Professional Documents
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Ordjud 49 466003
Ordjud 49 466003
VERSUS
…
Mr. Venkatesh Dhond, Sr. Counsel a/w Mr. Bimal Rajasekhar a/w Ms.
Rashmi Raghavan for Petitioner.
Mr. Narendra Walawalkar, Sr. Advocate a/w. Mrs. Shilpa Redkar for
MCGM.
Mr. Virag Tulzapurkar, Sr. Advocate a/w. Amir Arsiwala i/b. Nupur Shah for
Respondent No.2.
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Mr. Vineet Naik, Sr. Advocate a/w. Mr. Dhaval Deshpande i/b. Yash
Jariwala for Intervenor in IA/876/2023
1. Rule. Rule made returnable forthwith. With the consent of the parties,
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e. for such further and other reliefs, as this Hon’ble Court may
deem fit and proper in the nature and circumstances of the case.”
4. Facts of the case as captured from the pleadings are that petitioner
services for the last 29 years and claims to have executed other high value
projects. Petitioner No. 2 is its director. For the sake of brevity and
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‘Petitioner’. Petitioner claims to have qualified for the same tender issued in
of rehabilitation of storm water arch drains which are in existence for over
100 years and issued e-tender notice on 27th December 2022. The work for
which the bids are invited is ‘Rehabilitation of existing about 100 years old
participated in pre-bid meeting held on 3rd January 2018 and raised several
process. The last date for submission of bids was revised to 1 st February
2023, opening of packet ‘A’ and packet ‘B’ scheduled on 2 nd February 2023
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technology’ was deleted. Similarly in the heading ‘scope of work’ the words
Trenchless Technology’.
6. Petitioner did not submit its bid till the last date of 1 st February 2023.
inquiry in the matter of floating of tender and requested for the tender being
put on hold till outcome of the inquiry. On 2nd February 2023. MCGM
the eligibility criteria. MCGM further went ahead and opened the financial
claims to have been found L1 upon opening the financial bids and
the present petition seeking cancellation of the tender process and direction
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would submit that use of Geopolymer Technology for execution of the work
with responded No.2 alone to bid in the tender process. That the condition
bidders not intending to use the technology of Respondent No.2 are being
thrown out of tender process thereby restricting the bidding process to few
attention to letter dated 1st February 2018 where the MCGM had rejected
rejected similar technology in the year 2018, the MCGM could not have
8. Mr. Dhond would invite out attention to tender invited for same work in
the year 2022 where the technology specified was ‘structural standalone
type Il liner’. That in the past tender, there was no limitation of use of
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impugned tender, Mr. Dhond would contend that the MCGM went to the
buttressed by the fact that all 3 eligible bidders have MOU with respondent
Rs.37400 per sq. mtr, as against the rate of Rs. 21025 per sq. mtr. fixed in
view of advice of experts like VJTI, IIT Bombay and TAC of respondent
No.1. He would submit that the IIT report relied upon by MCGM was
procured by a third party vendor M/s Rohitash Rajesh Jaiswal Pvt. Ltd.,
agency to IIT Bombay for procuring report is unknown. Mr. Dhond would
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That the confirmation of earlier IIT’s report of 2021 was sought by Municipal
2022. That the VJTI’s report was received by the Municipal Corporation on
on the following date i.e. 24th November 2022. MCGM thereafter took
the work. Mr. Dhond would submit that speed with which the decision for
use of Geopolymer Technology was taken within 3-4 days would indicate
of expert opinions was merely a farcical show. Referring to the IIT and
VJTI’s report, Mr. Dhond would submit that the opinion is in respect of
the brand of respondent No.2. Mr. Dhond would also invite our attention to
the note on the basis of which decision was taken for use of Geopolymer
February 2023. He would submit that the note envisages visit by chosen
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alone. He would further highlight the fact that MCGM obtained rate analysis
Respondent No. 2 alone. Mr. Dhond would therefore submit that the
irrationality and bias and therefore the same deserves to be set aside. In
support of his contentions, Mr. Dhond would rely upon the following
judgments.
i) Shimnit Utsch India Private Ltd. & Anr. Vs. West Bengal
Transport Infrastructure Development Corporation Ltd. &
Ors.1
filing two affidavits in reply dated 17th February 2023 and 22nd February
2023. Mr. Walwalkar, the learned senior advocate appearing for Municipal
Corporation would question the locus standi of petitioner to file the present
petition. He should submit that the petitioner has not submitted its bid in
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participated in the pre-bid meeting and raised queries therein, chose not to
submit its bid. That the present petition is filed long after last date of
submission of bid and opening technical bids. That the same filed only on
the date on which the financial bids were opened. That despite being aware
December 2022, petitioner failed to challenge the same for a long time up
tendering authority alone is the best judge. That this court would not
technology for execution of the work. He would invite our attention to the
experts’ opinions. He would submit that IIT’s report of February 2021 was
brought to the notice of MCGM, after which MCGM requested IIT to confirm
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the same by its letter dated 20th November 2022. Thereafter MCGM itself
solicited services of IIT seeking its opinion on 29 th September 2022 and that
IIT responded on 11th November 2022. That MCGM thereafter obtained the
rates from 3 dealers. He would therefore submit that the decision for use of
experts.
