The main legal point established in the judgment is the importance of progress in work and adherence to stipulated schedules in contractual agreements, as well as the justification for rescinding an agreement based on unsatisfactory progress.

Mridula Mishra, J.

1. In both the writ applications petitioners have prayed for quashing the order dated 18.7.2007 contained in letter No. 2479 and 2480 issued under the signature of Managing Director of Bihar Rajya Pul Nirman Nigam Ltd. (hereinafter to be referred to as the Nigam) whereby the agreement dated 25.6.2007 signed in between the petitioners and the Senior Project Engineer of the Nigam, have been rescinded, as per the direction of the Chairman of the Nigam, consequent to the discussion, held in the meeting dated 10.7.2007 convened by the Principal Secretary, Road Construction Department. Further prayer of the petitioner is for quashing the notice inviting tender dated 20.7.2007 whereby the work awarded to the petitioners are going to be re-tendered. Prayer is also for restraining the respondents from awarding the contract to any one in pursuance of the notice inviting tender dated 20.7.2007.

2. Since reliefs are similar and facts are similar as such both the applications were taken for analogues hearing and are being disposed of by a common order.

3. Petitioners in both the writ applications are company registered under the Companies Act. The Nigam issued notice dated 7.5.2007 inviting tender for strengthening and widening of 0.19 as well as 20-35 K.M. roads of National Highway 106. Petitioners in both the writ applications submitted their tender against the NIT and they were selected being lowest bidder.

4. On 16.5.2007 work order was issued and work was alloted to the petitioners. Total period for execution of work was six months and the work plan was to be submitted within ten day. From the letter dated 16.5.2007 the petitioners were asked to deposit 1% performance guarantee of the total project amount within ten days and the work was also to commence within ten days from the date of issuance of the letter. Petitioner in C.W.J.C.No. 9179 of 2007 submitted his work plan within ten days on 26.5.2007 and on 14.6.2007 the bill of quantity was prepared and approved by the Executive Engineer. N.H. Division and it was received in the office of the Nigam on 18.6.2007. Value of the work was determined as Rs. 4,48,00.000/- and 1% amount as performance guarantee amounting to Rs. 4.48,000/- was deposited by the petitioner on 24.6.2007 in the form of bank guarantee. A request was also made by the petitioner for execution of the agreement. The agreement was executed on 22.6.2007 and on 11.7.2007 work programme was issued by the Executive Engineer, As per the work programme the work was to be completed within six months from the date of execution of the agreement. The total six months was divided into four parts and for each part the time schedule was mentioned, within which the specified progress in the work was to be achieved. The schedule of physical progress and financial progress was also mentioned to be achieved within the time schedule. Time schedule of 1st part of work progressing started on 22.6.2007 and was to be completed on 5.8.2007. But even before completion of the first time schedule. agreement has been rescinded by the impugned order dated 18.7.2007.

5. The case of the petitioner of C.W.J.C. No. 9089 of 2007 is that on 14.5.2007 the tender was finalized his bid was accepted being the lowest bidder. By letter No. 1760 dated 16.5.2007 the work order intent was issued in which it was mentioned that the work would commence within ten days of the date of the letter and consequently work started on 23.5.2007. The petitioners company vide letter dated 24.5.2007 acknowledged the letter of intent and also informed that the work has started on 23.5.2007. The detail of work programme was also submitted, Vide letter No. 199 dated 21.6.2007. The respondent authorities demanded the petitioners company to deposit performance guarantee an amounting to Rs. 12.93.000/- and it was submitted on 23.6.2007. The agreement was executed on 25.6.2007 adhering to all the terms and conditions of the contract. When the work was goin