In public procurement matters, is delay in challenging tender conditions to be measured merely by counting the number of days that have elapsed?
Coram: Arun Palli; K.V. Viswanathan
No. Delay in public procurement is not just to be measured against the calendar for the purposes of limitation but as against the progression of the process; it must be assessed by reference to what has occurred during those days, whose interests have arisen, and what public consequences would follow from unsettling the process at that stage, since such matters involve larger public interest and multiple, complex stages of evaluation.
Constitution of India — Article 226 — public procurement — tender eligibility conditions — delay and laches — delay and laches — accrual of challenge — conscious inaction — Held: A challenge to a tender condition or eligibility criterion accrues on the very day the condition is published, and an entity that considers itself excluded must at the earliest raise the grievance before the Court; conscious inaction that allows the process to advance is not excused by later representations. (¶23–25) delay in public procurement — not measured by calendar days alone — Held further: Delay in public procurement is assessed not merely by counting days but by reference to what has occurred during those days, whose interests have arisen, and what public consequences would follow from unsettling an advanced, multi-stage process of significant public interest. (¶19, ¶21) Vinishma Technologies distinguished — operational v. geographical exclusion — Held further: A clause requiring bidders to maintain an office and warehouse in Delhi, incorporated to ensure prompt installation and servicing of equipment for government schools and open to any bidder able to demonstrate the required operational infrastructure, is operational rather than geographical in nature and stands apart from a State-specific past-performance restriction earlier struck down as an artificial, exclusionary barrier. (¶29–¶34) acquired rights of compliant bidders — public interest — appeals dismissed — Held further: Bidders who cleared every stage of evaluation acquire rights and interests that a belated, non-bona fide challenge cannot be permitted to disturb, particularly where the procurement serves schoolchildren; both Appeals were accordingly dismissed, leaving the validity of the disputed clause open for an appropriate case. (¶26–27, ¶35–37)
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