Expert Evaluation Of Tender Should Not Be Second Guessed By Writ Court Unless There Is Mala Fides & Arbitrariness : Supreme Court

The Supreme Court has observed that the expert evaluation of a particular tender, particularly when it comes to technical evaluation, is not to be second-guessed by a writ court, unless arbitrariness or mala fide on the part of the tendering authority is alleged.

The Inspector General of Police, Kashmir Zone, Zonal Police HQR's Kashmir, Srinagar invited online tenders (e-tenders) from reputed transporters, registered firms/associations for the supply of various types of commercial vehicles (without fuel) for the carriage of troops and equipment for the Financial Year 2020-2021. Galaxy Transport Agencies, Contractors, Traders, Transports and Suppliers and d M/s New J.K. Roadways, Fleet Owners and Transport Contractors submitted their tenders.  The Tender Opening Committee found that JK Roadways, and Associated Contractors did not meet the qualifying requirements of the technical bid. Galaxy Transport Agency was considered technically eligible and was allotted the contract. This allotment was challenged before the Jammu and Kashmir High Court by JK Roadways by filing a writ petition. Though the single bench dismissed the petition, the Division Bench allowed the appeal filed by JK Roadways by holding that it was wrongly disqualified by the tendering authority.

In appeal, the bench comprising Justice RF Nariman, Navin Sinha and KM Joseph observed that the authority that authors the tender document is the best person to understand and appreciate its requirements, and thus, its interpretation should not be second-guessed by a court in judicial review proceedings. In this regard, the court referred to these judgments: Afcons Infrastructure Ltd. v. Nagpur Metro Rail Corporation Ltd., 2016 (16) SCC 818, Bharat Coking Coal Ltd. v. AMR Dev Prabha, Silppi Constructions Contractors v. Union of India, Jagdish Mandal v. State of Orissa, (2007) 14 SCC 517, Montecarlo Ltd. v. NTPC Ltd., 2016 (15) SCC 272. Allowing the appeal, the bench observed:

" Insofar as Condition No. 27 of the N.I.T. prescribing work experience of at least 5 years of not less than the value of Rs. 2 crores is concerned, suffice it to say that the expert body, being the Tender Opening Committee, consisting of four members, clearly found that this eligibility condition had been satisfied by the Appellant before us. Without therefore going into the assessment of the documents that have been supplied to this Court, it is well settled that unless arbitrariness or mala fide on the part of the tendering authority is alleged, the expert evaluation of a particular tender, particularly when it comes to technical evaluation, is not to be second-guessed by a writ court."

CASE: M/S GALAXY TRANSPORT AGENCIES, CONTRACTORS, TRADERS, TRANSPORTS AND SUPPLIERS vs. NEW J.K. ROADWAYS, FLEET OWNERS AND TRANSPORT CONTRACTORS & ORS. SLP (CIVIL) NO. 12766 OF 2020

CORAM: Justice RF Nariman, Navin Sinha and KM Joseph 

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