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M/S Kunwar Construction vs State Of Uttarakhand And Others
2023 Latest Caselaw 2659 UK

Citation : 2023 Latest Caselaw 2659 UK
Judgement Date : 12 September, 2023

Uttarakhand High Court
M/S Kunwar Construction vs State Of Uttarakhand And Others on 12 September, 2023
      IN THE HIGH COURT OF UTTARAKHAND
                 AT NAINITAL

           HON'BLE THE CHIEF JUSTICE SRI VIPIN SANGHI
                              AND
             HON'BLE SRI JUSTICE RAKESH THAPLIYAL


                        12TH SEPTEMBER, 2023

         WRIT PETITION (M/S) No. 3352 OF 2022

M/s Kunwar Construction.
                                                                   ...Petitioner

                                      Versus

State of Uttarakhand and others.
                                                               ...Respondents

Counsel for the petitioner.           :   Mr.  Jitendra   Chaudhary,    learned
                                          counsel.

Counsel   for     the    State   of   :   Mr. B.S. Parihar, learned Standing
Uttarakhand.                              Counsel for the State of Uttarakhand.

Counsel for respondent no. 2.         :   Mr. S.S. Chauhan, learned counsel.

JUDGMENT : (per Sri Vipin Sanghi, C.J.)


                We have heard learned counsels, and proceed to

dispose of the Writ Petition.


2.              On 19.04.2023, while passing our order, we had

recorded the history of this case. The relevant paragraphs

read as follows :-

                "5.    This matter has a chequered history. The
                petitioner had participated in the bidding process.
                Petitioner's technical bid was cleared. Objections raised
                by the competitors were considered, and rejected.
                Petitioner's financial bid was found to be L1.

                6.    Thereafter, the petitioner's bid was sought to be
                rejected on the technical ground that the affidavit
            submitted by the petitioner was not in the correct
           format. The petitioner assailed that decision by
           preferring Writ Petition (M/S) No.1426 of 2022, which
           was allowed by this Court on 14.11.2022 by holding that
           the respondents could not have reviewed their earlier
           decision of 14.06.2022, qua the petitioner's technical
           bid, particularly, when the objections of the competitors
           were examined and rejected.

           7.     Thereafter, the respondents have proceeded to
           again hold that the petitioner does not meet the
           technical criteria, inasmuch, as the bid capacity of the
           petitioner is much below than that is required in the
           tender, in question. The bid capacity of the petitioner is
           stated only to be Rs.12.00 lakhs, as against the
           minimum bid capacity of over Rs.4.00 crores required
           for award of the contract.

3.         The respondents were called upon to place on

record the complete exercise undertaken by the Evaluation

Committee,      when    the   petitioner's    technical      bid   was

examined, and was found to be in order. The respondents

were, specifically, required to disclose as to how the

petitioner's bid capacity was held to be acceptable in the

first   round    of    evaluation.    The     further     evaluation

undertaken, while examining the objections raised by

other competitors, was required to be placed on record.


4.         The    respondents        have    filed   their    counter

affidavit in pursuance of the said order.

5.         In the said counter affidavit, reliance has been

placed on the Standard Bidding Document and Manual on

Procurement and Contract Management for PMGSY Rural

Roads Projects, which, according to the respondents,


                                 2
 states that "the Procurement Evaluation Committee will

check the compliance with bid capacity requirements as

stipulated in ITB clause 4.6/ 4.4 D(v) as applicable during

evaluation of Part II bids."

6.         Mr. Chauhan points out that when Part I

evaluation was done, the Committee had recommended

that "the Procurement Evaluation Committee will check the

compliance with bid capacity requirements as stipulated in

ITB Clause 4.6/ 4.4 D (v) as applicable during evaluation

of Part II bids".


7.         The      logic   behind   this   methodology   being

adopted was explained by Mr. Chauhan, to say that the

respondents decided to make sure that the successful

bidder has the bid capacity, as on the date of evaluation of

the financial bid, to execute the work in question


8.         However, Mr. Chauhan has submitted that the

bid capacity of the petitioner was evaluated as on the date

of the issuance of the tender, i.e. 07.05.2022.


9.         We find that the respondents have actually

acted contrary to their own understanding of the bid

evaluation process. Pertinently, the petitioner was issued




                                 3
 a communication on 29.11.2022, requiring the petitioner

to provide the list of works being executed by the

petitioner, so as to assess his bid capacity before the

award of the contract.     The petitioner had responded to

that communication on 30.11.2022.           However, while

declaring the petitioner's technical bid to be disqualified -

on the ground of lack of bid capacity, the current

information provided by the petitioner on 30.11.2022 was

ignored, and the petitioner's bid capacity was assessed by

examining the position, as it existed, with regard to his bid

capacity, on 07.05.2022.


10.       Mr. Chauhan does not dispute the fact, on

instructions, that, if the bid capacity of the petitioner were

to be evaluated as on the date of evaluation of the

financial bid, which is 16.12.2022, the petitioner had the

bid capacity to execute the work in question.


11.       Mr. Chauhan has submitted that the work in

question was started way back in the year 2016, which

comprised of construction of a road, admeasuring about

14.5 kms. Out of the aforesaid work, about 10 kms. road

was constructed by the erstwhile contractor, and the

contract in question was to be awarded for completion of



                              4
 the balance work of the road. He has also pointed out that

there was a huge difference of nearly 50% between the

bids given by the petitioner and the L2 bidder, i.e. M/s

Bhagwan Singh Deopa.


12.       The    petitioner   has   placed   on   record   the

Standard Bidding Document for PMGSY. The document

placed as Annexure No. 2 shows that it is for "Balance

Work of Ailagar to Jumma Motor Road Stage-I (0.000 to

14.500), Package No.RIDF- XXI/09/10 (based on Model

SBD June, 2020)", issued by Uttarakhand Rural Roads

Development Agency, Ministry of Rural Development,

Government of Uttarakhand.


13.       Aforesaid being the position, the rejection of the

petitioner's technical bid on 16.12.2022 was, ex facie,

erroneous.      Therefore, the respondents are bound to

consider the petitioner as technically qualified, since no

other reason for petitioner's technical bid disqualification

was found, or pointed out by the respondents. In fact, the

petitioner had earlier been declared to be technically

qualified by the respondents themselves.


14.       Consequently, we allow this Writ Petition, and

direct the respondents to award the work to the petitioner


                              5
 forthwith, who, admittedly, was the L1 bidder. The steps,

with regard to award of the contract to the petitioner be

taken, subject to the petitioner complying with all other

conditions of the tender, and subject to his meeting the

bid capacity as on date.


15.       The Writ Petition stands disposed of in the

aforesaid terms.


16.       Consequently, pending application(s), if any,

also stand disposed of accordingly.


                                      ________________
                                       VIPIN SANGHI, C.J.


                                 __________________
                                 RAKESH THAPLIYAL, J.

Dt: 12th SEPTEMBER, 2023 Rahul

 
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