2016 (2) TMI 1126 - HC - Indian Laws

Tender notice inviting bids from interested parties in connection with construction of a railway infrastructure for Kusmunda railway siding - Held that - It would not be proper to make any direction on RITES not to consider the bids of the other two bidders. The decision of South Eastern Coalfields Limited declaring Track & Tower Infratech (P) Ltd. and Jhajharia Nirman Limited as qualified is not under challenge. The only direction that ought to be made and is made is that RITES shall be entitled to consider the financial bids of all the 8 (eight) bidders who have been found to be qualified either at the instance of RITES or at the instance of South Eastern Coalfields Limited. If at all the petitioners are aggrieved by the decision of South Eastern Coalfields Limited to declare Track & Tower Infratech (P) Ltd. and Jhajharia Nirman Limited as technically qualified, they shall be at liberty to challenge such decision in accordance with law before the appropriate forum, if so advised. A copy of the communication dated January 30, 2016 of South Eastern Coalfields Limited shall be made over to the learned advocate-on-record for the petitioners in course of this day.

Summary

Issues:
1. Allegation of collusion in the tender process.
2. Impleadment of additional respondents.
3. Challenge to the qualification of certain bidders.
4. Scope of relief claimed in the writ petition.

Analysis:
The judgment by the High Court of Calcutta dealt with a writ petition filed by the petitioners regarding a tender process conducted by RITES Limited on behalf of South Eastern Coalfields Limited for the construction of a railway infrastructure. The petitioners, along with others, participated in the tender process, where six bidders were declared technically qualified, including the first petitioner. However, the opening of financial bids was postponed, leading to apprehensions of collusion between RITES and disqualified bidders to stall the tender process.

During the proceedings, it was noted that South Eastern Coalfields Limited was not initially a respondent in the petition. Following submissions that two disqualified bidders were called to submit financial bids, the Bench directed the impleadment of South Eastern Coalfields Limited and the two bidders as additional respondents. South Eastern Coalfields Limited subsequently found the two bidders qualified and requested RITES to open their financial bids.

A key argument raised by the petitioners' counsel was that the qualification of the two bidders was questionable, urging the Bench to direct RITES to proceed without considering their bids. However, considering the relief sought in the petition, the Bench decided not to intervene in the decision of South Eastern Coalfields Limited regarding the qualification of the bidders. The judgment emphasized that RITES could consider the financial bids of all eight qualified bidders, either at its own discretion or as per the recommendation of South Eastern Coalfields Limited.

The judgment concluded by instructing the petitioners to challenge the qualification decision of the two bidders through appropriate legal channels if they disagreed with it. The correction of the cause title of the writ petition was also ordered, and the case was disposed of without any costs.