Facts
The Petitioner challenged the award of public contracts for manpower services (Bid Nos. GEM/2025/B/7005488 and GEM/2025/B/7004775) in favor of Respondent No. 5
Source reference: p. 1The Petitioner alleged that Respondent No. 5 submitted a Chartered Accountant (CA) Certificate with an inflated turnover of ₹10,98,54,61,729/-, while its audited balance sheet purportedly showed only ₹1,09,85,617/-
Source reference: p. 3Respondent No. 1 (NSSO) clarified that Respondent No. 5, being a Micro and Small Enterprise (MSE), was entitled to a minimum of 9 marks regardless of turnover
Source reference: p. 3-4It was further revealed that a typographical error in the CA certificate (adding an extra digit "4") was corrected to show the actual turnover as ₹1,09,85,61,729/-, which matched the audited statements when read as "₹ in 00" per ROC guidelines
Source reference: p. 4-5Issues
1. Whether Respondent No. 5 committed a deliberate misrepresentation/fraud by submitting a CA Certificate with a typographical error in turnover figures, warranting disqualification under the RFP
Source reference: p. 3 / para. 82. Whether the decision-making process of Respondent No. 1 in accepting the clarification and awarding the contract was arbitrary or irrational
Source reference: p. 5 / para. 14Law Applied
Article 226 of the Constitution of India regarding the scope of judicial review in contractual/tender matters
Source reference: p. 1The principle that interference is warranted only if the decision-making process suffers from arbitrariness, irrationality, or procedural impropriety
Source reference: p. 6Request for Proposal (RFP) Clauses 8.4.1(iv), (v) and 8.4.2(v) concerning technical evaluation scores for turnover and the consequences of submitting false information
Source reference: p. 3-4Reasoning
The Court found that the discrepancy in turnover was a "clerical and typographical error" rather than a mala fide misrepresentation.
Source reference: p. 5The corrected turnover of over ₹100 Crores entitled Respondent No. 5 to the maximum 15 marks, yet it was only awarded 9 marks as an MSE; thus, no preferential advantage was gained
Source reference: p. 5Crucially, the Court noted the Petitioner misread the financial statements, failing to realize the figures were represented in "hundreds" (₹ in 00), which actually reconciled the figures to approximately ₹109 Crores
Source reference: p. 5Since Respondent No. 1 sought and verified clarifications before finalization, the Court held the process was transparent and not arbitrary
Source reference: p. 5-6Holding
The Court dismissed the petition, holding that there was no case for interference as the Petitioner’s claims were based on an erroneous interpretation of financial documents
The Court answered that the error was not a "deliberate misrepresentation" intended to secure undue advantage
Source reference: p. 5The petition was dismissed with a cost of ₹20,000/- imposed on the Petitioner for lack of due diligence and filing a grievance based on a misreading of documents, payable to DHCLSC
Source reference: p. 6Original Court PDF
World Class Services LtdvsNational Sample Survey Office & Ors.
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