CA Certificate Alone Not Sufficient for Private Institutional Sales Bid, LoA/WCC Mandatory: Delhi HC [Read Order]

In a recent judgment, the Delhi High Court held that a bidder claiming experience based on private or institutional sales cannot rely only on a Chartered Accountant (CA) certificate, and that submission of Letters of Acceptance (LoA) or Work Completion Certificates (WCC) is mandatory where the tender conditions so require.

Bothra Shipping Services Pvt. Ltd. filed a writ petition challenging the rejection of its technical bid by the National Small Industries Corporation Ltd. (NSIC). The bid related to a tender issued for supply of tool kits, including sewing machines, under the PM Vishwakarma Scheme. The tender required bidders to meet specific experience criteria, including prior sale of a minimum number of sewing machines.

The petitioner's counsel submitted its bid through the Government e-Marketplace portal and relied on private and institutional sales to meet the experience requirement under Clause 4.4 of the Request for Proposal (RFP). They submitted a CA certificate along with GST invoices, bank statements, and other financial records showing sales exceeding the required quantity.

NSIC later sought clarifications which were provided by the petitioner. The bid was rejected on the ground that the petitioner failed to upload LoAs or Work Experience or Completion Certificates for private or institutional sales, as required under Annexure V of the RFP.

The petitioner's counsel argued that Clause 4.4(ii) of the RFP required performance to be evaluated only through a CA certificate and did not mandate submission of LoAs or WCCs. They argued that in private or institutional sales such documents are often not issued, and that invoices and CA certification should be treated as sufficient proof of experience.

NSIC argued that the CA certificate had to be submitted strictly in the format prescribed under Annexure V. It pointed out that Note 2 of Annexure V clearly requires bidders relying on private or institutional sales to upload LoAs or Work Experience Certificates along with the bid, and that this requirement was not complied with.

The Division Bench of Chief Justice Devendra Kumar Upadhyaya and Justice Tushar Rao Gedela observed that Clause 4.4(ii) cannot be read in isolation and must be read together with Annexure V. The court explained that while the RFP refers to evaluation through a CA certificate, the certificate must be in the manner prescribed in the annexure.

The court pointed out that Note 2 of Annexure V is mandatory and goes to the root of eligibility. The court clearly stated “The irresistible conclusion is that Note 2 would be mandatory and binding on all the bidders who seek eligibility under Private/Institutional sales.”

The court held that invoices, GST returns, and bank statements cannot replace documents specifically required under the tender conditions. It upheld the rejection of the bid and dismissed the writ petition.

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