1.The Government of Kerala issued administrative sanction for
the construction of Kasaragod Fishery Harbour and technical
sanction was issued by the Chief Engineer of the Harbour
Engineering Department for the construction of Breakwater
and Shore Protection Wall as part of the Rashtriya Krishi Vikas
Yojana. Following that, the Superintending Engineer, Harbour
Engineering, North Circle, Kozhikode invited pre-qualification
tenders for selecting contractors for that work. In response to
that tender notification, seven pre-qualification tenders were
received. They were scrutinised by the Superintending
Engineer and placed before the pre-qualification committee.
That committee verified the pre-qualification documents on
20.5.2009 and concluded that only three tenderers, including
the additional 6th respondent herein, have the required
experience as per the notice inviting tenders (hereinafter,
'NIT', for short) in executing similar nature of work amounting
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to more than 40% of the PAC of the work, in relation to which,
NIT was issued. This led to the issuance of Ext.P6 proceedings
by the Chief Engineer.
2.The petitioner is one among those found to be not eligible in
terms of the decision contained in Ext.P6. He, therefore, filed
this writ petition on 25.5.2009 challenging his exclusion at the
pre-qualification stage and obtained an interim order of stay of
actual award of contract. That interim order continues as of
now. With the passage of time, the official respondents
concluded the proceedings looking into the financial bids and
it was noticed that the additional 6th respondent had quoted
the lowest. The official respondents are yet to conclude on
their choice as to who shall be awarded the work. The
additional 6th respondent, on his own volition, applied for
impleadment in these proceedings, obviously since he was the
lowest tenderer. His application for impleadment was allowed.
On his coming on record, the writ petitioner stood also with
leave having been granted by this Court to amend the writ
petition challenging the pre-qualification clearance given to
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the 6th respondent. Thus, the scope of the writ petition was
enlarged to that extent.
3.In answer to the writ petition, the official respondents have
placed a counter affidavit through the Superintending
Engineer, the third respondent. The additional 6th respondent
has also filed counter affidavit and placed documents in
support of his contentions as to his eligibility for the pre-
qualification.
4.From the aforesaid, the issues that arise for decision in this
writ petition have to be identified as; (i) the sustainability of
the petitioner's challenge to his exclusion in the pre-
qualification round; (ii) his challenge to the 6th respondent's
inclusion after the pre-qualification and (iii) whether this Court
would, in exercise of Article 226 of the Constitution, interfere
in the matter.
5.Heard learned senior counsel for the petitioner, learned
Government Pleader and learned counsel appearing for the 6th
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respondent. Reference was made to a series of judgments of
the Apex Court laying down broad parameters of writ
jurisdiction and the exercise of authority in writ jurisdiction in
relation to contracts, particularly at the instance of a person
who has been found to be unqualified; and distinction between
contracts in public realm and in private realm, as also the
justiciability of the decision of a public authority in relation to
a contract. Similarly, references were made to certain
judgments touching on one of the crucial aspects arising for
decision in this case, to wit, the bone of contention on merits,
which is as to whether the work that the petitioner held out
as an experience is essentially one which is similar to the work
covered by the NIT. The decision of the Apex Court in Siemon
Public Communications Pvt. Ltd. v. Union of India [AIR
2009 SC 1204], Villianur Iyarkkai Padukappu Maiyam v.
Union of India [JT 2009(8) SC 339], Raunaq International
Ltd. v. I.V.R. Constructions Ltd. [AIR 1999 SC 393] and
Ramana Dayaram Shetty v. The International Airport
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Authority of India [AIR 1979 SC 1628] were referred to by
the learned counsel on either side.
6.On assimilation of the aforesaid precedents, the crux of the
law laid by the Apex Court is that contractual matters
involving Government and other public bodies are essentially
commercial transactions, however, that in such transactions,
the courts would loath interfere, except in cases where glaring
illegality resulting in arbitrariness is demonstrated though
procedural fairness, transparency and other yardsticks for
judicial review of administrative action should also stand
satisfied. The law, as settled by the Apex Court, is certain that
the courts, in judicial review in exercise of writ jurisdiction,
would not interfere unless the action taken by the public
authority is one contrasting the public interest and mere
competitive contentions on merits of the transaction would be
insufficient for the writ court to step in and interfere with the
policy decisions and commercial decisions of Government and
other public authorities in relation to contracts. The decision
in Raunaq International Ltd. (supra) was also specifically
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referred to, to point out that if the one challenging the award
of contract is shown to be one who is unqualified to be in the
field of choice, he shall not be heard to contend as against any
of the competitors. This is firstly because it is not for the writ
court to consider the competitive claims and to decide as to
who shall be awarded the contract. The jurisdiction is
confined to a review of the files to ascertain whether due
procedure has been followed and whether the administrative
decision has been taken with the required bench mark of
fairness, application of mind, reasonableness etc. and to see
that the decision awarding a contract is not ultimately
perverse, unconscionable to a reasonable prudent man and is
not one against public interest.
