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Service & Administrative LawSupreme Court of India

Municipal Corporation, Ujjain v. BVG India Limited

Civil Appeal · 2018 INSC 1217Decided 28 Mar 2018
Civil Appeal No. 3330 of 2018
Justice Ranjan Gogoi · Justice R. Banumathi · Justice Mohan M. Shantanagoudar

Background

Ujjain Municipal Corporation floated a tender for door-to-door municipal solid waste collection and awarded the 10-year contract to Global Waste Management Cell Pvt. Ltd., the highest-scoring bidder on a weighted 80% technical/20% financial basis, after evaluation by an appointed technical expert. The unsuccessful second-ranked bidder, BVG India Limited, challenged the award in the Madhya Pradesh High Court, which set aside the award, re-scored the technical and financial bids itself, and ruled in BVG's favour. The Municipal Corporation and Global Waste Management Cell appealed to the Supreme Court.

Decision Breakdown

The Supreme Court held that courts exercising judicial review over a public tender cannot sit as an appellate authority re-evaluating technical and financial bid scores assigned by a qualified technical expert: interference is justified only where the decision-making process is shown to be arbitrary, irrational, mala fide, or intended to favour someone, none of which was established here. The Court found the High Court had itself erred in its financial-bid calculation (reaching 0.85 marks instead of the correct 17 marks for the winning bidder) and had wrongly treated a document as relied upon by the technical expert when it was in fact submitted only later in the High Court proceedings. Because public interest in timely, competent solid-waste management favoured deference to the expert evaluation, especially given BVG India's history of 73 show-cause notices from other municipal corporations for non-performance, the Court set aside the High Court's judgment and allowed the Municipal Corporation's and Global Waste Management's appeals (Civil Appeal Nos. 3330 and 3331 of 2018). A separate correction order dated 28.03.2018 fixed a typographical omission in the original judgment, clarifying that BVG India's own appeal (Civil Appeal No. 3332 of 2018) was correspondingly dismissed.

Lesson Learnt

Courts will generally not second-guess a technical expert's scoring of competing bids in a government tender unless the decision-making process itself is shown to be arbitrary, biased, or made in bad faith: an unsuccessful bidder cannot use litigation to re-run the technical evaluation in its own favour.

Municipal Corporation, Ujjain v. BVG India Limited – Legal Case Shots | LegalAware