2023 (5) TMI 1073 - HC - Indian Laws

Rejection of Technical Bids of petitioner - rejection on the ground that the Unique Document Identification Number (UDIN) is not generated in the balance-sheet - HELD THAT - The bidders were required to submit the audited balance-sheet and profit and loss account statement, apart from the Chartered Accountant s certificate to establish the minimum turnover required of Rs.5.00 Crores on an average for the post three years. The Technical Evaluation Committee which evaluates the bids of all the bidders undertakes the said exercise by sitting in its office. The Technical Evaluation Committee, therefore, is entitled to require the bidders to submit duly authenticated documents, which could be relied upon and verified, if necessary, from its own office. The Technical Evaluation Committee is not expected to run around and gather information from departments, such as Income Tax Department, to verify the authenticity of the documents filed by the bidders. Such an exercise, if required to be undertaken by the Technical Evaluation Committee, would impede the process of the tenders and defeat the very purpose of tendering the works, which will generate revenue for the State - The notification dated 02.08.2019 clearly sets out the purpose of its issuance, and the reason for evolution of the UDIN mechanism. The Tax Audit Reports are mandatorily required to have the Unique Document Identification Number in the light of the aforesaid notification. The Tax Audit Reports, placed on record by the petitioner, do not have the UDIN. That being the position, the Technical Evaluation Committee was justified in not relying on the same, since the authenticity of the Tax Audit Reports, produced by the petitioner along with the bids, could not be verified and established - the rejection of the petitioner s technical bids on the ground that the Tax Audit Reports did not bear the UDIN appears to be completely justified, and therefore, there is no merit in these petitions. Petition dismissed.

Summary

Issues involved:
The rejection of technical bids by the Fisheries Department based on non-compliance with tender requirements, specifically the absence of Unique Document Identification Number (UDIN) on Tax Audit Reports.

Summary:
The petitioner participated in tenders for fishing licenses in reservoirs but had their technical bids rejected by the Technical Evaluation Committee due to missing UDIN on Tax Audit Reports. The rejection was based on the requirement of audited balance-sheets and profit/loss statements with a Chartered Accountant's certificate to establish a minimum turnover. The petitioner argued that Tax Audit Reports submitted contained the necessary financial information, despite lacking UDIN. However, a notification mandated UDIN on such reports to prevent false certifications. The Court held that the absence of UDIN made the authenticity of the reports unverifiable, justifying the rejection of the bids to maintain the integrity of the tender process and revenue generation for the State. Consequently, the writ petitions were dismissed, and pending applications were disposed of.