Decision based on lack of consent for bid validity extension; serious civil consequences of blacklisting highlighted.
In a significant ruling, the Patna High Court has quashed the blacklisting of M/s. Universal Agro Corporation Ltd. by the Bihar Police Building Construction Corporation (BPBCC) for an indefinite period. The Division Bench, comprising Acting Chief Justice Sudhir Singh and Justice Rajesh Kumar Verma, found the blacklisting action unsustainable due to the lack of consent from the petitioner for extending the bid validity period as required by the tendering authority's own communication.
The case revolved around a tender notice issued by BPBCC for the construction of police station buildings. The bid validity was initially set for a period of 120 days, expiring on September 17, 2022. BPBCC later requested an extension of this validity, a request to which the petitioner did not consent. Despite this, the BPBCC proceeded to evaluate the bid and subsequently blacklisted Universal Agro Corporation Ltd. for allegedly submitting a forged experience certificate.
The court highlighted Clause 15.2 of the Standard Bidding Document, which allows bidders to refuse extensions of bid validity without forfeiting bid security. The judges emphasized that the tendering authority had made it clear through an email dated January 12, 2023, that without the bidder's consent to extend the bid validity, the tender would not be considered. The court ruled that the BPBCC's subsequent evaluation of the bid was contrary to this stipulation and could not form the basis for blacklisting.
Citing the Supreme Court's observations on the serious civil consequences of blacklisting, the court underscored the necessity for fairness, reasonableness, and proportionality in administrative actions. The judgment also noted that while the submission of a forged document is a serious allegation, it must be addressed in separate criminal proceedings without prejudice to the administrative review.
Ultimately, the court quashed the orders of blacklisting and the appellate decisions affirming it, allowing the writ petition in favor of Universal Agro Corporation Ltd. However, the court clarified that its decision was limited to the administrative action of blacklisting and would not affect ongoing criminal proceedings related to the alleged forgery.
Bottom Line :
Blacklisting of a bidder cannot be sustained when the tender validity had expired and the bidder did not consent to its extension, as required by the tendering authority's own communication.
Statutory provision(s): Clause 15.2 of Standard Bidding Document, Bihar Contractors Registration Rules, 2007, Sections 467, 468, 471, 420, 120B, 511 of the Indian Penal Code.
