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M/S Assam Supply Agency A ... vs The Union Of India Represented By ...
2021 Latest Caselaw 274 Mani

Citation : 2021 Latest Caselaw 274 Mani
Judgement Date : 15 November, 2021

Manipur High Court
M/S Assam Supply Agency A ... vs The Union Of India Represented By ... on 15 November, 2021
           IN THE HIGH COURT OF MANIPUR
                            AT IMPHAL
                       W.P. (C) No. 179 of 2021
   1. M/S Assam Supply Agency a proprietary Firm registered under
      the Manipur Trade Articles (Licensing and Control) Order/1986
      being Licence No. 366/2001/TL represented by the Power of
      Attorney holder namely Mohd Bila Ali, aged about 39 years old,
      S/o Zafar Ali of BT Road, P.O. Imphal, P.S. City, Imphal West
      District, Manipur-795001.
   2. M/S Usha Singh Chouhan, a proprietary Firm registered under
      the Manipur Trade Articles (Licensing and Control) Order/1986
      being Licence No. 353/2k/TL represented by its Proprietor Usha
      Singh Chouhan, aged about 49 years old, D/o Girdhari Singh of
      Khwai Brahmapur Nagamapal, P.O. Imphal & P.S. Lamphel,
      Imphal West District, Manipur-795001.


                                                         ... Petitioners.
                                 -Versus -

   1. The Union of India represented by the Secretary, Ministry of
      Home Affairs, Government of India, North Block, New Delhi-
      110001.
   2. The Director General of Assam Rifles, Shillong, Meghalaya State,
      Pin - 793010.
   3. M/S Uday Kumar Sing, represented by its proprietor Uday Kumar
      Singh, aged about 45 years old, S/o Chandradip Singh, House
      No. 112, Upper Jail Road, Shillong Meghalaya State-793001.


                                                     .......Respondents

B E F O R E HON'BLE MR. JUSTICE AHANTHEM BIMOL SINGH

For the petitioners : Mr. N. Ibotombi, Sr. Advocate

For the respondents : Mr. B. Ravi Sharma, CGSC & Mr. L. Shashibhushan, Advocate Date of Hearing : 22.06.2021, 31.08.2021, 07.09.2021 & 09.09.2021.

     Date of Order          :   15.11.2021




W.P. (C) No. 179 of 2021                                         Page 1
                                   JUDGMENT & ORDER
                                       (CAV)


Heard Mr. N. Ibotombi, learned senior counsel appearing for the

petitioners, Mr. BR Sharma, learned CGSC appearing for the respondents

No. 1 & 2 and Mr. L. Shashibhushan, learned counsel appearing for the

respondent No. 3.

[2] The present writ petition had been filed with the prayer of quashing the

acceptance letter dated 19.02.2021 in so far as, it relates to the private

respondent No. 3 in respect of tender No. Q-Fresh/2021-22/Sch-47 dated

06.11.2020 for supply of Group B ration to HQ IGAR(S) and 15 AR under

schedule No. 47 for the financial year 2021-22, tender No. Q-Fresh/2021-

22/Sch-48 dated 06.11.2020 for supply of Group C ration to HQ IGAR(S) and

15 AR under schedule No. 48 for the financial year 2021-22, tender No. Q-

Fresh/2021-22/Sch-55 dated 06.11.2020 for supply of Group B ration to HQ 9

Sector AR and 16 AR under schedule No. 55 for the financial year 2021-22

and tender No. Q-Fresh/2021-22/Sch-56 dated 06.11.2020 for supply of

Group C ration to HQ 9 sector AR & 16 AR under schedule No. 56 for the

financial year 2021-22.

[3] According to the petitioners, they are registered proprietorship firm

registered under the Manipur Trade Articles (Licensing and Control) licensing

order/1986 having licence No. 366/2001/TL and licence No. 353/2K/TL

respectively.

