Facts
The petitioner challenged the Tender Evaluation Committee’s decision declaring its technical bid non-responsive for failing to disclose that it had submitted a bid for another road-construction project in Uttar Pradesh.
Source reference: para. 1–8; p. 1–5The Committee treated the omission as a misleading representation under Clause 4.7(i) of Section 2 of the Standard Bidding Document (SBD).
Source reference: para. 1–8; p. 1–5The petitioner argued that Clause 1.3.3 of Section 3 required disclosure only of ongoing works and that it had not yet been awarded the Uttar Pradesh contract.
Source reference: para. 1–8; p. 1–5It also contended that other bidders had similarly failed to provide the required information
Source reference: para. 1–8, 12, 20; p. 1–5, 8–9Issues
1. Whether Clause 1.3.3 of Section 3 of the SBD required disclosure of a work for which the bidder had submitted a bid, even if no contract had yet been awarded
Source reference: para. 5–14; p. 2, 5–72. Whether the petitioner’s non-disclosure justified rejection of its technical bid as a misleading or false representation under Clause 4.7(i) of Section 2 of the SBD
Source reference: para. 7–11; p. 3–53. Whether the Court should interfere with the tender authority’s decision, including in light of the petitioner’s contention that other bidders had also failed to disclose comparable information
Source reference: para. 15–23; p. 6–10Law Applied
Clause 1.3.3 of Section 3 of the SBD required disclosure of both works for which bids had been submitted and works yet to be completed; Clause 4.7(i) of Section 2 permitted disqualification where a bidder made misleading or false representations in material submitted to establish qualification
Source reference: para. 5, 7; p. 2–3A bidder’s participation in another tender may constitute an existing commitment relevant to assessing its bid capacity, even where the contract has not yet been awarded
Source reference: para. 14; p. 6In tender matters, courts exercising jurisdiction under Article 226 should generally defer to the procuring authority’s interpretation of its tender documents and interfere only where the decision-making process is arbitrary, perverse, mala fide, or otherwise warrants intervention.
Source reference: para. 15–19; p. 6–9The Court relied on *Raunaq International Ltd. v. I.V.R. Construction Ltd.*, (1999) 1 SCC 492; *Air India Ltd. v. Cochin International Airport Ltd.*, (2000) 2 SCC 617; *Afcons Infrastructure Ltd. v. Nagpur Metro Rail Corporation Ltd.*, (2016) 16 SCC 818; and *N.G. Projects Ltd. v. Vinod Kumar Jain*, 2022 (6) SCC 127
Source reference: para. 15–19; p. 6–9Reasoning
The Court read Clause 1.3.3 as expressly covering “works for which bids have been submitted,” in addition to incomplete works; the heading “Existing commitments and on-going construction works” reinforced that interpretation.
Source reference: para. 9–14; p. 4–6The absence of a specific table column for pending bids did not excuse disclosure, and the certificate requirement concerning remaining work did not limit the clause’s broader text.
Source reference: para. 9–14; p. 4–6Because the petitioner had submitted a bid for another road project, that information was relevant to evaluating its capacity and should have been disclosed; the omission justified rejection under Clause 4.7(i)
Source reference: para. 9–14; p. 4–6The Court declined to review the treatment of other bidders because the petitioner had not raised that ground in its representation to the Committee and had not adequately pleaded the issue in the writ petition.
Source reference: para. 20–23; p. 8–10Applying the deferential standard for tender review, it found no basis to interfere
Source reference: para. 20–23; p. 8–10Holding
The Court held that the petitioner was required to disclose its participation in the other tender and that the tender authority was justified in rejecting its bid for non-disclosure.
Finding no ground for judicial interference, the Court dismissed the writ petition and disposed of any pending application
Source reference: para. 24–25; p. 10Acts & Sections Cited
2 provisions across 1 statute referred to in this judgment. Each provision opens on LawLens.
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ARYA CONSTRUCTION COMPANYvsUTTARAKHAND RURAL ROADS DEVELOPMENT AGENCY
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