Petition by M/s Ramsaran Singh Projects LLP dismissed; Court emphasizes strict adherence to tender conditions
The Chhattisgarh High Court has dismissed the writ petition filed by M/s Ramsaran Singh Projects LLP challenging their disqualification in the tender process for the construction of an Eklavya Model Residential School at Kanker, Chhattisgarh. The Division Bench, comprising Chief Justice Ramesh Sinha and Justice Ravindra Kumar Agrawal, upheld the decision of Wapcos Limited, emphasizing the importance of strict compliance with tender conditions.
The case arose when M/s Ramsaran Singh Projects LLP's bid was rejected on the grounds that the bank guarantee submitted was not valid for the required period as per the tender conditions. The petitioners argued that this decision was arbitrary and discriminatory, pointing out that another bidder, respondent No. 4, was allowed to proceed despite a similar issue with their bank guarantee.
The Court, however, found that the bank guarantee furnished by the petitioners was valid only until October 18, 2025, while the tender required it to be valid until January 2, 2026. In contrast, the bank guarantee from respondent No. 4 met the required validity period. The Court reiterated that the terms of the tender document are paramount and must be adhered to strictly.
In its judgment, the High Court cited several Supreme Court rulings, including Tata Cellular v. Union of India and Afcons Infrastructure Ltd. v. Nagpur Metro Rail Corporation Ltd., underscoring that judicial review of tender processes is limited to examining the decision-making process for arbitrariness or mala fides, rather than reassessing the merits of the decision itself.
The Court emphasized that the tendering authority is best positioned to interpret its requirements and that courts should respect their commercial wisdom unless there is clear evidence of arbitrariness or irrationality. Finding no such evidence in this case, the Court concluded that the petitioners' disqualification was justified.
The ruling reaffirms the principle that compliance with all tender conditions, including those related to bid security validity, is crucial for maintaining fairness and uniformity in public procurement processes.
Bottom Line:
In tender matters, courts should exercise restraint in interfering with contractual and commercial decisions unless the action is patently arbitrary, irrational, or actuated by mala fides.
Statutory provision(s):
Articles 14 and 226 of the Constitution of India
M/s Ramsaran Singh Projects LLP v. Wapcos Limited, (Chhattisgarh)(DB) : Law Finder Doc id # 2870874
