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(b) The Act of 1998 and the Rules of 2000 do not prohibit inviting offers by e-reverse auction. As the Act of 1998 does not prohibit e-reverse auction, it cannot be said that the same is beyond the scope of the Act of 1998 and the Rules of 2000. The Act of 1998 and the Rules of 2000 have to be read harmoniously so as to give effect to it. Section 10(1) of the Act of 1998 permits the evaluation of the tenders in accordance with the procedure and criteria specified in the tender document. Section 16(m) of the Act of 1998 cannot be read to prohibit on-line reverse auction. The same will have to be read in a manner that Section 16(m) of the Act of 1998 permits on-line reverse auction.

(j) The TANGEDCO follows the reverse auction process for more than 13 years for procurement of coal at the lowest price. The Tamil Nadu Government's e-Procurement System contains the provision of floating tenders along with reverse bidding option. For the departments of Government of Tamil Nadu, the reverse auction process is in practice. The Ministry of Power, Government of India, vide letter dated 11.6.2015 has permitted Central PSUs such as NTPC, PGCIL, REC, etc., to make mandatory e-procurements through reverse auction in their bids. Even the CVC guidelines states that e-reverse auction can be done by the departments by themselves.

The negotiation is only with the lowest tenderer and not with any other tenderer.

(b) The concept of e-reverse auction is alien to the Act of 1998 and the Rules of 2000. Section 16 of the Act of 1998 specifies that the provisions of Sections 9 and 10 of the Act of 1998 shall not apply to procurement. Section 16(m) of the Act of 1998 permits on-line reverse auction only in Government e-Marketplace – Special Purpose Vehicle. The present tender is not from Government e- Marketplace (GeM). Wherever on-line reverse auction is permitted is specifically provided under Section 16(m) of the Act of 1998. Unless the Act of 1998 is amended, the appellants cannot resort to on-line reverse auction. The same would be beyond the scope of __________ https://www.mhc.tn.gov.in/judis  W.A.Nos.180 of 2024 etc. the Act of 1998 and the Rules of 2000.

2.3. E-Bidding is the process of inviting binding final price offers from the Qualified Bidders through internet for the purpose of determination of the lowest Bidder (i.e. the Bidder who submits the lower price Bid in the Reverse Auction). During Reverse Auction process, Bidder can change its quoted price from their initial price by a decrement of at least INR 10 Crores (or its multiples) to reduce its total price further. Such changes can be made any number of times within the e-Reverse Auction period. 2.4. The Qualified Bidder will remain anonymous to other Qualified Bidders participating in the electronic Bidding process. The Qualified Bidder will be able to see the prevailing lowest price Bid, but the name of the current L1 Bidder at any point of time will not be displayed. The Qualified Bidder shall have to put its price Bid below the displayed current L1 Bid by a decrement as above to become the L1 Bidder. The lower price obtained after completion of the Reverse Auction Process, shall be the Closing Price and the bidder quoting the same will be considered as the L1 bidder.