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2019 Supreme(Pat) 90
IN THE HIGH COURT OF PATNA
Rajeev Ranjan Prasad, J.
N.P.C.C. - P.S.K. - J.V., Through Its Power Of Attorney Holder Raman Prasad Gupta Son Of Surya Prakash Gupta - Appellant
Vs.
Indira Gandhi Institute Of Medical Science, Sheikhpura, Patna -Respondent
Civil Writ Jurisdiction Case No. 12330 of 2018
Decided On : 14-03-2019
P.K. Shahi, Adv., Vikas Kumar, Adv., Sunil Kumar Singh, Adv.
The decision-making process for tenders should be in public interest, and non-disclosure of material information in the tender affidavit can warrant re-tendering.
Headnote:
Tender Notice - Construction Work - NIT No.-Re-Tender Notice No. Engg/138/C/E/E - Tender - [Clause 7.6 (J) of the NIT] - The court analyzed the format of the affidavit required for the tender, the petitioner's non-disclosure of debarment by the Road Construction Department, Government of Jharkhand, and the subsequent decision for re-tendering.
Fact of the Case:
The petitioner participated in a tender for construction work of a hospital. The petitioner was declared L-1 and price negotiation was finalized, but the tender was cancelled due to non-disclosure of debarment by the Road Construction Department, Government of Jharkhand.
Finding of the Court:
The court found that the petitioner failed to disclose the debarment in the required affidavit, leading to the decision for re-tendering. The court dismissed the writ application, emphasizing the public interest in timely construction of the hospital.
Issues: Non-disclosure of debarment in the tender affidavit, decision for re-tendering, delay in hospital construction due to litigation.
Ratio Decidendi: The decision-making process leading to re-tendering was lawful and in public interest. Non-disclosure of debarment in the affidavit warranted the decision for re-tendering.
Final Decision: The writ application was dismissed, and the court observed the delay in hospital construction due to the litigation.
Rajeev Ranjan Prasad, J.
1. This writ application has been preferred seeking the following reliefs:-
"i. For issuance of an appropriate writ/order/order/direction quashing the office order containing memo number 149/EC/18 Dated08/06/2018 whereby and whereunder tender notice published by NIT No.-Re-Tender Notice No. Engg/138/C/E/E- Tender published for construction work of 500 Bedded Hospital Building in the Campus of IGIMS was cancelled.
ii. For direction to the respondent authorities to allocate the aforesaid work for construction of 500 Bedded Hospital Building in the Campus of IGIMS was cancelled as petitioner was declared L-1 and price negotiation was also finalized by the parties.
iii. For further direction to not to proceed in Tender notification in Tender notification No.- Tender Notice namely - Re - Tender Notice No. - Engg/07/C/E/E - Tender/2018-19 Dated13/06/2018 by which Tender has been published for 500 Bedded Hospital Building in the Campus of IGIMS, Sheikhpura."
2. It is the case of the petitioner that pursuant to the tender notice inviting application for construction of the work of 500 Bedded Hospital Building in the campus of Indira Gandhi Institute of Medical Science (hereinafter in short 'IGIMS') vide Annexure2 to the writ application, the petitioner finding itself qualified and eligible participated in the tender. Along with tender document the petitioner also filed an affidavit as required stating that his firm has neither been blacklisted/debarred nor has abandoned any work in any Government Department, India nor any contract awarded to him for such works have been rescinded till date. A copy of affidavit dated 05.04.2018 has been annexed as Annexure-3 to the writ application.
3. It is further case of the petitioner that in Technical Bid the petitioner qualified, 21 days after opening of the Technical Bid, Financial Bid of all the participants were opened and vide letter no. 18 dated 22.05.2018 the petitioner was informed that the tenders submitted by him in the aforesaid work has become lowest. The Tender Committee had called for justification of rates, thereafter, the petitioner submitted a detail analysis. A meeting for rate negotiation was also held on 23.05.2018. Pursuant to the said negotiation, showing a good gesture petitioner vide letter no. 145 dated 24.05.2018 to the 'IGIMS' offered a lump sum discount of Rs. 55 lakhs from the quoted price. A copy of the letter dated 24th May, 2018 written on behalf of the petitioner firm is Annexure-7 to the writ application.
4. It is thereafter, when a complaint was received in the office of the 'IGIMS' whereunder it was informed that the name of the petitioner firm finds place in the debarred list. The petitioner was called upon vide Annexure-8 series issued under the signature of the Superintending Engineer, IGIMS, Patna to submit his clarification on the complaint received regarding debarment in Road Construction Department, Ranchi (Jharkhand). The petitioner, thereafter, vide letter dated 28th May, 2018 as contained in Annexure-9 to the writ application submitted it's clarification. It was the contention of the petitioner in it's reply that the petitioner company has been restricted to participate in other tenders of the Road Construction Department, Government of Jharkhand, Ranchi only till the completion of the work being executed by NPCC Limited (the petitioner). A contention was raised that the blacklisting/debarment means suspension of business. The debarment, in the opinion of the petitioner, in effect constitutes blacklisting and debarment is as one for blacklisting as the result of both actions are identical. The action of blacklisting/debarment is to be taken under enlistment rules by the Registering Authority only and therefore, it was submitted that NPCC Ltd. (petitioner ) is not registered with Road Construction Department, Ranchi. The petitioner was still continuing with the work and was doing business with Road Construction Department and