13. Mr. Walwalkar would further submit that the work undertaken by
old storm water arch drains, and the work is urgently required to be
of Section 41 of the Specific Relief Act Mr. Walwalkar would urge that this
decisions.
respondent No.2 would also oppose the petition. He would submit that the
prayers in the petition are couched in such a manner that would completely
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limited. That the employer is the best judge to decide the exact technology
to be employed for execution of the work and that this court would be loath
to interfere with the decision of the tendering authority. He would rely upon
15. Mr. Vineet Naik, the learned senior advocate appearing for Intervener
L1 after opening the financial bids (packet C). He would highlight the delay
on the part of petitioner in filing the the present petition, which is filed only
support of his contention Mr. Naik would rely upon following judgments:
16. Rival contentions of the parties now fall for our consideration.
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2021, no particular technology was specified and all that was provided was
and employed in the field.’ There is no dispute to the factual position that
what is specified is the technology and not a particular brand. The work in
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20. Thus, the scope of work in respect of which impugned tender notice
21. Petitioner has drawn an inference that even though the word
tender notice.
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the first blush, the same is unfounded. True it is that the word ‘GeoSpray’
was used in Section 7 of the tender notice. However MCGM later issued
technology. Even though the words ‘GeoSpray Geopolymer’ are used in the
reports of IIT and VJTI, the same are used essentially to opine about
seek to opine about the brand itself. In this regard, we reproduce IIT’s
opinion:-
4. Opinion
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23. IIT has thus compared MWSL and Geopolymer technologies and the
has compared the 4 technologies and opined that the geopolymer lining
system is best suited for rehabilitation of storm water arch drains over the
technologies, IIT and VJTI might have used brand of respondent No.2.
analysis for preparation of tender document. It is not that the rates are
procured from the proposed bidders. They are procured from dealers
be drawn that the MCGM has selected GeoSpray brand for execution of its
Respondent No. 2 based on the speed of decision, is belied by the fact that
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MCGM had already contacted IIT Mumbai and engaged its services for
opinion. MCGM has not blindly relied upon IIT’s report of February 2021
the Specific Relief Act, 1963 are also required to be borne in mind
436) which shows that ‘GeoKrete’ is another brand which also uses
brand for use of geopolymer technology for execution of work, it would have
Mr. Dhond has fairly admitted that Petitioner could procure the technology
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was the only entity to offer geopolymer technology (which does not appear
interfere in tender matters. It is also equally well settled that the tendering
authority is the best judge to determine the tender conditions. This court
would not sit as an appellate authority over the tender conditions prescribed
to be used for execution of the work. We are of the considered view that
that MCGM is entitled to do so and we would not sit in appeal over that
decision.
26. In catena of judgments, the Apex Court has repeatedly held that the
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was challenged on the ground that only two bidders had the license to use
that patented technology. The Apex Court held in paragraph No.45 and 46
“45. We are concerned with sale of liquor. The objective has been
set out by the State Government, i.e., use of such technology as
would prevent spurious liquor from being sold. It is a well-known fact
that a large revenue collection comes in Tamil Nadu through sale of
liquor. It thus must be left to the State Government to see how best to
maximize its revenue and what is the technology to be utilized to
prevent situations like spurious liquor, which in turn would impede
revenue collection, apart from causing damage to the consumers.
(emphasis ours)
27. In Uflex the Apex Court has also discussed general principles on
scope of judicial review in tender matters and has held in paragraph 2 and 3
as under:-
“2. The judicial review of such contractual matters has its own
limitations. It is in this context of judicial review of administrative
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28. In Montecarlo Ltd. (supra) the Apex Court has held that discretion
has to be conceded to the authorities who have to enter into contract giving
them the liberty to assess the overall situation for the purpose of taking a
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19. In Jagdish Mandal v. State of Orissa and Ors the Court has
held that a contract is a commercial transaction. Evaluating tenders
and awarding contracts are essentially commercial functions.
Principles of equity and natural justice stay at a distance. If the
decision relating to award of contract is bona fide and is in public
interest, courts will not, in exercise of power of judicial review,
interfere even if a procedural aberration or error in assessment or
prejudice to a tenderer, is made out.