7.With the aforesaid principles of law in mind, it needs to be
taken that the work in question is one about which a multi-
level decision making process has been undertaken even
before finalising the tender documents. The prescription as to
pre-qualification and other relevant details have been fixed
after concluding on the nature of the contract and the official
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details as to drawings etc. The work relates to the construction
of breakwaters and shore protection wall. Adverting to Ext.P3
tender schedule, it can be seen that the construction of
breakwaters and shore protection wall for the Kasaragod
Fishery Harbour gets classified into the construction of North
Breakwater, South Breakwater, Shore Protection Wall and
Construction of Approach Road to the breakwater, the details
of which are put in four Appendices, A to D.
8.The petitioner attacks his exclusion in the pre-qualification
round on the plea that while the pre-qualification as
prescribed was that one should have satisfactorily completed
at least one major similar civil work, he has been excluded on
the premise that the previous work done by him, as evidenced
by Ext.P4, is not a similar work. This is ultimately the issue on
which the petitioner's claim for being considered as qualified
has to be tested.
9.In support of the writ petition, learned senior counsel for the
petitioner referred to the decision of the Apex Court in Nat Steel Equipment Pvt. Ltd. v. Collector Of Central Excise.
[AIR 1988 SC 631] to show that the word "similar" is a
significant expression and does not mean identical. It means,
corresponding to or resembling to any other, somewhat liking
or having a general likeness. The word "similar" is one of a
wider impact than the word "same" and therefore, it is argued
on behalf of the petitioner that the work evidenced by Ext.P4 is
one which should have been treated as similar to the work
covered by the NIT. The decision of the Apex Court in Dutta
Associates Pvt. Ltd. v. Indo Merchantiles Pvt. Ltd. [1997
(1) SCC 53] was cited to state that the procedure to be
followed in the matter of acceptance of a tender and the
consideration of the tenders received should be transparent,
fair and open and that whatever procedure the Government
proposes to follow in accepting the tender must be clearly
stated in the tender notice.
10.Per contra, learned counsel appearing for the 6th respondent,
supporting the exclusion of the petitioner at the pre-
qualification stage, pointed out that a study of Ext.P4 as also
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another certificate relied on by the petitioner along with his
tender document which is available at page 71 of the
petitioner's original tender document as placed before this
Court by the writ petitioner, would categorically show that the
work which the petitioner claims to have done earlier for the
TIDEL PARK Limited has no comparison with the work covered
by the NIT and elaborately described under the tender
schedule Ext.P3.
11.The decisions of the Supreme Court referred to earlier stand
to advise me as precedents in law, that in matters relating to
policy, including expertise in technical matters, it is not for the
Court to substitute its wisdom. If the Court is to design the
breakwater or to consider the competence of a person to
construct a breakwater and a sea wall, that would, only be, not
part of judicial function, but would be usurping the technical
function of the engineers. Such an exercise would only be to
step into the arena which is exclusively for the Government
and the departmental officials who are treated to be experts to
deal with such matters. This is the logic of saying that the
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courts have only to ensure that those who are bestowed with
public authority have done what they ought to do and what is
expected of them in the context of their public function.
12.Ext.P4 which is available at page No.69 in the tender
document of the petitioner and another certificate dated
6.9.2008 which is available at page 71 of that document would
show that the petitioner carried out the work for TIDEL PARK
Ltd. That work was called "Mass Earthwork excavation for
Information Technology Park" at Villankurichi, Coimbatore.
Ext.P4 shows that the contractor (petitioner) has carried out
the handling of 2,10,000 Cum of Hard Rock. This item
includes the Rock Blasting, Loading of blasted rubble to
trucks, Transportation of rubble of various sizes and dumping
the rubble at the earmarked areas. The certificate at page 71
of the petitioner's tender document gives a further description
classifying the work into four categories, quantum wise. The
first is earth work excavation in all kinds of soil except in
disintegrated/hard rock; second is excavation in
disintegrated/weathered/soft rock by mechanical means and
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disposal; third is general excavation in hard rock with
fissures/boulders by chiseling/wedging/breaking by use of
approved chemicals to the required level and disposal and the
fourth is excavation in hard rock/boulders with fissures/
boulders by controlled blasting to the required level and
disposal. Reverting to Ext.P3, the tender schedule of the
petitioner covered by NIT, of which we are concerned, as
already noticed, the work gets classified into four. Appendix A
relates to South Breakwater and Appendix B relates to North
breakwater. It is clear that the work includes supply of
granite, core of rubble etc. and separating them in uniform
layers at such thickness as is prescribed in the tender schedule
to form different layers called filter layers, armour layers etc.
