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2020 Supreme(Pat) 440

IN THE HIGH COURT OF JUDICATURE AT PATNA
MOHIT KUMAR SHAH, J.
M/s Khushee Construction - Petitioner
Versus
The State of Bihar through the Secretary, Public Health Engineering Department & Ors. - Respondents
Civil Writ Jurisdiction Case No. 2833 of 2020
Decided On : 16-10-2020

Advocates Appeared:
For the Petitioner:Mr. P.K. Sahi, Senior Advocate, Mr. Vikas Kumar, Advocate.
For the Respondents: Mr. Alok Ranjan, AC to AAG-5.

Headnote:

Government Contract – Tender – Article 226 of Constitution of India – Cancellation of Letter of Acceptance of all groups – Serious dispute has arisen in present case with regard to submission/ non-submission of Additional Performance Guarantee, required to be furnished by petitioner – Present writ petition involves serious disputed question of facts which cannot be adjudicated in a writ petition under Article 226 of Constitution of India – On this ground alone, present writ petition is fit to be dismissed – Contract itself provides for a mode of settlement of disputes arising from contract, whereunder, petitioner can seek recourse to Arbitration for the purposes of settlement of disputes – In view of availability of an efficacious alternative remedy to petitioner, present writ petition is not maintainable – Writ petition dismissed. (Paras 9 to 12)

JUDGMENT :

1. The present writ petition has been filed for quashing the letter dated 25.01.2020, issued by the Executive Engineer, Public Health Division, Supaul (respondent no. 7), whereby and whereunder the Letter of Acceptance of all 39 groups, pertaining to notice inviting tender no. MNI-24(R-1)/2019-20, has been cancelled. The petitioner has also prayed for directing the respondents-authorities, particularly the respondent no.7 to execute agreements with the petitioner with regard to the work of all the 39 groups, for which Letter of Acceptance was issued.

2. The brief facts of the case, according to the petitioner are that the Office of the Executive Engineer, Public Health Division, Supaul had issued a notice inviting tender bearing tender notice no. MNI-24(R-1)/2019-20 for Work Design, Construction, Supply, Testing of Commissioning of Water Supply Schemes with Electrical Driven Pumps and Iron Removal Treatment Plant having CSIR technology or any other technology approved by the Government of India. The petitioner is stated to have participated in the aforesaid NIT issued by the respondent no. 7 and he was declared successful in the technical bid as also was found to be the lowest tenderer in the financial bid, as such he was declared successful in all the 39 groups, pertaining to the tender notice in question. Accordingly, the respondent no. 7 had allotted the work in question to the petitioner on 31.12.2019 and had issued 39 Letters of Acceptance in favour of the petitioner. The aforesaid Letters of Acceptance postulated furnishing of Performance Security by the petitioner, as detailed in paragraph no. 31.1 of the Instructions to Bidders along with Additional Performance Guarantee within a period of 15 days having a validity of 72 months, failing which it was stipulated that action would be taken as per paragraph no. 31.4 of the Instructions to Bidders. The petitioner is stated to have already deposited the Performance Security along with the tender documents, hence he was only required to furnish the Additional Performance Guarantee, thus the petitioner is stated to have prepared Additional Performance Guarantees for all the 39 works in the form of Fixed Deposit issued by the IDBI Bank dated 01.01.2020, whereafter all the F.Ds. in the shape of Additional Performance Guarantees were deposited in the office of the respondent no. 7. It is the case of the petitioner that after retaining the aforesaid F.Ds. for 7-8 days, the respondent no. 7 had called upon the petitioner and returned all the F.Ds. as also had told him that he was being pressurised from the higher authorities not to execute the agreement with the petitioner. The representative of the petitioner is stated to have visited the Office of the respondent no. 7 again, but to no avail, however, all of a sudden a show cause notice was issued to the petitioner on 21.01.2020, wherein it was mentioned that despite issuance of Letter of Acceptance on 31.12.2019, the Additional Performance Guarantees have not been deposited till date, hence show cause reply be filed as to why L.O.As. be not cancelled. The petitioner had then submitted a detailed reply dated 23.01.2020 stating the aforesaid facts and had also annexed photocopies of the Fixed Deposits dated 01.01.2020, whereafter, without any reason, the Letter of Acceptances of all the 39 groups were cancelled by the impugned order dated 25.01.2020, as per Clause 31.3 and 33 of the Model Bidding Document (MBD).

3. The learned Senior counsel for the petitioner has submitted that the case of the petitioner neither falls under Clause 31.3 nor under Clause 33 of the Model Bidding Document, inasmuch as the petitioner had already prepared the requisite fixed Deposits for submission, by way of Additional Performance Guarantees, on 01.01.2020 itself, however the same was not accepted by the respondent no. 7 and moreover, the petitioner has admittedly neither indulged in any corrupt or fraudulent practices. It is further submitted

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