Bothra Shipping Services Pvt Ltd Vs Union of India & Ors. (Delhi High Court)
Conclusion: Since assessee failed to meet the mandatory eligibility conditions under Clause 4.4(ii) read with Annexure V of the RFP due to non-submission of LoAs/Work Experience Certificates. The rejection of assessee’s bid by NSIC was held to be lawful, justified, and not arbitrary. Consequently, the writ petition was dismissed, and no interference with the tender process was warranted.
Held: Assessee challenged the rejection order passed by the National Small Industries Corporation Limited (NSIC), whereby assessee was declared technically disqualified in a tender floated under the PM Vishwakarma Scheme for supply of tailoring tool kits. The Request for Proposal (RFP) required bidders/OEMs to demonstrate experience of selling at least 2,40,000 sewing machines in any of the last five financial years. Assessee submitted its bid relying on Private/Institutional sales and furnished a Chartered Accountant (CA) certificate along with GST invoices and other financial documents. However, NSIC rejected the bid on the ground that assessee failed to upload Letters of Acceptance (LoAs) and/or Work Completion Certificates (WCCs) as required under the RFP read with Annexure V. After representations and a prior writ petition directing NSIC to pass a reasoned order, NSIC reiterated its rejection through the impugned order leading to the present writ petition. Assessee contended that the rejection was arbitrary, illegal, and contrary to Clause 4.4(ii) of the RFP. It was argued that for Private/Institutional sales, the RFP required only a CA certificate as per Annexure V and not mandatory submission of LoAs or WCCs. According to assessee, such documents were often not issued in institutional sales, and the requirement stood sufficiently fulfilled through GST invoices, bank statements, delivery records, and a duly certified CA certificate. Assessee emphasized the distinction between Clause 4.4(i) (Government supplies) and Clause 4.4(ii) (Private/Institutional sales), asserting that imposing LoA/WCC requirements under Clause 4.4(ii) would obliterate this distinction. It was further submitted that assessee had sold over 4,00,000 sewing machines, far exceeding the eligibility threshold. NSIC contended that CA certificate had to be submitted strictly in the format prescribed under Annexure V. It pointed out that Note 2 of Annexure V clearly requires bidders relying on private or institutional sales to upload LoAs or Work Experience Certificates along with the bid, and that this requirement was not complied with. The Court held that Clause 4.4(ii) of the RFP was a substantive provision that mandates evaluation of performance “only” through a CA certificate prepared strictly in accordance with Annexure V. Annexure V, particularly Note 2, prescribes a mandatory procedural requirement for bidders relying on Private/Institutional sales to upload LoAs or Work Experience Certificates along with the bid. The Court emphasized that the word “only” in Clause 4.4(ii) signifies that the CA certificate must strictly conform to Annexure V, including its notes. The Court rejected the argument that submission of invoices, GST returns, and bank statements could substitute the mandatory requirement under Note 2. It held that Note 2 was not merely directory but goes to the root of eligibility. Failure to comply with such mandatory conditions renders a bidder technically ineligible.
1. Present writ petition has been filed under Article 226 of the Constitution of India, 1950, seeking quashing of the rejection order dated 30.05.2025 (hereafter referred to as “impugned rejection order”) passed by the respondent no.2/National Small Industries Corporation Limited (hereafter referred to as “NSIC”) in respect of the subject Request for Proposal bearing No.NSIC/PMV/2023-24/TAILOR/01(R4) dated 10.01.2025 (hereafter referred to as “RFP”). Petitioner further seeks a direction to NSIC to not proceed with the award of the tender/issuance of Letter of Intent in favour of respondent no.4/National Cooperative Consumers’ Federation or respondent no.5/Central Government Employees Consumer Cooperative Society, and to consider and accept the Chartered Accountant (CA) certified GST invoices, purchase orders, delivery reports and other documents submitted by the petitioner through clarification dated 12.02.2025, and representation dated 22.04.2025 as relevant documents for work completion. The petitioner also seeks a direction to the NSIC to declare it technically qualified in the subject RFP.
