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Constitutional law

VINISHMA TECHNOLOGIES PVT. LTD. versus STATE OF CHHATTISGARH & ANR.

The impugned past-performance restriction (requiring cumulative past supplies of Rs.6.00 crores to Chhattisgarh State Government agencies in the last three financial years) is arbitrary, unreasonable and discriminatory, lacks a rational nexus to the object of ensuring effective supply of Sports Kits, and thus violates Article 14 and Article 19(1)(g) of the Constitution; the High Court orders and the tender notices are quashed and set aside, with liberty to issue fresh tenders.

  • Article 14
  • Article 19(1)(g)
  • Tender conditions
  • Doctrine of level playing field
  • Reasonableness
  • Discrimination
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Tender

MAHA MINERAL MINING & BENEFICATION PVT. LTD. versus MADHYA PRADESH POWER GENERATING CO. LTD. & ANR.

The Supreme Court held that Clause 5(D) did not mandate production of the JV agreement itself to rely on past-experience of a previous consortium/JV where the bidder's proportionate share was established by a work execution certificate; the Committee and High Court erred in disqualifying the appellant solely for non-production of the JV agreement, and that decision is set aside. However, the question whether the appellant met the washery capacity requirement under Clause 5(B) is a contentious factual issue not considered by the Committee and the High Court diagnosed it without giving the appe…

  • Disqualification
  • Joint venture
  • Past experience criteria
  • Washery capacity
  • Notice inviting tender clause 5(d) and clause 5(b)
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Contract law

BTL EPC LTD. versus MACAWBER BEEKAY PVT LTD AND OTHERS

The Supreme Court restored the Single Judge's decision, holding that BHEL and the Telangana State Power Generation Company found that the agreement with the Chinese company was in the nature of a service agreement and not a bidding consortium under clause 7.2; consequently the registration requirement under the Public Procurement Order did not apply to render the appellant's bid ineligible, and the Division Bench erred in interfering with the Single Judge absent perversity or arbitrariness.

  • Judicial review
  • Pre-qualification requirements
  • Consortium agreements
  • Registration requirement under public procurement order
  • Tender evaluation
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Constitutional law

M/S INDIAN MEDICINES PHARMACEUTICALS CORPORATION LTD versus KERALA AYURVEDIC CO OPERATIVE SOCIETY LTD. & ORS.

Paragraph 4(vi)(b) of the National AYUSH Mission Operational Guidelines places IMPCL and other Central/State PSUs, pharmacies under State Governments and cooperatives on an equal footing; the State's procurement of Ayurvedic medicines exclusively from IMPCL by nomination without inviting tenders was arbitrary and violative of Article 14. Procurement must ordinarily be through a transparent process such as tenders; deviation from tendering is permissible only in exceptional circumstances supported by cogent material.

  • Article 14
  • Tendering
  • State largesse
  • Judicial review of government contracts
  • National ayush mission operational guidelines
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Constitutional law

AIRPORT AUTHORITY OF INDIA versus CENTRE FOR AVIATION POLICY, SAFETY & RESEARCH (CAPSR) & OTHERS

The High Court erred in entertaining the writ petition brought by an NGO that was not an aggrieved bidder; moreover, the challenged RFP eligibility criteria (regional clustering, scheduled-aircraft experience requirement, and turnover thresholds as justified and some reduced by AAI) were within the AAI's commercial and administrative discretion and were not shown to be arbitrary, discriminatory or mala fide, and therefore the High Court's order setting aside those conditions was quashed and the writ petition dismissed.

  • Judicial review of tender conditions
  • Locus standi of ngos
  • Eligibility criteria in tenders
  • Msme policy and procurement
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Goods and services tax

UNION OF INDIA & OTHERS versus BHARAT FORGE LTD. & ANOTHER

The appeal was allowed and the High Court judgment directing the purchaser to obtain and specify the correct HSN code in the NIT was set aside because no enforceable statutory or public duty was shown to compel the purchaser to determine and declare HSN/GST rates; the tender clauses, read together, place responsibility on bidders to quote applicable taxes and the supplier remains liable to pay GST (subject to reverse charge exceptions); however, to protect revenue and reduce evasion risk, the Court directed that when contracts are awarded the purchaser must forward details of the awarded cont…

  • Writ of mandamus
  • Tender evaluation
  • Hsn code classification
  • Make in india policy
  • Reverse charge mechanism
  • Advance ruling
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Constitutional law

MIHAN INDIA LTD. versus GMR AIRPORTS LTD. & ORS

The letter dated 07.03.2019, accepted and acknowledged by GAL on 12.03.2019, amounted to a Letter of Award/acceptance under the RFP and therefore created a concluded contractual position making GAL the concessionaire; the subsequent annulment of the bidding process by MIL (19.03.2020) after issuance of LoA and at the stage of executing the Concession Agreement was an arbitrary exercise of power in violation of Article 14 and therefore was quashed; the writ remedy under Article 226 was available and appropriate and non-joinder of UoI/AAI did not vitiate the relief granted.

  • Annulment of tender
  • Letter of award / concluded contract
  • Public law remedy under article 226
  • Article 14 - arbitrariness in procurement
  • Section 12a airports authority of india act
  • Specific performance vs public law remedy
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Constitution of india

NATIONAL HIGH SPEED RAIL CORPORATION LIMITED versus MONTECARLO LIMITED & ANR

Where bidding documents, evaluation methodology and terms were prepared under JICA Standard Bidding Documents and the consultant (JICC) and financier (JICA) consciously found a bidder’s technical submission non‑responsive for material deviation, the High Court erred in substituting its view in the absence of pleaded and established mala fides, favouritism or perversity; judicial review in foreign‑funded contracts is narrowly confined to instances of arbitrariness, mala fides or concealment of grounds from the financier, and ITB Clauses 28.1 and 42.5 are not patently illegal where bidders part…

  • Tender process
  • Bid evaluation
  • Confidentiality clauses
  • Substantial compliance
  • Jica/jicc concurrence
  • Article 14
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Public procurement

M/S AGMATEL INDIA PVT. LTD. versus M/S RESOURSYS TELECOM & ORS.

The High Court erred in substituting its interpretation of the NIT for that of the tendering authority; the interpretation by NVS and its TEC that past-supply of Smart Phones did not qualify as 'same or similar category products' for a tender for Tablets was not shown to be arbitrary, irrational, mala fide or perverse and therefore the Court must defer to the authority; accordingly the High Court order disapproving the technical disqualification was set aside and the writ petition dismissed.

  • Interpretation of tender documents
  • Past performance criteria
  • Technical disqualification
  • Scope of judicial review
  • Contra proferentem
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Contract law

SOUTH EASTERN COALFIELDS LTD. & ORS. versus M/S. S. KUMAR’S ASSOCIATES AKM (JV)

Because the respondent did not furnish the required performance security nor sign the Integrity Pact as mandated by the NIT and LoI, and no work order or formal contract was executed, no concluded contract arose between the parties; accordingly appellants could only forfeit the bid security and could not recover the differential amount; the appeal was dismissed.

  • Letter of intent
  • Performance security
  • Integrity pact
  • Condition precedent vs condition subsequent
  • Forfeiture of bid security
  • Termination for non-compliance
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