{"id":249512,"date":"2021-06-09T18:40:15","date_gmt":"2021-06-09T13:10:15","guid":{"rendered":"https:\/\/www.scconline.com\/blog\/?p=249512"},"modified":"2021-06-18T11:16:17","modified_gmt":"2021-06-18T05:46:17","slug":"cartelisation-2","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2021\/06\/09\/cartelisation-2\/","title":{"rendered":"Bom HC | Can possible case of cartelization be determined only after opening of commercial bid? HC answers"},"content":{"rendered":"<p style=\"text-align: justify;\"><strong>Bombay High Court: <\/strong>The Division Bench of S.C. Gupte and M.S. Karnik, JJ., expressed that for an employer to come to a conclusion of a possible case of cartelization, it is not necessary that the same can happen only after the opening of commercial bids.<\/p>\n<p style=\"text-align: justify;\">Petitioner claimed to be a sole proprietor of a firm carrying on the business of fresh water supply through barges. Petitioner had been one of the contractors supplying water to respondent 1 ONGC.<\/p>\n<p style=\"text-align: justify;\">Respondent 1 invited Indigenous Open Tender for e-procurement for supply of water to its offshore facilities, including the Nhava Supply Base. The said tender was a two bid system \u2013 a technical bid followed by a commercial bid.<\/p>\n<p style=\"text-align: justify;\">Along with the petitioner, there were three others who had submitted the bids.<\/p>\n<p style=\"text-align: justify;\">Respondent ONGC had cleared the technical bids of all 4 bidders, including the petitioner and his father at the stage of consideration of commercial bids, the bids of both petitioner and his father were not opened.<\/p>\n<p style=\"text-align: justify;\">Upon evaluation of offers submitted by petitioner and Royal Traders, it came to the notice of Respondent ONGC that the proprietors of two firms were respectively the son and father. Hence considering that the two would have access to vital information pertaining to the bid submitted by the other, the employer concluded that both the bidders have an undisclosed understanding with each other, which would restrict competitiveness thereby offending Section 2 of the Integrity Pact.<\/p>\n<blockquote>\n<p style=\"text-align: justify;\">Section 2 of the Integrity Pact is as follows:<\/p>\n<p style=\"text-align: justify;\"><strong>Commitments of the Bidder\/contractor<\/strong><\/p>\n<ol start=\"2\">\n<li style=\"text-align: justify;\">The Bidder\/Contractor will not enter with other Bidders into any undisclosed agreement or understanding, whether formal or informal. This applies in particular to prices, specifications, certifications, subsidiary contracts, submission or non &#8211; submission of bids or any other actions to restrict competitiveness or to introduce cartelisation in the bidding process.<\/li>\n<\/ol>\n<\/blockquote>\n<h3 style=\"text-align: justify;\"><span style=\"color: #993300;\">Analysis and Decision<\/span><\/h3>\n<p style=\"text-align: justify;\">High Court stated that the grounds urged by petitioner in support of their challenge to acceptance of bids did not commend the Court.<\/p>\n<p style=\"text-align: justify;\">Though the petitioner and his father had shown as proprietors of different concerns, but they operate from the same premises.<\/p>\n<p style=\"text-align: justify;\">Further, in an earlier contract involving another employer, the petitioner had not only acted both for himself and his father, but had also issued cheques from the same account towards the contracts of himself and his father.<\/p>\n<p style=\"text-align: justify;\">Above being a purely administrative matter, to fault the respondent employer\u2019s decision there must be a case of either perversity in the decision or a colourable exercise on the part of the employer.<\/p>\n<p style=\"text-align: justify;\">Bench expressed that even if the State cannot act in a matter of commercial contract in wholly unreasonable or arbitrary or capricious manner, its administrative decision cannot be put on the pedestal of a quasi-judicial decision.<\/p>\n<p style=\"text-align: justify;\">Court added that as long as the respondent\u2019s decision was reasonably supported by material on record and there was no case of victimization or colourable exercise, the decision could not be faulted.<\/p>\n<blockquote>\n<p style=\"text-align: justify;\"><span style=\"color: #0000ff;\">There is nothing sacrosanct about finding the technical bid of a bidder responsive in a two bid system so as to make it obligatory on the employer to open the commercial bid. The employer may well come upon knowledge of some relevant information, which disqualifies the particular bidder, and in that case may choose not to open his commercial bid. If his disqualification is supported by some material on record, there is nothing further for this Court to inquire.