Gujarat High Court Upholds Fairness Of 'Random Algorithm' Method In Tender Selection Process

The division bench, comprising Chief Justice Sunita Agarwal and Justice Aniruddha P. Mayee, the use of a random algorithm in the selection process for outsourcing manpower services is the most transparent and fair approach. The Court's decision came in response to a challenge to the selection process for outsourcing manpower services.

The bench emphasized, "Noticing the manner in which the selection of respondent No.6 has been made in the instant case through machine by adopting the method of random algorithm, we are of the considered view that this is the most transparent and fair manner of selection of tenderer for providing the services of outsourced man power."

One of the core contentions before the court was that although "Random Selection" was conducted via a machine, the information in the machine was inserted by officers who may not have acted in a fair manner. Furthermore, it was argued that no information was provided to the writ-petitioner or other tenderers after the random selection until the work order was issued to the selected tenderer.

However, the Court dismissed these concerns. The bench asserted, "As no human intervention has been made in the selection of one of the tenderer who was also placed as L-1, no arbitrariness can be attached to the selection process. As the decision making process is found to be transparent and fair, we do not find it a fit case for interference."

The counsel for the petitioner, contended that the selection process violated Article 14 of the Constitution of India, alleging discrimination between two similarly placed individuals. The Court, however, rejected this argument, stating that Article 14 does not apply to the tender process.

Furthermore, the Court underlined, "Moreover, the manner in which, the selection has been made through machine and no one is informed that the person selected till work contract is issued, would remove all possibility of human intervention at any stage of the award of contract."

Finding the writ-petitions to be misconceived, the Court subsequently dismissed them.

Case Title: M/S. Spire Enterprise vs Government E-Marketplace SPV

Case Citation: 2023 Livelaw (Guj) 143

Case No.: R/Special Civil Application No. 14312 Of 2023

Appearance: Mr Rj Goswami(1102) For The Petitioner(S) No. 1 Mr Utkarsh Sharma, AGP For The Respondent(S) No. 1,2,3,4,5,6

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