Non Participants in Tender Process Cannot Challenge Award: Delhi HC [Read Judgement]

New Delhi: The Delhi High Court has recently dismissed a petition challenging the award of a tender by Indian Oil Corporation Limited (IOCL) for an oil pipeline project.

A Division Bench comprising Acting Chief Justice Manmohan and Justice Manmeet Pritam Singh Arora dismissed the writ petition filed by Primatel Fibcom Ltd against IOCL and others. The court noted that the petitioner, Primatel Fibcom Ltd, had not participated in the bidding process and only intended to supply equipment to one of the bidders. As such, the court held that the petitioner lacked locus standi to challenge the tender award.

Referring to the Supreme Courts decision in NHAI v. Gwalior-Jhansi Expressway Limited, the court observed:

Only the entities who participate in the tender process pursuant to a tender notice can be allowed to make grievances about the non-fulfilment or breach of any of the terms and conditions of the tender documents concerned. The respondent who chose to stay away from the tender process cannot be heard to whittle down, in any manner, the rights of the eligible bidders who had participated in the tender process on the basis of the written and express terms and conditions.

The court also noted that the petition was barred by delay and laches, as the petitioner was aware that the tender had been awarded in September 2023 but filed the petition in June 2024. Additionally, the court observed that the work on the project had already commenced and been substantially executed. Referring to the Supreme Courts decision in Tata Motors Ltd v. Brihan Motors Electric Supply & Transport Undertaking and Ors., the court held that interference at such a belated stage would not be in the public interest.

In conclusion, the court dismissed the petition as being without merit and disposed of the pending application.

[Read Judgement]