TaxTMI 
TaxTMI 
TaxTMI 
2004 (3) TMI 791
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....cy to the students from class VIth to Xth and teaching of computer science and informatics practices subjects to plus two stage, as per CBSE syllabus. In the first phase for the year 2000-2001, 115 schools were taken up for imparting computer education. Tenders were called from the firms having a turnover of Rs. 2 crores. As per terms of tender notice the firm was to provide hardware to establish the lab in the concerned schools. The total contract was for a sum of Rs. 14.62 crores. Since the lowest tenderer was not in a position to carry out the project in 115 schools, the contract was divided amongst four parties. In the year 2001-2002 the turn over clause was amended, instead Rs. 2 crores the turn over of Rs. 5 crores was prescribed. Because of the several representations filed the tender was cancelled and fresh tenders were invited from the firms having a turnover of Rs. 2 crores or above. The tender was for 275 schools, the total cost of the project being approximately Rs. 30 crores. The lowest tenderer was again not in a position to take up the entire project. The other seven tenderers agreed to lower their prices to bring it at par with the rate of the lowest tenderer. Thus....
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....ure, the appellants were permitted to go ahead with the processing of the tender applications but no contract was to be awarded without taking further orders from this court. This order was modified on 14th April, 2003. It was directed that the tender bids of all the respondents be considered without reference to the financial qualification of the turnover of Rs. 20 crores. However, the acceptance of the bid was kept in abeyance till the passing of the final order in the appeals. In compliance with the aforesaid directions letters were sent to all the 13 bidders/parties for opening of the commercial bids on 30th July, 2003 at 3.30 P.M.. Technical bids of four companies, i.e., Tata Infotech Ltd., Educomp Datamatics Ltd., UPTEC Computer Consultancy Ltd., Sterlite Foundations were rejected after scrutiny by the tender opening committee as these firms did not fulfill the criteria laid in the tender notice. The financial bids of other 9 companies were opened and the bid given by M/s SSI Limited was found to be the lowest. Interlocutory Application Nos. 1 to 5 of 2003 were filed for placing these facts on record. Facts which emerged from the opening of the bids were that the four compan....
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....use the invitation to tender is in the realm of contract. Normally speaking, the decision to accept the tender or award the contract is reached by process of negotiations through several tiers. More often than not, such decisions are made qualitatively by experts. (5) The Government must have freedom of contract. In other words, a fair play in the joints is a necessary concomitant for an administrative body functioning in an administrative sphere or quasi-administrative sphere. However, the decision must not only be tested by the application of Wednesbury principle of reasonableness (including its other facts pointed out above) but must be free from arbitrariness not affected by bias or actuated by mala fides. (6) Quashing decisions may impose heavy administrative burden on the administration and lead to increased and unbudgeted expenditure. [Emphasis supplied] In Air India Limited vs. Cochin International Airport Limited [2000 (2) SCC 617], this Court observed: "The award of a contract, whether it is by a private party or by a public body or the State, is essentially a commercial transaction. In arriving at a commercial decision considerations which are paramount are com....
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....e. Directorate of Education, Government of NCT of Delhi had invited open tender with prescribed eligibility criteria in general terms and conditions under tender document for leasing of supply, installation and commissioning of computer systems, peripherals and provision of computer education services in various government/government aided senior secondary, secondary and middle schools under the Directorate of Education, Delhi. In the year 2002-2003, 748 schools were to be covered. Since the expenditure involved per annum was to the tune of Rs. 100 crores the competent authority took a decision after consulting the technical advisory committee for finalisation of the terms and conditions of the tender documents providing therein that tenders be invited from firms having a turnover of more than Rs. 20 crores over the last three years. The hardware cost itself was to be Rs. 40-45 crores. The government introduced the criteria of turnover of Rs. 20 crores to enable the companies with real competence having financial stability and capacity to participate in the tender particularly in view of the past experience. We do not agree with the view taken by the High Court that the term provi....