01Facts
The Public Health and Engineering Department (PHED), Rajasthan, invited bids for a major water supply project (Package-01A) with an estimated cost of ₹1,284.30 Crores.
¶ 3On 29.06.2024, the Petitioner was declared "non-responsive" because a bank certificate (FIN-2) provided by its JV partner, M/s HES Infra, was not in the exact prescribed format and supposedly did not show available credit limits.
¶ 6-7The Bid Evaluation Committee (BEC) allowed Respondent No. 4 (SPML-JWIL JV) to clarify deficiencies in its bidding capacity affidavit (FIN-3).
¶ 9.12, 25.4While the Petitioner’s appeals were dismissed and a writ petition was filed, the State issued a Work Order to Respondent No. 4 on 03.09.2025 (at a cost ~₹211 Crores higher than Petitioner's bid), specifically making it subject to this Court’s final decision.
¶ 8, 25.2102Issues
i.1. Whether the writ petition is maintainable despite the Petitioner being an unregistered JV and not specifically challenging subsequent appellate orders.
¶ 20.1, 21.5ii.2. Whether the Procuring Entity acted arbitrarily and discriminatorily by seeking clarifications from one bidder (Respondent No. 4) while rejecting the Petitioner’s bid for a curable defect.
¶ 24iii.3. Whether the requirement of the FIN-2 certificate constituted a "material deviation" justifying outright rejection without clarification under the RTPP Act and Rules.
¶ 25.1103Law Applied
The Rajasthan Transparency in Public Procurement (RTPP) Act, 2012 and the RTPP Rules, 2013, specifically Rule 59 (determination of responsiveness), Rule 60 (clarification of bids), and Rule 61 (waiving non-material non-conformities).
¶ 25.11The "Doctrine of Merger" is not of universal application in administrative law and does not bar the review of an original illegal order (State of U.P. v. Mohd. Nooh).
¶ 20.6Section 69 of the Indian Partnership Act, 1932 does not bar writ petitions as they are not "suits" (Umesh Goel v. H.P. Coop. Group Housing Society).
¶ 21.10Principles of "fair play in action" and non-discrimination under Article 14 (Ram Shyam Co. v. State of Haryana and Banshidhar Construction (P) Ltd. v. Bharat Coking Coal Ltd.).
¶ 25.23, 25.24Provisions in the judgment · 14 · Linked ones open on LawLens
Rajasthan Transparency in Public Procurement Act, 2012 Section 2Section 5Section 7Section 17Section 25Section 55Section 60
Indian Partnership Act, 1932 Section 2Section 56Section 69
Bharatiya Nagarik Suraksha Sanhita, 2023 Section 215Section 379
Presidency Small Cause Courts Act, 1882 Section 19
Arbitration and Conciliation Act, 1996 Section 2
04Reasoning
The Respondents practiced "gross discrimination" by granting Respondent No. 4 liberal opportunities to rectify FIN-3 (a more critical document regarding bidding capacity) while summarily ousting the Petitioner over a technicality in FIN-2.
¶ 25.15-25.19Under Rule 59(3), a rejection is only valid if the omission is "material"; here, the Bank of India later clarified that the Petitioner did possess the requisite ₹20 Crore credit limit at the time of the bid, making the initial defect a "non-material non-conformity" rectifiable under Rule 61.
¶ 25.8, 25.18The "sole bidder" situation created by the State resulted in an avoidable burden of ₹211 Crores on the public exchequer.
¶ 25.22A JV need not be a registered partnership to invoke writ jurisdiction and the Work Order was explicitly issued "subject to the outcome of this petition," thus preventing the creation of any equity in favor of Respondent No. 4.
¶ 18.4, 21.905Holding
The Court allowed the writ petition and quashed the order dated 29.06.2024 declaring the Petitioner non-responsive, holding that the Petitioner met the eligibility criteria and declaring it a "responsive bidder".
¶ 30.1The Court set aside all subsequent actions, including the LOI, agreement, and Work Order in favor of Respondent No. 4, and directed the Respondents to open the Petitioner's financial bid and, if found to be L-1 and otherwise eligible, award the contract to the Petitioner forthwith.
¶ 30.2, 30.3Original Court PDF
M/S. GVPR ENGINEERING LIMITED- M/S HES INFRASTRUCTURE PVT. LTD. JV.vsSTATE OF RAJASTHAN
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