to obtain the structure which has to ultimately stand in the
sea. The drawings which were placed before me in the
presence of counsel and explained over by Sri.K.Abdul Majeed,
Assistant Executive Engineer, Office of the Superintending
Engineer, amply show that the technical expertise that has to
go into the work covered by NIT is of a highly sophisticated
nature which require planned placing and laying of different
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sizes of materials, including granite, different similar pieces of
blasted rocks, handling huge and heavy pieces ranging from
1 to 5 tones and also of laying them in such a manner as is
required for the technical purpose of sustaining finished
breakwaters in the sea to obtain the objective sought to be
achieved, viz., augmentation of the Kasaragod Fishery
Harbour. This cannot be compared, even from a common
man's view point, to what could be seen from the certificate at
page 71 of the tender document of the petitioner which would
show that the thrust of the expertise gained was in the matter
of excavation and not in the matter of laying. The word
"disposal" used in the certificate at page 71 to the petitioner's
tender document clearly indicates that the thrust was on the
excavation and the disposal was to be made by dumping the
rubble at the earmarked areas as evidenced by the second
paragraph of the certificate. This by itself makes it crystal
clear that the expertise that the petitioner holds out, was in
relation to excavation of granite etc. rather than laying of
granites, rubble etc of different sizes in terms of any particular
technical prescription. Beyond that is the fact that the work
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projected by the petitioner as experience was carried out, not
in the sea but on land, while the work covered by NIT is to be
carried out in the sea. With this fact situation, it is not right
for the writ court to say that the decision making process has,
in any manner, been deflected or has been done in an arbitrary
fashion to exclude the petitioner from the field of choice. If I
venture to look into the plea on facts, as regards the
petitioner's challenge to the pre-qualification of the addition
6th respondent, the fundamental plea is that the material
relied on as a certificate of the previous work done by the 6th
respondent does not, in fact, satisfy the bench mark prescribed
in the NIT. The petitioner's contention is that Ext.P10
certificate shows only that the 6th respondent had conveyed the
entire agreement quantity well within the agreement period of
completion. Ext.P10 shows that the agreement quantity was
2,27,472 metric tons and the executed quantity is 2,86,839
MT. This obviously shows that after the initial agreement,
there was a further escalation in the quantum of the work to
be done in so far as it relates to the contract covered by
Ext.P10 certificate. What was relevant is not the excess
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quantity or additional work, but the fact that the 6th
respondent had completed the agreed quantity of work before
the cut off date. Ext.P10 shows that he had "conveyed the
entire agreement quantity". If I were to advert to Exts.P15
and P16 produced by the petitioner himself, Ext.P16 contains
the clear statement by the Government of Puducherry that the
6th respondent herein had completed the quantum of work as
per the agreement before the extended period. Therefore,
there is no ambiguity about what has been certified by the
Government of Puducherry. The certification is regarding the
completion of the work and not merely supply of any material.
13.This leaves two issues. Firstly, it is pointed out by the
petitioner that the work carried out by the 6th respondent for
the Puducherry Government, as per Ext.P4 certificate, had
only a pre-qualification of some work on land and not on sea.
That would have been a matter for the Government of
Puducherry to take note of. At any rate, this is an irrelevant
material or fact for the case in hand. Secondly, it is pointed
out that the materials dug out by the petitioner through the
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machinery of the Right to Information Act would disclose that
the work done by the 6th respondent for the Puducherry
Government is itself subject matter of some vigilance enquiry
etc. That is not a matter to gain attention of the writ court
challenging the exclusion of the petitioner at the stage of pre-
qualification. Learned Government Pleader has rightly
indicated that such a material would not be left unnoticed by
the Government as and when the question of awarding and
concluding the contract would be ultimately considered.
14.The further plea of the petitioner is that the financial bid,
when opened, showed a difference of 2 = crores between the
offer made by the petitioner and the offer of the 6th
respondent. It is pointed out that the petitioner's bid would
have been the lowest. It is not the principle of law that the
lowest bid is to be accepted. The first and foremost is the
nature of the bid, which the case in hand, is the pre-
qualification bid. There is no mandate that the Government
shall always accept the lowest rate. It will be well within the
prudence and competence of the Government to accept even
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higher rates provided circumstances warrant, having regard to
the technical and other relevant aspects which may arise for
consideration.
For the aforesaid reasons, this writ petition fails. The same is
accordingly dismissed. No costs.
Sd/-
THOTTATHIL B.RADHAKRISHNAN,
Judge
kkb.5/9.