2020 (1) TMI 2 - HC - Indian Laws

Rejection of Tender application - rejection on the ground that 'as per NIT condition No. 23(V) the GST clearance certificate was mandatory document to be uploaded with tender documents otherwise the tender was supposed to be rejected - case of the petitioner is that he had complied with the said condition and uploaded all the requisite documents, as required in terms of Condition No. 2 (v) and (vi) and was eligible for consideration of his tender application. HELD THAT - It is worthwhile to record herein that the prospective bidders are required to furnish the relevant information/documents alongwith their tender form/ application in a particular manner, as reflected/required in terms of the tender notification and when such compliance has been made, it is not open for the authorities to reject the applications/bids for non-compliance of the condition(s) not mentioned or highlighted in the tender notification - In the present case, the tender notification required the petitioner to upload certain particulars in terms of condition No. 2 (v), which the petitioner has done, but, the respondents have rejected the tender application of the petitioner for not uploading the month-wise GST Clearance Certificate along-with the tender application, which condition was not specifically provided in the tender notification. Petitioner can only be expected to comply with the conditions stipulated in the tender notification and in case the respondents require that tender application should be accompanied with month-wise GST Clearance Certificate, then the said condition should have been reflected in the tender notification itself - In the absence of such condition in the tender application, the action of the respondents in rejecting the tender application/technical bid of the petitioner is arbitrary, contrary to the tender notification and requires to be set aside. This writ petition is allowed and the respondents are directed to issue fresh tender notification highlighting therein all the documents/certificates required to be furnished at the time of uploading the tender application.

Summary

Issues:
1. Compliance with tender notification requirements regarding GST clearance certificate for a flood protection work tender application.

Analysis:
The case involved a dispute where the petitioner's tender application for flood protection work was rejected by the respondents based on the alleged non-compliance with the requirement of uploading a month-wise GST clearance certificate. The petitioner contended that he had uploaded all necessary documents as per the tender notification, which did not explicitly mention the need for a month-wise GST clearance certificate. The respondents, however, argued that such a certificate was mandatory as per the tender terms. The court examined the tender notification's conditions and concluded that the rejection of the petitioner's application solely on the grounds of not submitting the month-wise GST clearance certificate, a requirement not explicitly stated in the tender notification, was unjust and arbitrary. The court emphasized that bidders are expected to comply with conditions explicitly mentioned in the tender notification and held that the rejection was contrary to the terms of the notification.

The court highlighted that the authorities cannot reject applications or bids for non-compliance with conditions that are not clearly outlined in the tender notification. In this case, the petitioner had fulfilled the requirements specified in the tender notification by submitting the necessary documents, including the Income Tax Clearance Certificate and Sales Tax/GST Clearance Certificate. The court found that since the tender notification did not specifically mention the need for a month-wise GST clearance certificate, the rejection of the petitioner's application on that basis was unjustified. The court ruled in favor of the petitioner, allowing the writ petition and directing the respondents to issue a fresh tender notification clearly specifying all the documents/certificates required for tender application submission.

The judgment serves as a reminder that authorities must adhere to the conditions explicitly mentioned in tender notifications when evaluating bids or applications. It underscores the importance of clarity and transparency in tender requirements to ensure fair treatment of bidders. The decision also emphasizes the need for consistency in applying tender conditions and highlights the significance of upholding procedural fairness in such processes to prevent arbitrary rejections based on undisclosed or implicit requirements.