Bvg INDIA LTD vs. The State Of Bihar

Facts

The petitioners, BVG India Ltd. and Sammaan Foundation (as a consortium), challenged the minutes of the Technical Committee dated November 22, 2022, which disqualified them from a tender process for ambulance services (NIT Reference No. 01/SHSB/PPP(AMBULANCE)/2022-23) issued by the State Health Society, Bihar (SHSB). The petitioners alleged arbitrary disqualification, violation of natural justice, and lack of jurisdiction. They also sought to disqualify Respondent No. 4, M/S Pashupatinath Distributors Private Limited, and Respondents No. 5 & 6 for submitting false information. Furthermore, they claimed the tender process was compromised due to the leakage of confidential bid information. A separate writ petition (CWJC No. 8553 of 2023) was filed by M/s Ziqitza Health Care Ltd., also challenging the disqualification of Respondent No. 4. The core dispute revolved around the eligibility criteria and the evaluation process for the tender.

Held

The Court held that the disqualification of petitioner BVG India Limited at the technical stage by the order dated November 22, 2022, was set aside. The Court found that Respondent No. 4, M/S Pashupatinath Distributors Private Limited, did not fulfill the eligibility criteria under Clause 2.2 and Clause 2.3 of the NIT. Consequently, its eligibility for the technical bid, financial bid, declaration as L1, and the work order issued in its favor were all set aside. The Court reasoned that the experience gained by bidders should be considered as of the last date of bid submission, and Respondent No. 4 did not meet this criterion. The Court also found the actions of the second respondent (State Health Society, Bihar) to be unfair, arbitrary, and in violation of Article 14 of the Constitution, failing to adhere to norms of transparency and fairness. The Court directed the second respondent to revisit the technical evaluation from the stage of remaining bidders, including BVG India Limited and M/s Ziqitza Health Care Ltd., and proceed with the evaluation afresh within two months. The interim arrangement made by the Court was to continue until then. The writ petition of BVG India Limited and two others (CWJC No. 16899 of 2022) was allowed. CWJC No. 8553 of 2023 filed by M/s Ziqitza Health Care Ltd. was allowed in part, specifically concerning reliefs against the fourth respondent.

Key Issues

1. Whether the disqualification of the petitioner's bid application at the technical stage by the Technical Committee on November 22, 2022, was arbitrary, contrary to principles of natural justice, and without jurisdiction, as argued by the petitioners? The petitioners contended that their disqualification was illegal and sought to be declared technically qualified. They also argued that Respondent No. 4, M/S Pashupatinath Distributors Private Limited, should have been disqualified for not meeting eligibility criteria and for submitting false information, and that the tender process was compromised due to information leakage. The respondents, including the State Health Society, Bihar, likely argued that the disqualification was justified based on the tender conditions and that the evaluation process was fair and followed due procedure. The petitioners also sought to quash the minutes of the Project Appraisal Committee meeting held on January 23, 2023, which declared Respondent No. 4 as L1, alleging a lowering of eligibility criteria.