Case title: MERITECH SOFTWARE PVT. LTD versus BHARAT SANCHAR NIGAM LTD.
Case No.: W.P.(C) 4568/2024 & CM APPLs. 18725/2024, 18727/2024
Dated on: MARCH 28, 2024
Coram: HON’BLE THE ACTING CHIEF JUSTICE HON’BLE MS. JUSTICE MANMEET PRITAM SINGH ARORA
Facts:
Meritech Software Pvt. Ltd. filed a writ petition challenging the disqualification of its bid by Bharat Sanchar Nigam Ltd. (BSNL) for a tender related to RF Tools and Testers. The disqualification was based on Clause 4.1.7, which pertains to bidders sharing a land border with India. Meritech contended that this clause was misapplied as it is a 100% Indian-owned company and not an agent of Lenovo or OnePlus. The disqualification was allegedly due to quoting Lenovo and OnePlus products, but Meritech argued these were merely hardware elements, not finished products. BSNL acknowledged the cryptic nature of the disqualification and agreed to reconsider the petition as a representation, promising a detailed decision within ten days.
Issues faced by the Court:
- Whether Clause 4.1.7 of the tender document, which disqualifies bidders who share a land border with India, was correctly applied to the Petitioner, Meritech Software Pvt. Ltd., an Indian manufacturer.
- Whether the Respondent, BSNL, provided sufficient and valid reasons for disqualifying Meritech’s bid, especially given that the rejection order was non-speaking and lacked detailed reasoning.
- Whether BSNL correctly inferred that Meritech was acting as an agent for Lenovo and OnePlus, given that Meritech proposed to use Lenovo and OnePlus products as hardware elements, not as finished products.
- Whether the Petitioner’s offer to provide alternative hardware from Dell and Samsung without altering the bid price was appropriately considered by BSNL.
Contentions of the Appellant:
Meritech Software Pvt. Ltd., the appellant, contended that its bid for a BSNL tender was wrongly disqualified under Clause 4.1.7, which applies to bidders sharing a land border with India. As a 100% Indian-owned company, Meritech argued that this clause was inapplicable. They asserted that the disqualification was due to a misinterpretation, as they are not agents of Lenovo or OnePlus, despite quoting their products. These products were only hardware components, not finished products. Meritech also highlighted their willingness to substitute these with alternatives like Dell and Samsung without changing the bid price. They claimed the rejection was non-speaking and lacked sufficient reasoning.
Contentions of the Respondent:
In paragraph 7 of the judgment, the learned senior counsel for the Respondent, Bharat Sanchar Nigam Ltd. (BSNL), contends that the decision to disqualify Meritech Software Pvt. Ltd. is based on the facts of the case and is legally tenable. However, he acknowledges that the reasoning provided in the impugned order is cryptic. He also states that BSNL is willing to treat the present writ petition as a representation and decide on it by issuing a detailed, reasoned order.
Court’s Analysis & Judgement:
The Court disposes of the writ petition by directing the Respondent, BSNL, to treat the present writ petition as a representation. BSNL is ordered to decide on the matter by issuing a reasoned order in accordance with the law within ten days. The Court also notes that if the Petitioner, Meritech Software Pvt. Ltd., is aggrieved by the decision taken by BSNL, they are at liberty to file appropriate proceedings in accordance with the law. The rights and contentions of both parties are left open for future consideration.
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Judgement Reviewed By- Shramana Sengupta
Click here to read the judgement