[4] The Director General of Assam Rifles, Shillong Meghalaya, who is the

respondent No. 2 herein, issued different notices bearing No. Q-Fresh/2021-

W.P. (C) No. 179 of 2021 Page 2 22 dated 06.11.2020 inviting electronic bids (online/e-tender) under 2 (two)

bids system, i.e., technical bids and cost bids for supply of Group B ration

(Vegetable) under schedule No. 47 and Group C ration (non-vegetable) under

schedule No. 48 to HQ IGAR (south) including No. 12 Field Workshop Assam

Rifles, S & T Coy of No. 4 MGAR Bn. HQ 15 Assam Rifles including 2 (two)

Rifle Coys at Mantripukhari, Assam Rifles Transit Camp at Minuthong and

four COBS of 15 (fifteen) Assam Rifles at Yaingangpokpi (YKPI),

Chingmeirong, Sawombung, Koirengei and one TOB at Sagolmang during the

financial year 2021-22. The tender value in respect of Group B ration under

schedule No. 47 is Rs. 1,75,98,000/- (Rs. One crore seventy five lakh ninety

eight thousand) only and the tender value in respect of Group C ration under

schedule No. 48 is Rs. 3,58,47,000/- (Rs. Three Crore fifty eight lakh forty

seven thousand) only.

[5] The respondent No. 2 also issued different notices bearing No. Q-

Fresh/2021-22 dated 06.11.2020 inviting electronic bids (online/e-tender)

under 2 (two) bids system, i.e., technical bids and cost bids for supply of

Group B ration (vegetable) under schedule No. 55 and Group C ration (non-

vegetable) under schedule No. 56 to HQ 9 sector Assam Rifles, Bn. HQ 16

Assam Rifles including 2 (two) Rifle Coys and No. 4 Workshop Assam Rifles

at Keithelmanbi, 3 (three) COBs at Singjamei, Chanchipur & Lilong during the

financial year 2021-22. The tender value in respect of Group B ration under

schedule No. 55 is Rs. 92,03,000/- (Rs. Ninety two lakh three thousand) only

and the tender value in respect of Group C ration under schedule No. 56 is

Rs. 2,13,80,000/- (Rs. Two crore thirteen lakh eighty thousand) only.

W.P. (C) No. 179 of 2021 Page 3 Altogether 4 (four) firms including the present petitioners and the

respondent No. 3 herein submitted their tender bids in respect of supplying

Group B and Group C rations under schedule Nos. 47, 48, 55 & 56.

[6] The guidelines/procedures for submissions of the bids in respect of the

aforesaid NIT were also published and in paragraph 6 of the said guidelines,

the documents required to be submitted/ uploaded by the tenderers/ bidders

in connection with their technical bids are elaborately given. Under paragraph

6 (d) of the said guidelines, it is provided as under:-

(d) Past Experience/Performance Certificate. Past experience/performance issued by Army/Central Paramilitary forces/Central Govt/State Govt. Departments for three years (i.e. 2017-18, 2018-19 and 2019-20) for supply of fresh ration items (Group 'B', 'C' &similar items e.g. Veg, Fresh & meat group items) entitled for personnel of Army/Central Para Military Forces/Central Govt/States Govt. Deptts. Past experience value should be equal to 50% or more than the value of the ibid tender. Past experience of any one year with maximum value out of three years will be counted. Past experience value will be considered for contract (s) awarded in a single year only and not by counting two or more years. Bids of all those firms whose performance is judged as 'Not Satisfactory' or Below Satisfactory/level are liable to be rejected. Relevant and authenticated documents supporting the performance/experience issued by the department concerned where the bidder has made the supply is required to be submitted to tender inviting authority as and when called for, by the competent authority for necessary verification. Bids without supporting documents are liable to be rejected. Past experience certificate will be evaluated for any 01 (one) FY out of total 03 latest years & not on all 03 years combined together. Past experience certificate will be furnished for a period of any 03 latest FYs (e.g. FY 2017-18, 2018-19 & 2019-20)."

       W.P. (C) No. 179 of 2021                                                Page 4
 [7]    According to the petitioners, while submitting his bids on 29.12.2020

for supply of Group B & C rations under schedule Nos. 47, 48, 55 & 56, the

respondent No. 3 enclosed performance certificates dated 04.09.2019,

15.09.2020 and 10.12.2020 issued by competent authorities for the amount of

Rs. 2,50,000/- (Rs. Two lakhs fifty thousand) only for the financial year 2017-

2018, Rs. 3,05,93,296/- (Rs. Three crore five lakh ninety three thousand two

hundred ninety six) only for the financial year 2018-19 and Rs. 17,66,700/-

(Rs. Seventeen lakh sixty six thousand and seven hundred) only for the

financial year 2019-20 respectively. It has also been stated that while

submitting his bids, the respondent No. 3 also enclosed a copy of his licence

bearing No. 118/2019/TL dated 27.09.2019 wherein, it is clearly indicated that

there was no partner at all in the firm.

