The Supreme Court on Monday declined to interfere with the Delhi High Court’s decision setting aside the tender process for outsourcing Consular, Passport and Visa (CPV) services at Indian missions in Abu Dhabi, Kuwait, Singapore and Canberra. While upholding the High Court’s ruling, the Court directed the Union Government to ensure that consular services continue uninterrupted until a fresh tender process is completed.
The Bench of Chief Justice of India (CJI) Surya Kant and Justice Joymalya Bagchi and JusticeV. Mohana dismissed the Union Government’s appeal against the High Court judgment in Union of India v. E Trav Tech, observing that the functioning of Indian diplomatic missions should not suffer during the transition to a new procurement process.
The Bench observed that after hearing arguments from both sides, they wanted to ensure that the daily operations of the involved establishments face no disruption while the fresh bidding process is being finalized
To avoid disruption of passport and visa services, the Court permitted Engineers India Limited (EIL) and the Ministry of External Affairs (MEA) to make appropriate interim arrangements. These could include engaging the existing L-1 bidders, if their performance had been satisfactory, or appointing any other suitable agency until fresh contracts are finalised.
The Court clarified that such arrangements would be purely temporary and would not confer any rights or equities upon the agencies engaged. It further directed the MEA to complete the fresh tender exercise as expeditiously as possible, preferably within three months.
The dispute arose from the Delhi High Court’s July 15 judgment, which quashed the technical evaluation process and the consequential award of contracts for CPV services at the four overseas missions. The High Court had held that the evaluation process suffered from arbitrariness, irrationality and lack of transparency, and directed the government to initiate a fresh tender process within one month. Pending completion of the new exercise, the High Court had allowed the existing service providers to continue operations.
Challenging the judgment before the Supreme Court, Solicitor General Tushar Mehta, appearing for the Union Government, argued that setting aside the tenders had adversely affected embassy operations, requiring diplomatic personnel to divert attention from their regular responsibilities to manage passport and visa services.
He defended the tender evaluation, contending that the bids had been assessed independently on their own merits and not through a rigid comparative marking system. Mehta further submitted that the Ministry possessed valid reasons to justify its evaluation methodology and sought liberty to place those reasons before the High Court.
Asserting that the government now has valid grounds to present, the Solicitor General asked for permission to approach the High Court, while requesting liberty to move the Supreme Court again if dissatisfied.
The Bench, however, questioned the government’s departure from the conditions contained in the tender documents.
Chief Justice Surya Kant observed that the authorities had effectively invited the adverse findings by failing to provide reasons supporting their evaluation process.
Pointing to settled law, Justice Joymalya Bagchi remarked that the government cannot alter tender rules midway through the process. He noted that since the High Court found the bid evaluation terms unclear and impractical, any post-commencement changes to the tender document would be legally impermissible.
During the hearing, the Bench suggested that the continuation of interim arrangements would adequately protect public interest while ensuring compliance with the High Court’s directions.
Senior Advocates Kapil Sibal and Shyam Divan, appearing for certain bidders, informed the Court that they had no objection to interim arrangements being made to ensure uninterrupted delivery of consular services.
The Supreme Court ultimately upheld the Delhi High Court’s decision to quash the tender process, while permitting the Union Government to continue temporary arrangements at the four Indian missions until a fresh and lawful tender process is completed.
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