for flexible pavement

controls

. 13 Emulsion Pressure 1

Distributor

Verification

I further declare on oath that the contents of this affidavit are true to the best of my knowledge and belief, nothing has been concealed therein. Verified at Mandi on this

2nd day of August, 2021.

          Item     Year     of Source from Location                Whether
                   Manufactur- where     to Presently              will      be
                   er          arranged     deployed               available
                      r                                            for use in

                                                                   the
                                                                   proposed
                                                                   contract
    HMP    (Min 2007             Swami Agro            Kullu       Working in
    20-30 TPH)                   Industry                          good



                                                                   condition
    Stone          2021          Dhiman                Kullu       Working in
    Crusher                      Engineering                       good




                                 works                             condition
    Tipper (8- 2020,             Behl Motor &          Kullu       Working in





    10 Cum)    2018,             Supreme                           good
               2017,             Automobiles                       condition
               2017,





               2017,
               2013,
    Excavator   2017             Kobelco               Kullu       Working in
    with   rock                  Construction                      good
    breaker 20                   Equipment &                       condition
    Ton                          Tappan Ind.
    capacity
    Front wheel 2019         & Krishana               Kullu        Working in
    loader      2014           Automobiles                         good
                                                                   condition
    Air            2016      & Manglam                Kullu        Working in










    compressor     2014        Sales        &                     good
                               Service                            condition




                                                                .
    Tandem       2015          Escort                Kullu        Working in
    vibratory                  Limited                            good





    roller (8-10                                                  condition
    Ton
    Capacity)





    Static roller 2018       & GS Kalsi Ent.         Kullu        Working in
                  2018                                            good
                                                                  condition
    Water             2021     Gokul        &        Kullu        Working in





    Tanker 10                  Company                            good
    KL capacity                                                   condition
    Mechanical        2015     Amman                Kullu         Working in
    paver with                 Applo India                        good
    electronic                 Pvt. Ltd.                          condition

    sensor for

    flexible
    pavement
    Grader with       2021     Gainwell Cat          Kullu        Working in
    hydraulic                                                     good


    controls                                                      condition
    Tar Boiler        2016     Mansa Ind.            Kullu        Working in
                                                                  good
                                                                  condition




    Emulsion          2015     Kirti                 Kullu        Working in
    pressure                   Manufacturi-                       good





    distributor                ng & Trading                       condition
                               Co.





11. However, the contents of this affidavit are not

true and are rather false as the petitioner admittedly is

only possessing one equipment out of 13 specified in

Clause 6.3.1(A) (supra).

12. Confronted with this, learned counsel for the

petitioner would vehemently argue that then in terms of

Clause 6.3, the equipment was not required to be owned,

but could even be hired.

.

13. However, we find no merit in this contention

for the simple reason that the critical equipments as

specified in Clause 6.3.1(A) are required to be owned by

the tenderer and it is only when any other equipment is

required as per the requirement of the contract, the same

would be arranged by the contractor at his own costs.

14. That apart, each of the terms of the contract has

to be construed and given effect to in its plain and simple

meaning, even if, that may act harshly against any of the

bidders. This Court does not exercise any appellate

jurisdiction over the decision of the Tender Committee and

the Competent Authority.

15. The decision making process in the instant case

is absolutely transparent. Even otherwise, it would not be

safe to award the contract to the petitioner due to non-

availability of requisite infrastructure, machinery and

equipment that is currently owned by the petitioner.

16. The decision making process, in our considered

view, is not vitiated for any reason whatsoever. As

repeatedly held by the Hon'ble Supreme Court, the decision

making process of the employer or owner of the project in

accepting and rejecting the bid of the tenderer should not

.

be interfered with except on the grounds of malafides, bias

or when it is intended to favour someone. The decision can

be interfered only when the same is arbitrary or irrational

and the decision is taken based on unreasonable grounds.

The decision must be perverse so as to call for the

interference. r

17. In view of the aforesaid discussion, we find no

merit in this petition and the same is dismissed, leaving the

parties to bear their own costs. Pending application, if any,

also stands disposed of.

(Tarlok Singh Chauhan)

Judge

(Satyen Vaidya) Judge

16th September, 2021.

(krt)

 
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