[8] According to the petitioners, the total value of the tenders in respect of

schedules 47, 48, 55 & 56 is Rs. 8,40,28,000/- (Rs. Eight crore forty lakhs

twenty eight thousand) only and as per the terms and conditions provided

under Para No. 6 (d) of the guidelines, all the tenderers/bidders are required

to submit the past experience value of not less than Rs. 4,20,14,000/- (Rs.

Four crore twenty lakh and fourteen thousand) only, i.e., 50 % of the total

value of the tenders.

According to the petitioner, as the respondent No. 3 submitted his past

experience certificates altogether amounting to Rs. 3,05,93,296/- (Rs. Three

crore five lakh ninety three thousand two hundred ninety six) only, which is

less than 50 % of the total value of the tenders, the bids submitted by the

respondent No. 3 cannot be acted upon and should be rejected by the

W.P. (C) No. 179 of 2021 Page 5 respondent No. 2. In view of the above, the petitioners submitted separate

representations dated 04.01.2021 to the respondent No. 2 stating, inter alia,

that while submitting his bids, the respondent No. 3 submit forged documents

and also violates the terms and conditions under Para No. 6 (d) of the

guidelines and therefore, requesting the authorities to consider their

representations and to investigate in the matter against the respondent No. 3.

[9] It has also been stated that in spite of objections raised by the

petitioners, the respondent No. 2 did not take up any steps to reject the

technical bids submitted by the respondent No. 3 and instead the authorities

open the technical bids on 19.02.2021 and issued an order to the effect that

the technical bids submitted by the 4 (four) bidders, including the petitioners

and the respondent No. 3 herein, are accepted in respect of schedule Nos.

47, 48, 55 & 56.

Feeling aggrieved by issuance of the said acceptance letter, the

petitioners filed the present writ petition assailing the same and this Court

passed an interim order on 23.02.2021 directing that the respondent No.2

may continue with the tender process but it shall not be finalized without the

leave of this Court and no work order shall be issued in favour of any person

till the next date. Subsequently, by an order dated 26.03.2021, this Court

extended the earlier interim order and directed that the present arrangement

for supplying of rations made by the authority shall continue.

[10] Mr. N. Ibotombi, learned senior counsel appearing for the petitioners

raised the following 2 (two) points in assailing the impugned acceptance

letter:-

W.P. (C) No. 179 of 2021 Page 6

(a) the licence dated 27.09.2019 submitted by the respondent No. 3 in

connection with his tender bids is a forged and fabricated

document manufactured by tempering and accordingly, the

respondent No. 2 ought to have rejected the technical bids

submitted by the respondent No. 3; and

(b) as the total value of the past experience certificates submitted by

the respondent No. 3 is less than 50 % of the total value of the

tender, the technical bids of the respondent No. 3 cannot be acted

upon and ought to have been rejected by the authorities in terms of

the conditions provided under Para 6 (d) of the guidelines.

[11] To elaborate the first point, it has been submitted by the learned senior

counsel appearing for the petitioners that it is on record that there are 2 (two)

different licence issued by the Collector, Imphal West in favour of the

respondent No. 3 bearing the same number and the same date which are

enclosed as annexure A/7 and A/10 to the writ petition. In one of the licence,

it is indicated that the respondent No. 3 is the sole proprietor of the firm

without any partner and whereas in the other licence, the petitioner is shown

to be proprietor of the firm with a partner, viz., S. Thoiba Singh. It has been

submitted that the said 2 (two) licence cannot stand together and either one

of the licence is not a genuine documents but forged and fabricated

documents. It has also been submitted that while participating in an earlier

tender process, the respondent No. 3 submitted the licence indicating the

firm to be a partnership firm and whereas, in the present tender process the

respondent No.3 submitted the licence indicating the firm as a sole proprietor

W.P. (C) No. 179 of 2021 Page 7 firm without any partner. In view of the above, it has been submitted by the

learned senior counsel that it is crystal clear that the respondent No. 3

tempered with the licence and submitted a forged and fabricated documents

in connection with the present tender and accordingly, the respondent No. 2

ought to have rejected the technical bids submitted by the respondent No. 3.

