Maharashtra Housing Development Authority vs Shapoorji Pallonji and Company Pvt. Ltd.
- SCC(2018) 3 SCC 13
- Neutral2018 INSC 134
- AIRAIR 2018 SC 945
- SCR[2018] 2 SCR 261
Ratio decidendi
The rule this decision rests on
Where a bid submitted in an e-Tendering system is invalid because the bidder failed to complete the mandatory procedural requirement of pressing the 'freeze button', and the system has generated no acknowledgement of submission, a High Court cannot issue directions requiring that the invalid bid be retrieved and processed as a valid bid, particularly where the portal developer (NIC) has certified on affidavit that retrieval is not technically feasible under Government of India Guidelines and the bidder had adequate opportunity to seek assistance from the system administrator but failed to do so.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
first respondent – writ petitioner and
Shri A.N.S. Nadkarni, learned ASG
appearing for the NIC.
6. The matter lies within a short
compass. The first issue that arises for
a decision is whether the bid document(s)
uploaded by the first respondent – writ
petitioner can be retrieved or is
irretrievably lost. The second issue is
- assuming the bid document(s) submitted
by the first respondent is retrievable,
whether the first respondent would be
entitled to a consideration of the bids
submitted by it on merits as has been
directed by the High Court.
7. To answer the first issue this
Court by order dated 18th January, 2018 has
directed the NIC to file an affidavit to
answer the following query:
“Whether the data uploaded by the respondent - bidder – Shapoorji Pallonji & Company Private Limited, receipt of 6
which was not acknowledged on account of his alleged failure to press the ‘Freeze Button’, is irretrievably lost by this time and cannot be retrieved under any circumstance?”
8. Pursuant to the aforesaid order
dated 18th January, 2018 the NIC has filed
an affidavit dated 23rd January, 2018
wherein it has been stated that the data
uploaded by the first respondent cannot be
retrieved by the NIC and Maharashtra
Housing Development Authority jointly or
severally under any circumstances in the
present e-Tendering system with prevailing
Government of India Guidelines. In
paragraph 7 of the aforesaid affidavit
dated 23rd January, 2018 the NIC has also
stated as under:
“7. As far as NIC is concerned it cannot access the invalid bid documents since it has neither the keys nor the approved process to download the same pertaining to any packet/envelop/cover. Even though keys are available with Maharashtra Housing Development Authority 7
(Petitioner), but even with that keys the bid documents cannot be retrieved at this time as the bid opening event has already been concluded. Thus bid documents cannot be retrieved under any circumstances from the e-Tendering system.”
9. The above apart, in the counter
affidavit filed by the NIC it has been
stated that the bid uploaded by the first
respondent was invalid as the
representative(s) of the said respondent
did not press the ‘freeze button’ which
alone would have completed the bid
process. In this regard, the NIC has
further stated that on 27th July, 2017
there was no problem in the server during
the relevant time period and as many as
427 bid documents (pertaining to other
tenders) were uploaded between 1200 hours
to 1300 hours on the said date i.e. 27th
July, 2017. The NIC in its affidavit has
further stated that if the first
respondent had uploaded the documents at 8
1216 hours on 27th July, 2017 and it had
not received the bid submission
acknowledgement it still had 44 minutes to
contact the NIC for help which help was
not sought. In this regard, the NIC has
further stated that the first respondent –
bidder had participated in e-Tendering in
Maharashtra Government portal earlier and
thus it was familiar with the entire
process.
10. If the NIC, which had developed
the e-portal in which bids were to be
submitted and maintenance and upkeep of
which was its responsibility, had stated
in its affidavit what has been indicated
above, we do not see how the repeated
statements made on behalf of the first
respondent that the bid documents can
still be retrieved, if required by
traveling beyond the Government of India
guidelines, should commend to us for
acceptance. The opinion rendered in this 9
regard by the consultant of the first
respondent Mr. Arun Omkarlal Gupta on
which much stress and reliance has been
placed by the first respondent could
hardly be determinative of the question in
a situation where the NIC which had
developed the portal had stated before the
Court on affidavit that retrieval of the
documents even jointly with Maharashtra
Housing Development Authority is not
feasible or possible. That apart, lack of
any timely response of the first
respondent when the system had failed to
generate an acknowledgement of the bid
documents in a situation where the first
respondent claims to have pressed the
‘freeze button’; the generation of
acknowledgements in respect of other
bidders and the absence of any glitch in
the technology would strongly indicate
that the bid submitted by the first
respondent was not a valid bid and the
directions issued by the High Court in 10
favour of the first respondent virtually
confers on the said respondent a second
opportunity which cannot be countenanced.
11. In the above view of the matter,
we are inclined to take the view that the
High Court was not correct in issuing the
directions extracted above as contained in
paragraph 15 of the impugned
judgment/order dated 28th September, 2017.
The same are, therefore, interfered with.
The appeal is allowed accordingly.
....................,J.
(RANJAN GOGOI)
....................,J.
(R. BANUMATHI)
NEW DELHI FEBRUARY 12, 2018
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