Court affirms that judicial review in tender matters is limited to examining the decision-making process, not technical evaluations
In a significant ruling, the Delhi High Court dismissed a writ petition filed by Swadeshi Civil Infrastructure Private Limited, challenging the rejection of its technical bid by the Central Public Works Department (CPWD) for a redevelopment project in New Delhi. The court, comprising Justices Anil Kshetarpal and Amit Mahajan, emphasized the limited scope of judicial review in tender matters, focusing on the decision-making process rather than technical evaluations made by the tendering authority.
The case revolved around a Notice Inviting Tender (NIT) for the construction of residential units and associated infrastructure at the General Pool Residential Colony in Sriniwaspuri, New Delhi. Swadeshi Civil Infrastructure's technical bid was rejected due to non-compliance with eligibility criteria specified in Clause 7.1 of the NIT. The petitioner contended that it had fulfilled the eligibility conditions, particularly regarding prior experience in the opted structural system technology.
The court scrutinized the documents submitted by the petitioner, notably the experience certificate for a project at Lok Nayak Jai Prakash Narayan Hospital, which was cited to meet the eligibility requirements. However, the certificate recorded that the hospital project was suspended and abandoned, with only partial completion. The court found that the project did not satisfy the requirement of a satisfactorily completed similar work, as mandated by the NIT.
The bench reiterated that judicial intervention in tender matters is warranted only when the decision-making process is marred by mala fides, arbitrariness, irrationality, or violation of tender terms. The ruling underscored that the tendering authority's interpretation of eligibility criteria should not be substituted by the court unless it is patently irrational or perverse.
This decision reinforces the principle that courts should exercise restraint in contractual and commercial matters, particularly in public infrastructure projects, ensuring that public interest and the integrity of the tender process are preserved.
Bottom line:-
Judicial review in tender matters is confined to examining the decision-making process for arbitrariness, mala fides, irrationality, or perversity, and does not involve re-evaluating technical eligibility criteria set by the tendering authority.
Statutory provision(s): Article 226 of the Constitution of India