[12] In connection with the second point, the learned senior counsel

submitted that the total value of the tender under schedules No. 47,48,55 &

56 is altogether Rs. 8,40,28,000/- (Rs. Eight crore forty lakh twenty eight

thousand) only and 50 % of the said amount comes to Rs. 4,20,14,000/- (Rs.

Four crore twenty lakh fourteen thousand) only. Since the total value of the

past experience/performance certificates submitted by the respondent No. 3

is only Rs. 3,05,93,296/- (Rs. Three crore five lakh ninety three thousand two

hundred ninety six) only, it is less than 50 % of the total value of the tender

and accordingly, the technical bids submitted by the respondent No. 3 does

not fulfill the conditions prescribed under Para 6 (d) of the guidelines and the

same cannot be acted upon and is liable to be rejected.

[13] Countering the arguments advanced by the learned counsel for the

petitioner with regard to the first point, Mr. BR Sharma, learned CGSC

appearing for the respondents No. 1 & 2 submitted that the bids including the

said trade licence of the respondent No. 3 were submitted in connection with

an earlier tender process initiated by the DY. D.G. NCC and not by the

present respondent No. 2 and that the said bid submitted by the respondent

No. 3 was rejected at the stage of opening of the technical bids and as such,

W.P. (C) No. 179 of 2021 Page 8 there is no question of acting or accepting the trade licence submitted by the

respondent No. 3.

On receiving the complaints submitted by the petitioners with regard to

the genuineness of the trade licence submitted by the respondent No. 3 in

the present tender process, steps were taken for verification of the said trade

licence and in the process, the Deputy Commissioner, Imphal West District,

the authority who issued the said trade licence in favour of the respondent

No. 3, issued a certificate dated 20.03.2021 certifying that the respondent

No. 3 M/S Uday Kumar Singh having trade licence No. 118/2019/ TL is a

proprietor firm own by Shri Uday Kumar Singh. In view of the above, it has

been submitted that the respondent No. 2 cannot reject the technical bids of

the respondent No. 3 purely on the basis of the false and baseless allegation

of competing bidders as that will lead to a situation were no tender process

can be concluded.

[14] With regard to the arguments of the petitioners in connection with point

No. 2, it has been submitted by Mr. BR Sharma, learned CGSC, that in every

financial year, electronic tenders for supply of fresh ration (Group B & C) to

Assam Rifles formation/units are prepared and floated online. For the

financial year 2021-22, different NITs for a total of 122 schedules were

floated online and schedule numbers 47, 48, 55 & 56 involved in the present

writ petitions are among the said 122 schedules.

During bidding process, the petitioners submitted complaints alleging,

inter alia, that the respondent No. 3 submitted a forged and fabricated

documents along with his bidding documents. The complaints were verified

W.P. (C) No. 179 of 2021 Page 9 by the respondent No. 2 from the issuing authority of the documents and the

allegations leveled by the petitioners were found to be false. Thereafter, the

technical bids as well as the cost bids of all the 4 (four) bidders who were

found to be qualified in eligible were opened by the authorities. On opening

the cost bids, the respondent No. 3 was declared as the lowest bidder in all

the 4 (four) schedules, i.e., schedule Nos. 47, 48, 55 & 56.

[15] Mr. BR Sharma, learned CGSC submitted that the petitioners have

given incorrect facts regarding the total value of the respondent No. 3's past

experience/performance certificates. It has been submitted that the total

value of past experience/performance certificates submitted by the

respondent No. 3 is Rs. 5,17,01,016/- (Rs. Five crore seventeen lakh one

thousand sixteen) only and not Rs. 3,23,84,996/- (Rs. Three crore twenty

three lakh eighty four thousand nine hundred ninety six) only as claim by the

petitioners. The details of the value of the past experience/performance

certificates in respect of the respondent No. 3 as sown in paragraph 7 of the

counter affidavit of respondent No. 1 & 2 are as under:-

Sl. FY Past Actual Past Performance Certificate No Experience Experience/ issued by reflected by Performance Petitioner No. 1 submitted by

(C) No.179 / (M/s Uday Kumar 2001 Singh)

(a) 2017-18 2,50,000/- 2,50,000/- Asst Inspector General of Police (Admn), Meghalaya, Shillong

(b) 2018-19 3,05,93,296/- 3,05,93,296/- Directorate General Assam Rifles, Shillong