<\/span><\/p>\n<\/blockquote>\n<p style=\"text-align: justify;\">High Court found no merit in the grounds of challenge urged by the petitioner. [O.K. Marine v. ONGC, <a href=\"http:\/\/www.scconline.com\/DocumentLink\/EgOpsANu\"><b>2021 SCC OnLine Bom 799<\/b><\/a>, decided on 8-06-2021]<\/p>\n<hr \/>\n<p style=\"text-align: justify;\">Advocates before the Court:<\/p>\n<p style=\"text-align: justify;\">Mr. R.D. Soni, i\/b. Irvin D\u2019souza, for the Petitioner<\/p>\n<p style=\"text-align: justify;\">Dr. Abhinav Chandrachud, a\/w. Mr. Nishit Dhruva, Mr. Prakash Shinde, Ms. Khushbu Chhajed, Mr. Abhishek Bhavsar and Ms. Alisha Shah, i\/b. MDP &amp; Partners, for Respondent Nos. 1 and 3.<\/p>\n<p style=\"text-align: justify;\">Mr. Kunal Gaikwad, for Respondent No.4.<\/p>\n<p style=\"text-align: justify;\">Mr. Karl Tamboly, a\/w. Mr. Ramiz Shaikh and Mr. Akshay Bafna, i\/b. Bafna Law Associates, for Respondent No.5.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Bombay High Court: The Division Bench of S.C. Gupte and M.S. Karnik, JJ., expressed that for an employer to come to a <\/p>\n","protected":false},"author":8808,"featured_media":74381,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3,10],"tags":[2998,46178,10591,27914,46179,46180,43812,31857,28744,43755,33210,9321],"class_list":["post-249512","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-casebriefs","category-highcourts","tag-Agreement","tag-bidders","tag-bidding","tag-cartelisation","tag-commercial-bid","tag-competitiveness","tag-contractor","tag-employer","tag-employment","tag-ongc","tag-technical-bid","tag-tender"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.4 (Yoast SEO v27.4) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Bom HC | Can possible case of cartelization be determined only after opening of commercial bid? 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HC answers"}]},{"@type":"WebSite","@id":"https:\/\/www.scconline.com\/blog\/#website","url":"https:\/\/www.scconline.com\/blog\/","name":"SCC Times","description":"Bringing you the Best Analytical Legal News","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.scconline.com\/blog\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/www.scconline.com\/blog\/#\/schema\/person\/919ec47cc1b871b362af05740398033a","name":"Bhumika Indulia","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.scconline.com\/blog\/wp-content\/uploads\/2021\/04\/Me-150x150.jpg","url":"https:\/\/www.scconline.com\/blog\/wp-content\/uploads\/2021\/04\/Me-150x150.jpg","contentUrl":"https:\/\/www.scconline.com\/blog\/wp-content\/uploads\/2021\/04\/Me-150x150.jpg","caption":"Bhumika Indulia"},"url":"https:\/\/www.scconline.com\/blog\/post\/author\/editor_1\/"}]}},"jetpack_featured_media_url":"https:\/\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/09\/Bombay-HC.jpg","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":238125,"url":"https:\/\/www.scconline.com\/blog\/post\/2020\/10\/28\/chh-hc-extent-of-power-of-judicial-review-under-art-226-of-constitution-is-limited-in-case-of-tender-proceedings-judicial-restraint-to-be-exercised-in-administrative-matters\/","url_meta":{"origin":249512,"position":0},"title":"Chh HC | Extent of Power of Judicial Review under Art. 226 of Constitution is limited in case of \u2018tender\u2019 proceedings; Judicial restraint to be exercised in administrative matters","author":"Editor","date":"October 28, 2020","format":false,"excerpt":"Chhattisgarh High Court: A Division Bench of P.R. Ramchandra Menon and Parth Prateem Sahu JJ., dismissed the petition applying the principle of judicial restraint in administrative matters. The facts of the case are such that petitioner is an enterprise registered under the Micro, Small and Medium Enterprise (Development) Act, 2006,\u2026","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":208063,"url":"https:\/\/www.scconline.com\/blog\/post\/2019\/01\/14\/patna-hc-tender-for-placement-of-security-guards-holding-the-procedure-of-technical-bid-and-financial-bid-to-be-manipulated-set-aside\/","url_meta":{"origin":249512,"position":1},"title":"Pat HC | Tender for placement of security guards holding the procedure of technical bid and financial bid to be manipulated&#8211; set aside","author":"Bhumika Indulia","date":"January 14, 2019","format":false,"excerpt":"Patna High Court: A Division Bench comprising of Amreshwar Pratap Sahi and Anjana Mishra, JJ. rejected a letters patent appeal arising from an order in a writ petition wherein a tender process was held to be vitiated. Respondent herein had filed a writ petition challenging tender for placement of