21. In B.S.N. Joshi & Sons Ltd. v. Nair Coal Services Ltd. and Ors.
a two-Judge Bench, after referring to series of judgments has culled
out certain principles which include the one that where a decision has
been taken purely on public interest, the court ordinarily should apply
judicial restraint.
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22. In Michigan Rubber (India) Ltd. (supra) the Court referred to the
earlier judgments and opined that before a court interferes in tender
or contractual matters, in exercise of power of judicial review should
pose to itself the question whether the process adopted or decision
made by the authority is mala fide or intended to favour someone or
whether the process adopted or decision made is so arbitrary and
irrational that the judicial conscience cannot countenance. Emphasis
was laid on the test, that is, whether award of contract is against
public interest.
29. In Agmatell India Pvt. Ltd. (supra) the Apex Court has held that if
the court would prefer to keep restraint. It is further held that even if
to the constitutional courts, that would not be a reason for interfering with
whimsical.
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30. In the present case, we would not interfere with MCGM’s opinion
the field. The decision is taken based on opinion of experts. Storm water
arch drains which are sought to be rehabilitated are more than 100 years
old. Mumbai receives heavy monsoon every year and use of best possible
other available technology would not be a valid reason to eschew the better
execution of the work and has also obtained opinion of experts. Petitioner
cannot insist that MCGM cannot choose that technology must and opt for
letter would indicate that the design for GeoSpray Geopolymer technology
consultant, which formula did not ensure the structural standalone type II
design as per guidelines. The formula of the consultant was held to be not
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that the Municipal Corporation had altogether rejected the use of GeoSpray
rehabilitation of man entry sewer lines. Based on the opinions received from
experts, the Municipal Corporation has now formed an opinion that use of
32. Another aspect which is required to be borne in mind is the fact that
the petitioner has not submitted its bid in pursuance of the impugned tender
respondent No.2 or from other entities who offer the same. Petitioner could
the pre-bid meeting, it chose to stay away from the tender process. Having
Division Bench of this Court in A.M. Yusuf (supra) is apposite. This court
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34. The stage at which petition is filed also assumes importance. The
pre-bid meeting of 3rd January 2023 and even after MCGM maintained use
queries on 24th January 2023, Petitioner chose not to challenge the tender
condition immediately. It further waited till the technical bids (packet A and
packet B) were opened on 2nd February 2023. It again waited for opening of
financial bids (packet C) on 10th February 2023 and on the same day, filed
the present petition. The action of the petitioner in not participating in the
tender process by submitting its bid and waiting for reasonably long period
from 27th December 2022 to 10th February 2023 to file present petition is
35. What remains now is to deal with the judgments cited by Mr. Dhond.
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someone, the court can interfere. The Apex Court held in paragraph No.24
as under:-
9 Associated Provincial Pictures Houses ltd. Vs. Wednesbury Corp. (1948) 1 KB 223
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29. The Authority has the right not to accept the highest bid
and even to prefer a tender other than the highest bidder, if
there exist good and sufficient reasons, such as, the highest
bid not representing the market price but there cannot be any
doubt that the Authority's action in accepting or refusing the bid
must be free from arbitrariness or favoritism.”
Again there can be no dispute to the proposition that this court would
be justified in interfering in matters where the tender condition is
tailormade to suit a particular bidder. In the present case however, it
is not petitioner’s contention that prescription of Geopolymer
technology is for suiting a particular bidder. It is petitioner’s case that
prescription of that technology is to suit the manufacturer (who is not
a bidder). We have already held above that Geopolymer technology
can be provided by other manufacturers as well. Even if a particular
manufacturer was to be prescribed by MCGM, it could not be said
that the condition was tailormade to suit a particular bidder when all
bidders are in a position to procure the technology from such
manufacturer. The judgment therefore has no application to the
present case.
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36. In prayer clause (c), petitioner has sought setting aside award of
contract to any bidder alied with or who has entered into MOU with
Respondent No.2. Mr. Tulzapurkar has conuntrued this prayer to mean an
absolute bar against Respondent No.2 from providing it’s technology to any
bidder. However since Mr. Dhond has not stretched his submissions to seek
such an absolute bar against Respondent No.2, we have not heard Mr.
Tulzapurkar on this issue. Also of relevance is the fact that the contract is
yet to be awarded to any bidder and therefore prayer clause (c) is otherwise
premature. If the technology of Respondent No.2 suits the specification in
the tender document, it is for MCGM to accept the same.
39. There was no stay operating during the pendency of the writ petition.
Only statement was made by the learned senior advocate for the
Corporation. Moreover, the petitioners have not participated in the tender
process.
40. In view of that, request made for stay of the judgment is rejected.
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