(c) 2019-20 17,66,700/- 1,90,76,020/- Directorate General Assam Rifles, Shillong 17,66,700/- Asst Inspector General of Police (Admn), Meghalaya, Shillong

W.P. (C) No. 179 of 2021 Page 10 15,000/- Asst Inspector General of Police (Admn), Meghalaya Shillong Total 3,23,84,996/- 5,17,01,016/-

[16] It has also been submitted by Mr. BR Sharma, learned CGSC that the

total value of all past experience certificates should be 50 % or more of the

total tender value that the contractor have applied for, as claim by the

petitioners, is incorrect. In Para 6 (d) of the guidelines, it is clearly provided

that past experience value should be equal to 50 % or more than the value of

the ibid tender and that past experience of any one year with maximum value

out of 3 (three) years will be counted. Past experience value will be

considered for contract (s) awarded in a single year only and not by counting

2 (two) or more years. In view of the above, it is crystal clear that past

experience value of one year with maximum value out of 3 (three) years of a

contractor should be equal to 50 % or more than the value of the ibid tender,

i.e., for one schedule/tender and not for the combine or total value of all

tenders for which a contractor had submitted his bids.

[17] Mr. BR Sharma, learned CGSC submitted that the respondent No. 3

fulfill all the conditions under Para 6 (d) of the guidelines as will be evident

from the schedule/tender wise submission of past experience in respect of

respondent No. 3, which are as under:-

 Tender/ Value of 50 % of the       Past experience/ Performance Remarks
Schedule the Tender  Tender         submitted by respondent No. 3

                    Schedule/       FY       Contract      Meetin
                     Tender                  Amount        g/ Not
                                                           Meetin
                                                           g 50 %
                                                           of
                                                           Tender
                                                           Value




       W.P. (C) No. 179 of 2021                                         Page 11
 Schedule 1,75,98,000/- 87,99,000/- 2017-18 2,50,000/-       Not       As per
 No. 47                                                     meeting   Clause 6 (d)
                                   2018-19 3,05,93,296/-    Meeting   the
                                   2019-20 2,05,57,720/-    Meeting   respondent

                                                                      % of tender
                                                                      value of two
                                                                      years for
                                                                      schedule

                                                                      hence
                                                                      technically
                                                                      qualified for
                                                                      opening of
                                                                      cost bid.
Schedule 3,58,47,000/-1,79,23,500/- 2017-18 2,50,000/-      Not       As per
 No. 48                                                     Meeting   Clause 6 (d)
                                    2018-19 3,05,93,296/-   Meeting   the
                                    2019-20 2,05,57,720/-   Meeting   respondent

                                                                      % of tender
                                                                      value of two
                                                                      years for
                                                                      schedule

                                                                      hence
                                                                      technically
                                                                      qualified for
                                                                      opening of
                                                                      cost bid.
Schedule 92,03,000/- 46,01,500/- 2017-18 2,50,000/-         Not       As per
 No. 55                                                     Meeting   Clause 6 (d)
                                 2018-19 3,05,93,296/-      Meeting   the
                                 2019-20 2,05,57,720/-      Meeting   respondent
                                                                      No. 3 met
                                                                      50 % of
                                                                      tender
                                                                      value of two
                                                                      years for
                                                                      schedule

                                                                      hence
                                                                      technically
                                                                      qualified for
                                                                      opening of
                                                                      cost bid
Schedule 2,13,80,000/-1,06,90,000/- 2017-18 2,50,000/-      Not       As per
 No. 56                                                     Meeting   Clause 6 (d)
                                    2018-19 3,05,93,296/-   Meeting   the
                                    2019-20 2,05,57,720/-   Meeting   respondent
                                                                      No. 3 met
                                                                      50 % of
                                                                      tender
                                                                      value of two
                                                                      years for




     W.P. (C) No. 179 of 2021                                             Page 12
                                                                   schedule

                                                                  hence
                                                                  technically
                                                                  qualified for
                                                                  opening of
                                                                  cost bid


[18] Mr. BR Sharma, learned CGSC also submitted that if the respondent

No. 2 is to go by misconceived logic of the petitioners that the total value of

past experience/performance certificate should be equal to or more than Rs.