security\u2026","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":206275,"url":"https:\/\/www.scconline.com\/blog\/post\/2018\/12\/05\/non-aggrieved-party-has-no-reason-to-question-the-acts-wherein-he-did-not-suffer-as-a-consequence-thereof-uttaranchal-hc\/","url_meta":{"origin":249512,"position":2},"title":"Non-aggrieved party has no reason to question the acts wherein he did not suffer as a consequence thereof: Uttaranchal HC","author":"Bhumika Indulia","date":"December 5, 2018","format":false,"excerpt":"Uttaranchal High Court: A Single Judge Bench comprising of Sudhanshu Dhulia, J. dismissed a petition finding no anomaly in the matter. The petitioner was a transporter who participated in E-tender process which was invited by the respondent for supply of 100 trucks for transporting gas cylinders where he made a\u2026","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":6724,"url":"https:\/\/www.scconline.com\/blog\/post\/2015\/07\/20\/independent-decisions-do-not-give-benefit-of-single-economic-entity-defence-four-insurance-psus-found-guilty-of-bid-rigging\/","url_meta":{"origin":249512,"position":3},"title":"Independent decisions do not give benefit of \u2018single economic entity\u2019 defence: Four insurance PSUs found guilty of bid rigging","author":"Sucheta","date":"July 20, 2015","format":false,"excerpt":"Competition Commission of India: The CCI found insurance PSUs guilty of cartelization qua rigging the tender floated by the Government of Kerala for selecting insurance service provider for implementation of the \u2018Rashtriya Swasthya Bima Yojna\u2019(\u2018RSBY\u2019). The regulator imposed around 670 crore rupees penalty on the PSUs. The notable point in\u2026","rel":"","context":"In &quot;Tribunals\/Commissions\/Regulatory Bodies&quot;","block_context":{"text":"Tribunals\/Commissions\/Regulatory Bodies","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/tribunals_commissions_regulatorybodies\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2015\/10\/scc-blog_Page_9.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2015\/10\/scc-blog_Page_9.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2015\/10\/scc-blog_Page_9.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2015\/10\/scc-blog_Page_9.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2015\/10\/scc-blog_Page_9.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":256920,"url":"https:\/\/www.scconline.com\/blog\/post\/2021\/11\/10\/we-have-our-own-doubt-whether-high-court-can-permit-one-of-the-bidder-to-modify-its-offer-under-article-226-sc\/","url_meta":{"origin":249512,"position":4},"title":"We have our own doubt whether High Court can permit one of the bidder to modify its offer under Article 226: SC","author":"Editor","date":"November 10, 2021","format":false,"excerpt":"\u201cHigh Court has used the word writ petition is disposed of. Once the writ of mandamus was issued, instead of disposing of the writ petition, the High Court ought to have allowed the writ petition.\u201d","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2021\/02\/sc-2-7.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2021\/02\/sc-2-7.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2021\/02\/sc-2-7.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2021\/02\/sc-2-7.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2021\/02\/sc-2-7.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":244361,"url":"https:\/\/www.scconline.com\/blog\/post\/2021\/02\/25\/public-auction\/","url_meta":{"origin":249512,"position":5},"title":"J&#038;K HC | \u201cEven after completion of public auction the highest bidder has no indefeasible right till the confirmation letter is issued\u201d; HC states","author":"Editor","date":"February 25, 2021","format":false,"excerpt":"Jammu and Kashmir High Court: Javed Iqbal Wani, J., had heard the instant petition challenging inaction on the part of respondent regarding allotment of auctioned property. The Bench stated, \u201cThe right to refuse the lowest or any other tender is always available to the government and even if a public\u2026","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts\/249512","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/users\/8808"}],"replies":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/comments?post=249512"}],"version-history":[{"count":0,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts\/249512\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/media\/74381"}],"wp:attachment":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/media?parent=249512"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/categories?post=249512"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/tags?post=249512"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}