SOM PROJECTS PVT. LTD. Vs. UNION OF INDIA

JUDGEMENT

(1.) Faced with a shortage of accommodation for married sailors in Mumbai, the Military Engineer Services (Chief Engineer (Navy), Colaba, and Engineer-in-Chief, Ministry of Defence) issued a tender for building construction of a building to accommodate married sailors. The Petitioner submitted the lowest bid, with Respondent No. 3 as the second lowest bidder. The Authorities decided retender the process. The Petitioner has challenged this decision and seeks a writ of mandamus to accept their bid.

(2.) The subject contract for Engineering, Procurement and Construction (EPC) of Deficient Sailors Married Accommodation in Mumbai was published by Respondent Nos. 1 and 2 in June 2022. The bidding period was extended, and bids were required to be submitted by 15/2/2023 as per the Notice Inviting Tender (NIT). The Petitioner submitted its bid on the specified date. Five bidders, including Respondent No. 3, participated in the tender. The Petitioner claims that its technical bid was accepted on 14/3/2023, and it was declared eligible for the financial bid stage. The Petitioner's financial bid, being the lowest, was treated as of L1 bidder. The Financial Bid Opening Summary was published on Respondent Nos. 1 and 2's website on 16/3/2023. The tender validity period was initially until 16/5/2023, but Respondent Nos. 1 and 2 requested an extension until 30/6/2023, which the Petitioner agreed to. However, on 17/5/2023, the Petitioner expressed dissatisfaction with the delay despite meeting all requirements and qualifications. The Petitioner learned that Respondent No. 3 had filed a complaint on 17/3/2023, which was being considered and potentially impacting the decision in favour of the Petitioner. Concerned about the outcome, the Petitioner initially filed a Writ Petition (C) No. 7745 of 2023 before the Delhi High Court on 29/5/2023 but later withdrew it due to objections over jurisdiction. The present Petition was subsequently filed by the Petitioner.

(3.) On 29/5/2023, Respondent Nos. 1 and 2 responded to the Petitioner's letter dtd. 17/5/2023, for notifying the Petitioner that the Accepting Officer has decided to reissue the tender in the best interest of the State. The Petitioner was reminded of the clauses in the Letter of Intent, NIT, and the Tender, which state that Respondent Nos. 1 and 2 were not obligated to accept the lowest or any bid received.