4,20,14,000/- (Rs. Four crore twenty lakh fourteen thousand) only, even

then, the respondent No. 3 is still qualified and eligible as the combined

value of the past experience/performance certificate of the respondent No. 3

is Rs. 5,17,01,016/- (Rs. Five crore seventeen lakh one thousand sixteen)

only, which is more than 50 % of the total value of the tender under

schedules No. 47, 48, 55 & 56.

On the other hand, as the petitioners have submitted their bids

in respect of 23 and 12 schedules, the total tender value of which is Rs.

30,79,67,000/- (Rs. Thirty crore seventy nine lakh sixty seven thousand) only

and Rs. 17,59,61,000/- (Rs. Seventeen crore fifty nine lakh sixty one

thousand) only, they will never be qualified and eligible as the value of their

past experience/performance certificate is not equal to 50 % or more of the

total value of their tenders.

[19] It is lastly submitted by Mr. BR Sharma that the petitioners did not

approach this Court with clean hands and clean heart, inasmuch as they

have concealed material facts and presented incorrect facts with an ulterior

motive of misdirecting this Court and accordingly, the present writ petition is

W.P. (C) No. 179 of 2021 Page 13 not maintainable and deserves to be dismissed outright. In support of his

contentions, the leaned counsel relied on the following judgments of the

Hon'ble Apex Court :-

1) (1996) 5 SCC 589 "Lourdu Mari David Vs. Louis

Chinnaya Arogiaswamy."(Para 2); and

2) (2007) 8 SCC 449 "Prestige Lights Ltd. Vs. State

Bank of India." (Para 33, 35 & 37)

[20] In connection with the first point raised by the counsel for the

petitioners, it has been submitted by Mr. L. Shashibhushan, learned counsel

appearing for the respondent No. 3 that the Licensing Authority under the

Manipur Trade Articles (Licensing & Control) order 1986, issued a trade

licence dated 27.09.2019 in favour of the respondent No. 3, wherein, it was

inadvertently shown, in the front page of the licence, the firm to be a

partnership firm consisting of 2 (two) partners, even though, in the last page

of the said trade licence, the respondent No. 3 was clearly shown as the sole

proprietor of the firm.

[21] On detecting the mistake committed by the licensing authority in the

first page of the said trade licence, the alleged partner viz., Shri. S. Thoiba

Singh filed an application dated 27.09.2019 to the Deputy Commissioner,

Imphal West, who is the licensing authority, highlighting the aforesaid

mistake of showing the said Shri S. Thoiba Singh as a partner of the said

firm and requesting to strikeout/ delete his name from the aforesaid trade

licence.

W.P. (C) No. 179 of 2021 Page 14 [22] On receipt of the said application dated 27.09.2019 submitted by Shri.

S. Thoiba Singh and also on bringing to the notice of the licensing authority

the aforesaid mistake committed at the time of issuing the said trade licence,

the licensing authority corrected the aforesaid mistake and issued a fresh

licence in favour of the respondent No. 1, wherein, the respondent No. 3 is

correctly shown as the sole proprietor of the firm. In view of the above, it has

been submitted that the allegation raised by the petitioners that the

respondent No. 3 submitted a forged and fabricated trade licence and that he

tempered with the said trade licence are totally false and without any basis.

[23] Mr. L. Shashibhushan, learned counsel also submitted that on a plain

reading of the aforesaid application dated 27.09.2019 submitted by Shri. S.

Thoiba Singh, it can be clearly seen that the said S. Thoiba Singh is just the

land owner whose land had been taken on lease by the respondent No. 3 for

the purpose of running his business and that the said S. Thoiba Singh never

entered into any partnership agreement with the respondent No. 3 at any

point of time and accordingly, the question of Shri S. Thoiba Sing being a

partner with the respondent No. 3 does not arise at all and that his name had

been wrongly entered in the first page of the said trade licence, even though,

the true and correct nature of proprietorship of the respondent No. 3 is

reflected/ shown in the last page of the said trade licence. It has further been

submitted that the respondent No. 3 had submitted a copy of the incorrect

trade licence in connection with an earlier tender process due to oversight

and bona fide mistake, however, his tender bids were rejected and as such,

W.P. (C) No. 179 of 2021 Page 15 there is no question of utilizing the incorrect trade licence by the respondent

No. 3.

