Judicial Scrutiny of Tender Evaluation & Objections

 

Judgment dated 18.8.2025 of the Division Bench of the Bombay High Court in Writ Petition No.3079 of 2025 of M/s Watergrace Products  Vs. Municipal Corporation of City of Jalgaon and others with connected matter

 Judicial Scrutiny of Tender Evaluation & Objections

 On 13.12.2024, the Respondent No.1 Jalgaon Municipal Corporation issued tender notice for collection and transportation of municipal waster through Ghanta Gadi.  This involved supply of 500 workers also.

 On 29.1.2025, in the technical evaluation of the tenders, three bidders were declared as qualified and BVG India Limited was shown as L-1.

 The challenge of the petitioner Watergrace is the alleged tinkering with and misapplication of the formula for deciding L-1 and secondly, alleged suppression of blacklisting of the petitioner BVG limited.

HELD that the decision to allot tender after negotiations and which was most beneficial to the Corporation is legal and valid in the interests of public exchequer.  There has to be enough play in the joints for the Corporation to take proper decision to reduce the cost and provide maximum benefit to the public. Such cost-benefit analysis within the terms of the tender can certainly be permitted to the Municipal Corporation.

 Blacklisting for a limited period & stayed by the Court – whether Suppression

 Clause 6 of the Annexure 3 of the tender notice require a statement that the bidder has not been placed on blacklist. The tenderer qualified as L-1 has suppressed the said information.

 HELD that purport of such a clause can also be interpreted to mean that at the time when the bid is being submitted, the bidder is not placed in any blacklist.  It is a possible interpretation and there is sufficient material placed on record by the petitioner to show that the order of blacklisting being relied upon was for a limited period and in any case has been stayed by the competent Court.  In such circumstances, it cannot be said that there was a misleading statement made on behalf of the petitioner.