Raipur: The Chhattisgarh High Court quashed certain clauses related to blacklisting in the tender documents issued by the Chhattisgarh Medical Services Corporation Limited (CGMSCL).
These clauses stipulated that any bidder blacklisted at any point in the past would be debarred from participating in the tender process, even if the blacklisting period ended.
Hearing petitions, a division bench comprising Chief Justice Ramesh Sinha and Justice Arvind Kumar Verma observed that while the tendering authority has the right to set conditions, these conditions cannot be arbitrary.
The court noted that the challenged clauses, part of tender No. 194/CGMSCL/108 Sanjeevani Express/2025-26 and tender No. 196/CGMSCL/Haat Bazar/2025-26, appeared unreasonable as they permanently barred previously blacklisted entities, denying them a chance to participate even after the penalty period.
The requirement in the annexures for bidders to declare they were never blacklisted was also deemed unjustified.
The High Court referred to a recent Supreme Court ruling in Banshidhar Construction Pvt. Ltd. v. Bharat Coking Coal Ltd. & Others, which reiterated that while courts do not act as appellate authorities in contract awards, the decision-making process must be fair, transparent, and free from arbitrariness.
The bench clarified that if a bidder was blacklisted earlier and the blacklisting period concluded, they would be eligible to participate in the tender process, provided they meet other stipulated conditions. However, bidders currently under blacklisting will remain ineligible.
The court disposed of the petitions with the aforementioned observations and directions and noted that the tendering authority can set necessary conditions, but they should not be arbitrary or impractical, hindering the participation of potential bidders.
The petitioner, a healthcare infrastructure and service provider, approached the High Court challenging several clauses in two Request for Proposals (RFPs) issued by the CGMSCL.
The petitioner sought the court’s intervention to declare various eligibility conditions outlined in clauses of the RFP dated 9 April 2025 as arbitrary, unreasonable, discriminatory, and violative of Articles 14 and 19(1)(g) of the Constitution of India.
The petitioner also challenged the amendments made to several clauses through a corrigendum issued on 6 May 2025, contending they suffer from the same infirmities. The petitioner further prayed for the quashing of the entire RFP, arguing that the technical evaluation criteria specified in a clause are arbitrary, vague, and against the principles of fair and transparent competition in public procurement.
The petitioner requested HC to direct the respondents to reissue a fresh RFP with fair and reasonable eligibility and evaluation criteria for the operation, maintenance, and management of the 108 Sanjeevani Express Emergency Ambulance Services.
The petitioner specifically contested the technical experience requirement and the evaluation criteria, which mandate prior experience in technology-based screening for limited disease areas.
It is made clear that if the bidder has earlier been blacklisted and the period of blacklisting is over, he would be eligible to participate in the tender process subject to fulfillment of other stipulated conditions.
It is further made clear that if the blacklisting of any bidder is in operation/existence, the said bidder would not be entitled to participate in the tender process, the court said.
