Andhra Pradesh High Court
Judges : S.R.NAYAK
M.Sitarama Reddy - Appellant
Versus
Indian Railways, rep.by its Chairman, New Delhi - Respondent
Decided On : 12-30-94
Arbitrary and Illegal - Supply and Stacking of 50 mm Machine Crushed Stone Ballast to Railway's Specifications - The court declared the action of awarding the contract to the fourth respondent as arbitrary and illegal and directed the respondents to award the said work to the petitioner.
Fact of the Case:
The petitioner, an unsuccessful bidder, sought declaration of the action of the respondents in awarding the contract as arbitrary and illegal and requested to set it aside.
Finding of the Court:
The court found the action of awarding the contract to be arbitrary and illegal and directed the respondents to award the said work to the petitioner.
Issues: Unfair award of contract, arbitrary and illegal action by the respondents
Ratio Decidendi: The court considered the unfairness in the award of the contract and the arbitrary and illegal action by the respondents in reaching its decision.
Final Decision: The court declared the action of awarding the contract to the fourth respondent as arbitrary and illegal and directed the respondents to award the said work to the petitioner.
( 1 ) THIS petition is by the unsuccessful bidder seeking declaration of the action of the respondents 2 and 3 in awarding the contract for supply and stacking of 50 mm Machine Crushed Stone Ballast to Railway s specifications at Railway depot Rajahmundry on BZA-VSKP Section of Vijayawada Division (approximate quantity being 3. 00 Lacs Cubic Metres) and loading into Railway wagons/hoppers by Mechanised/manual means bearing Tender No. GM/ w/b/19/ot in Tender Notice No. GM/w/sc/open Tender/93/8 dated 31-8-1993 to the fourth respondent as arbitrary and illegal and to set aside the same. The petitioner has further sought for a consequential direction to the respondents 2 and 3 to award the said work to him.
( 2 ) THE pleadings filed by the parties disclose that open tenders were invited for the supply and stacking of 50 mm. Machine crushed stone ballast to railways specification, at railway depot at Rajahmundry on Vijayawada-Visakhapatnam section of Vijayawada division on South Central Railway and loading the same into Railway Wagons/hoppers by mechanised/manual means - Quantity 3. 00 lakhs cum. The approximate face value of the tender invited was Rs. 9. 54 crores. The last day for issue of tender forms was fixed as 15-12-1993 by post and 27-12-1993 in person. The last day for submission of tenders was fixed at 15. 00 hours, on 28-12-1993. The time and date for opening the tender was fixed at 15. 30 hrs. on 28-12-1993. 33 tender forms were sold and as many as 10 tender forms were received on 28-12-1993. All the ten tenders were opened in the presence of the tenderers or their representatives at 15. 30 hours on 28-12-1993. The particulars of the tenderers, rate of supply etc. , and the total quantity and amount for which they have tendered in the ascending order are given below:
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