[24] The learned counsel for the respondent No. 3 also submitted that the

validity of the said trade licence had been accepted by the respondent No. 2

after making necessary enquiries and after proper verification. Accordingly,

the petitioners have no right or locus standi to allege that the trade licence

issued in favour of the respondent No. 3 is not a valid documents unless they

challenge the validity of the said trade licence by filing appropriate

proceedings before the competent authorities or Court. Moreover, whether

the trade licence issued in favour of the respondent No. 3 is valid or not is

purely a disputed question of fact and such disputed questions of fact cannot

be decided by this Court in exercise of its power for Judicial review under

article 226 of the constitution of India. In support of his contentions, the

counsel for the respondent No. 3 relied on the following judgments of the

Apex Court:-

1) (1977) 1 SCC 561 "P. Radhakrishna Naidu & Others Vs.

Government of Andhra Pradesh and Others." (Para 13);

2) (1999) 7 SCC 298 "Chairman, Grid Corporation of Orissa

Ltd. (Gridco) & Others Vs. Sukamani Das (Smt) and

Another." (Para 6) and

3) (2010) 11 SCC 186 "Zonal Manager, Central Bank of

India Vs. Devi Ispat Ltd." (Para 25).

[25] In connection with second point raised on behalf of the petitioners, it

has been submitted by Mr. L. Shashibhushan that different NITs for a total of

W.P. (C) No. 179 of 2021 Page 16 122 schedules were floated online by the respondent No. 2 and in fact, 4

(four) different NITs in respect of schedules No. 47, 48, 55 & 56 were issued

and the same are enclosed as Annexures B/3, B/3(i), B/3(ii) and B/3 (iii) in

the counter affidavit filed by the respondent No. 3. All the said NITs and

contract works under different schedules cannot be combined and club

together at all since the contract works are distinct and different from each

other.

[26] The learned counsel further submitted that the conditions under Para 6

(d) of the guidelines have not been correctly interpreted by the petitioners. In

Para 6 (d) of the guidelines, it is clearly mentioned that "past experience

value should be equal to 50 % or more than the value of the Ibid tender.

Past experience of any one year with maximum value out of 3 (three) years

will be counted" meaning thereby that past experience value of 1 (one) year

with maximum value should be equal to 50 % or more than the value of a

particular tender.

If the interpretation given by the respondents that the combine past

experience value of 3 (three) years of a contractor should be equal to 50 %

or more than the combine value of all the tenders participated by the

contractor is accepted, then there will be serious consequences. The

petitioners, who have submitted their bids in connection with 23 schedules

and 12 schedules respectively, amounting to Rs. 30,79,67,000/- (Rs. Thirty

crore seventy nine lakh sixty seven thousand) only and Rs. 17,59,61,000/-

(Rs. Seventeen crore fifty nine lakh sixty one thousand) only respectively, will

not be qualified or eligible at all as their past experience/performance

W.P. (C) No. 179 of 2021 Page 17 certificate is much less than 50 % of the total value of their tenders. On the

other hand, the respondent No. 3 who have submitted his bids in respect of

only 4 (four) schedules will be qualified and eligible inasmuch as his combine

past experience value of 3 (three) years is more than 50 % of the total value

of the said 4 (four) tenders.

[27] By relying on several Supreme Court Judgments, it has been

submitted by the learned counsel for the respondent No. 3 that the owner or

the employer of a project, having author the tender documents is the best

person to understand and appreciate its requirements and interpret its

documents. The constitutional Courts must differ to his understanding and

appreciation of the tender documents, unless there is mala fide 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. It has also been submitted that exercise of powers of

Judicial review would be called for, if the approach are arbitrary or mala fide

or procedure adopted is meant to favour one. But where a decision is taken

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

sub serves the purpose for which the tender is floated, Court should follow

the principle of restraint. Technical evaluation or comparison by the Court

would be impermissible. The principle that is applied to scan and understand

an ordinary instrument relatable to contract in other spheres has to be

treated differently than interpreting and the appreciating tender documents

W.P. (C) No. 179 of 2021 Page 18 relating to technical works and projects requiring special skills. The owner

should be allowed to carry out the purpose and there has to be allowance for

free play in the joints. The learned counsel have cited the following

judgments of the Hon'ble Apex Court:-

1) (2016) 15 SCC 272 "Montecarlo Limited Vs. National

Thermal Power Corporation Limited." (Para 19-26);

2) (2017) 4 SCC 170 "JSW Infrastructure Limited and

Another Vs. Kakinada Seaports Limited and Others."

