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2006 Supreme(Bom) 1410

2007(1) ALL MR 255
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
(NAGPUR BENCH)
D. D. SINHA & S. R. DONGAONKAR, JJ.
M/s. B. Himmatlal Agrawal & Anr.- Petitioners
Versus
Western Coalfields Ltd. & Ors.- Respondent
Writ Petition No.3854 of 2006
Decided on 7th September, 2006.
Advocates appeared
Shri. M. G. BHANGDE, Senior Advocate with Shri. M.V. SAMARTH, Advocate for the Petitioners.
Shri. S. C. MEHADIA, Advocate for the Respondent Nos.1 to 3.
Shri. V. R. MANOHAR, Senior Advocate with Shri. ANJANDE, Advocate, for the Respondent No.4.

Headnote:Constitution of India - Articles 226 and 227 - Jurisdiction of High Court - Discretionary - Invocation of - Person seeking to invoke such discretionary jurisdiction of High Court must come with clean hands - Relevant facts not to be suppressed - Misleading statement no t to be made - Incorrect information not to be given to Court. - One, who invokes the discretionary jurisdiction of the Court under Article 226 and/or 227 of the Constitution of India, must come with clean hands, must not suppress any relevant fact from the Court, must refrain from making misleading statement and should not give incorrect information to the Court. It is equally true that when the petitioner under Article 226 of the Constitution of India has failed to state the correct facts or has made a false statement with a view to obtain ex parte order, in such situation, the Court will be justified in dismissing such writ petition on this count only.

       Contract Act, 1872 - Contract of work - Tender - Disqualification for - To be a subject of disqualification and being disqualified - Two distinct situations - However result same - Tenderer gets disqualified. - To be a subject of disqualification and being disqualified though are two different and distinct situations, however, the result is the same i.e. tenderer gets disqualified. In former, disqualification shall come into effect only after decision is taken on the subject by the Tender Committee i.e. bidder, who is subject of disqualification has incurred disqualification and is disqualified. In latter, disqualification comes into effect on breach of conditions itself and disqualifies such bidder automatically.

       Contract Act, 1872 - Contract of work - Tender for - Essential eligibility conditions for - Incorporated in tender form - To ensure proper fulfilment of objective of tender - Failure to comply with essential conditions of tender - Results in disqualification. - Essential eligibility conditions are incorporated in the tender document in order to ensure proper implementation and fulfilment of objective of tender. Whenever conditions of tender require an act to be done in a particular manner and also lay down that failure to comply with the said requirement result in disqualification, such conditions of tender are always treated to be essential conditions of tender.

D. D. SINHA, J.:- Rule returnable forthwith. Heard finally by consent of Shri. Bhangde, learned Senior Counsel, assisted by Shri. Samarth, learned Counsel for the petitioners, Shri. Mehadia, learned Counsel for the respondent Nos.1 to 3 and Shri. Manohar, learned Senior Counsel, assisted by Shri. Anjan De, learned Counsel for the respondent No.4.

2. Shri. Bhangde, learned Senior Counsel for the petitioners, contended that respondent No.2 has published tender notice No.6/2006-07 dated 2-5-2006, whereby sealed tenders were invited in two bid system for transportation of coal by hiring of equipment such as pay loaders and tippers etc. from Gondegaon O.C. Mines of Nagpur area to Godhni Railway siding, from the experienced and reputed Contractors, who have in their name a prime Contractor experience of having successfully executed works of similar nature (Removal of coal from Face/Coal transportation/ Wagon loading/Removal of shale/Removal of extraneous material etc.) valuing 65% of the annualized value of the work put to tender in any year during last 7 (seven) years ending last day of month previous to the one in which bid applications are invited [Annualized value of work is Rs.14,33,18,500/- and 65% of the annualized value works to Rs.9,31,57 .057 .50 say Rs.9,31,57,000/-]. The learned Senior Counsel for the petitioners further contended that the petitioners submitted their bid along with others, including respondent No.4 as per the schedule mentioned in tender document. It was contended that condition No.3 of tender documents stipulates qualification of tender. Clause 3.1 contemplates that in the event pre-qualification of potential bidder or bidders has been undertaken, only bids from pre-qualified bidders will be considered for award of contract. These qualified bidders should submit with their bids any information updating their original pre-qualification applications or, alternatively, confirm in their bids that the originally submitted pre-qualification information remains essential correct as of the date of submission of bid. The learned Senior Counsel for the petitioners further contended that Clause 3.2 of the tender document stipulates that if the employer has not undertaken pre-qualification of potential bidders, all bidders shall require to include the information and documents mentioned in clauses (a) to (k) with their bids. Shri. Bhangde, learned Senior Counsel submitted that the intending bidder was required to submit a declaration in support of the authenticity of the credential submitted by him along with the tender in the form of affidavit as per the format provided in the bid document as Annexure A-1, as mentioned in the note in Clause 3.2.

3. Shri. Bhangde, learned Senior Counsel for the petitioners, further contended that Clause 3.3 stipulates that the bidder, who shall fulfill the conditions mentioned in sub-clauses (a) to (d) of clause 3.3 would qualify for award of contract. Those conditions are (a) The intending tenderer must have in his name as a prime Contractor experience of having successfully executed works of similar nature (such as transportation of coal/ removal of coal and wagon loading/removal of shale/removal of extraneous materials etc. for coal transportation) valuing 65% of the annualized value of the work put to tender in any year during 7 (seven) years ending last day of month previous to the one in which bid applications are invited.

(b) Evidence of possessing adequate working capital (at least 20% of the annualized value of this work) inclusive of access to lines of credit and availability of other financial resources to meet the requirement.

(c) Ownership of a fleet of minimum 1/3rd of the tipping truck/trucks and equipments required for the annualized work.

(d) Financial turn over and cost of completed works of previous works shall be given a weightage of 5% per year (Average annual rate of inflation to bring them it at current price level).

The learned Senior counsel for the petitioners c








































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