IN THE HIGH COURT OF JUDICATURE AT PATNA
Partha Sarthy, J.
M/s Bhardwaj Construction - Appellant
Versus
The State Of Bihar & Ors. - Respondent
Civil Writ Jurisdiction Case No. 5093 of 2019
Decided On : 06-07-2021
Government Contract – Tender – Cancellation of work contract and direction for retender by Departmental Tender Committee – Court does not find reasoning given in order impugned by Departmental Tender Committee to be sound or sustainable – Action of respondents in coming out with order impugned under signature of Departmental Tender Committee cancelling tender for reasons stated therein and directing Chief Engineer to take steps for retender is unreasonable and irrational – Impugned order set aside and respondents directed to take consequential steps in the matter, petitioner being lowest tenderer, within a period of six weeks. (Paras 22, 23, 25 and 26)
AIR 1996 SC 11); (1999) 6 SCC 464] – Relied.
AIR 2016 SC 405); AIR 2016 SC 4946; (2005) 6 SCC 138] – Referred.
JUDGMENT
1. Heard learned counsel for the petitioner and learned counsel for the respondents.
2. The petitioner has filed the instant writ application praying therein for quashing the order contained in memo no. 1692 dated 26.2.2019 by the Departmental Tender Committee, Road Construction Department, Bihar, Patna whereby the tender bearing no. OPRMC 02/01 with respect to the work namely long term output and performance based road assets maintenance work for the roads under package no.40A/OPRMC-H/Hilsa has been cancelled and a direction for retender has been given to the Chief Engineer, South Bihar Wing, Road Construction Department, Bihar, Patna.
3. The case of the petitioner is that a notice inviting tender (hereinafter referred to as 'the NIT1) bearing NIT no. -CE (South)/RCD/OPRMC-02/01 dated 26.11.2018 was issued by the Road Construction Department, Government of Bihar with respect to long term output and performance based road assets maintenance work for the roads under package no. 40A/OPRMC-H/Hilsa. As per the NIT the last date for uploading document by the bidder was 26.12.2018, the technical bid was to be opened on 28.12.2018 at 1530 hours and the final bid on 4.1.2019 at 1700 hours. The period of completion of the work was seven years and the estimated cost value was Rs. 9251.4584 lacs.
4. It is the case of the petitioner that being interested in the work and having requisite qualification, he submitted his bid document as required under the NIT along with all supporting documents, certificates and earnest money. Thereafter, on the scheduled date and time the technical bid of the bidders as also of the petitioner were opened and the petitioner and four other bidders were declared successful by order dated 16.1.2019 after the technical bid was evaluated by the Departmental Tender Committee. One Ramjee Singh Construction Pvt. Ltd who had also succeeded in the above technical bid filed a complaint before the technical bid evaluation committee for cancellation of the tender. On 26.2.2019 the Departmental Tender Committee after considering the recommendation of the above Technical Bid Evaluation Committee accepted the recommendation regarding rejection of the above complaint filed by Ramjee Singh Construction Pvt. Ltd, but gave direction to the Chief Engineer to retender the work. It is against this order dated 26.2.2019 of the Departmental Tender Committee that the petitioner has preferred the instant writ application for the reliefs stated above.
5. It is submitted by learned counsel for the petitioner that as per the NIT the technical bid was opened on 28.12.2018 wherein the petitioner and four other bidders were declared successful. By order dated 16.1.2019 the Departmental Technical Bid Committee observed that if any objections are received by 4 pm on 21.1.2019 (wrongly printed as 21.1.2017), then the Chief Engineer, South Bihar Wing would once again call the meeting of the Technical Bid Committee wherein final decision would be taken. It was observed that in case no objection was received by the said date, the financial bid would be opened and the Chief Engineer would place the same before the Departmental Bid Committee with his recommendations. No objection was received by the cut of date of 21.1.2019 and the financial bid was opened on 21.1.2019. It was on 24.1.2019 that an objection was filed by one Ramjee Singh Construction Pvt. Ltd. i.e. 3 days after opening of the financial bid and which has led to passing of the impugned order. It is further submitted by learned counsel for the petitioner that the Model Bidding Document (MBD in short) issued by the Road Construction Department, Government of Bihar contains the Instructions to Bidders (ITB in short). Clause 26.1 thereof provides that the employer shall correct arithmetical errors and if there is any discrepancy between the unit price and the total price that is obtained by multiplying the unit price and the quantity, the Unit price shall prevail. Similarly, an error
M.I Builders Pvt. Ltd. vs. Radhey Shyam Sahu [(1999) 6 SCC 464]
Master Marine Services Pvt. Ltd vs. Metcalfe & Hodgkinson (P) Ltd. & Anr. [(2005) 6 SCC 138]
Monte Carlo Ltd v. NTPC Ltd. (AIR 2016 SC 4946)
R. v. Secretary of State for the Home Department
Tata Cellular vs. the Union of India
Afcons Infrastructure v. Nagpur Metro Rail Corporation Ltd. (AIR 2016 SC 4305)
The court upheld the cancellation of a tender based on abnormal pricing, emphasizing the need for administrative fairness and the authority's discretion in tender processes.
Cancellation of tender where L-1 bid within 5% limit, suspecting cartel without evidence, and inconsistent with prior awards exceeding limit, held arbitrary, violative of Article 14 warranting judici....
The authority to cancel a tender prevails under administrative discretion, based on the rationale of maintaining integrity, fairness, and transparency in public procurement processes.
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