(Para 10);

3) (2020) 16 SCC 489 "Silppi Constructions Contractors

Vs. Union of India and Another." (Para 19-20) and

4) (2020) 16 SCC 759 "Bharat Coking Coal Ltd. Vs. Amr

Dev Prabha." (Para 50-52).

[28] After hearing the rival contentions advanced by the counsel for the

parties and after perusal of the record, this Court is of the considered view

that initially a trade licence bearing No. 118/2019/TL dated 27.09.2019 was

issued by the Collector, Imphal West, who is the licensing authority, in favour

of the respondent No. 3. In the front page of the said trade licence, the firm is

shown to be a partnership firm with Shri S. Thoiba Singh as its partner and at

the same time in the last page of the said trade licence, the respondent No. 3

is shown to the sole proprietor of the firm. On realizing the mistake

committed by the licensing authority, the said Shri S. Thoiba Singh submitted

an application dated 27.09.2019 to the licensing authority with a request for

striking out/ deleting his name from the said trade licence by stating that he is

W.P. (C) No. 179 of 2021 Page 19 the owner of the land which has been taken on lease by the respondent No.

3 for business purpose.

On receiving the said application, the licensing authority issued a fresh

trade license bearing the same number and same date as that of the earlier

licence issued in favour of the respondent No. 3. In the said fresh trade

licence, the respondent No. 3 is shown as the sole proprietor and this Court

did not find any material to doubt the validity of the said trade licence. This

Court also find no reason to doubt the statements made by the respondent

No. 3 that he had submitted the incorrect trade licence while submitting his

bid in the earlier tender process for the year 2019-2020 due to oversight and

bona fide mistake.

[29] Since the incorrect trade licence of the respondent No. 3 had not been

utilized for obtaining any earlier contract work and since the respondent no. 2

had accepted the validity of the corrected trade licence of the respondent No.

3 after making necessary enquiries and verification, this Court is not incline

to interfere with the impugned acceptance letter on the basis of the first point

urged by the learned senior counsel appearing for the petitioners.

[30] With regard to the second point, this Court is of the considered view

that the respondents have correctly interpreted the conditions prescribed

under Para 6 (d) of the guidelines, more so, when the respondent No. 2 is

the author of the said guidelines. On careful consideration of the conditions

prescribed under Para 6 (d) of the guidelines, this Court is of the considered

view that the condition postulated therein is that past

experience/performance with maximum value of 1 (one) year out of 3 (three)

W.P. (C) No. 179 of 2021 Page 20 years will be counted and such past experience value should be equaled to

50 % or more than the value of a particular tender.

[31] On examination of the charts given by the respondent No.2, which are

reproduced herein-above at paragraph 15 & 17, this Court finds that the

respondent No. 3 is qualified and eligible and this Court finds no reason to

hold otherwise or to reject the decision of the respondent No. 2 in accepting

the technical bids of the respondent No. 3.

[32] Even if the Petitioners' interpretations of the conditions under Para 6

(d) of the guidelines are accepted, this Court still finds that the respondent

No. 3 is still qualified since the total value of his past experience/performance

certificate is Rs. 5,17,01,016/- (Rs. Five crore seventeen lakh one thousand

sixteen) only, which is more than 50% of the total tender value of the contract

works under schedules No. 47, 48, 55 & 56. On the other hand, the writ

petitioners will not be qualified and eligible as the value of their past

experience/performance certificate is not equal to 50 % or more of the total

value of their tender.

[33] For the findings and reasons given herein above and in view of the

well settled principles of law laid down by the Apex Court regarding the

parameters and limitations of this Court for interfering with the process of

tender for awarding contracts, which have been clearly and elaborately laid

down by the Hon'ble Apex Court in the Judgments relied on by the

respondent No. 3 hereinabove, this Court find no ground or reason for

interfering with the impugned acceptance letter. In the result, the present writ

W.P. (C) No. 179 of 2021 Page 21 petition fails and accordingly, the same is dismissed, however, without any

cost.

Earlier interim order stands vacated.

JUDGE

FR/NRF

Sapana

Digitally KABOR signed by AMBAM KABORAMBA M SAPANA SAPAN CHANU Date:

          A     2021.11.15
          CHANU 10:52:06
                +05'30'




        W.P. (C) No. 179 of 2021                                  Page 22
 

 
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