IN THE HIGH COURT OF JUDICATURE AT PATNA
RAJIV ROY, J.
CWJC No.16871 of 2022
(6.7.2023)
Brahmcharini Construction LLP ... Petitioner
vs.
State of Bihar & Ors. ... Respondents
Government Contract–Settlement of sand ghat for the district of Bhojpur–petitioner firm consists of members which include Randhir Kumar and Uma Devi who were earlier blacklisted by the respondents and thus disqualified to participate in the auction of the State Government–Clause 7 of the tender notice clearly incorporated that those participating in it will have to file an affidavit stating that any of the Director of the partnership firm / company is/are not blacklisted by the state government or central government petitioner fully aware of clause 7 (Gha) of the tender notice as also the fact that two of its partners are blacklisted cannot agitate the act of the respondents is/are unjustified–Writ being devoid of merit, dismissed. (Paras 5, 13, 14 and 19)
Rajiv Roy, J. – Heard Mr, Jai Vardhan Narayan, learned counsel for the petitioner and Mr. Naresh Dikshit, Special P.P. for Mines.
2. The petitioner seeks the following reliefs in this writ petition.
(i) for issuance of an appropriate writs in the nature of mandamus declaring the petitioner's firm to be eligible for participating in the Government Tenders as a legally incorporated LLP under the LLP Act, 2008 and directing the Respondent No. 4, the District Magistrate, Bhojpur not to disqualify the firm as it filed e-tender on 14.11.2022 pursuant to the advertisement issued on 16.10.2022 for settlement of sand ghats for the district of Bhojpur on the ground that some of its partners had earlier been blacklisted to participate in the mining activity;
(ii) according to the writ petitioner, the same is totally in contravention of proviso to Section 5 of the LLP Act, 2008 as also that the LLP has a separate legal entity and legal status from that of its partner and a partner cannot be hold responsible for another partners misconduct or negligence as there is no joint liability in the case of LLP;
(iii) for the issuance of directions, orders or writs in the nature of mandamus declaring the action of the District Magistrate Bhojpur, (the Respondent No. 4) as illegal and in contravention of the provisions of the statutory provisions vis-a-vis disqualifying the petitioner for participating in the auction proceeding in Cluster No. 40 Son Ghat District Bhojpur in which the petitioner had filed e-tender on 14.11. 2022 pursuant to the advertisement issued by the respondent no. 4 on 16.10.2022 and altogether a sum of Rs. 2,66,62,500/- was also deposited as a security deposit.
(iv) for issuance of directions, orders and writs in the nature of mandamus directing the respondents to forthwith allow it to participate in the fresh auction proceeding which was earlier held on 21. 11. 2022 as the petitioner's firm was duly qualified to participate in the aforesaid auction proceeding;
(v) for issuance of an appropriate order or writ in the nature of mandamus directing the respondents not the proceed further in regard to settlement of Sand Ghat appertaining to Cluster No. 40 Sand Ghat District Bhojpur, since the very auction proceeding organized and conducted on 21.11.2022 is arbitrary and in utter violation the statutory provisions disqualifying the petitioner to participate in the aforesaid auction proceeding.
3. The case of the petitioner that it is a company incorporated under Limited Liability Partnership, Act 2008 (henceforth for short ‘the LLP”) with the name of Brahmcharini Constructions.
4. Pursuant to the issuance of the tender notice dated 14.11.2022 for Cluster No. 40, Sand Ghat in the District of Bhojpur, the petitioner firm participated and submitted its tender. It is to be noted that the last date of filing of the tender was 14.11.2022 and the auction proceeding was scheduled for 21.11.2022.
5. However, on 19.11.2022, the petitioner firm received an e-mail by which it was informed that it has been disqualified on the ground that two of its partners namely, Randhir Kumar and Uma Devi has been blacklisted by D.M letter no. 221 dated 24.01.2020 and letter no. 220 dated 24.02.2020 respectively (the e-mail is attached as annexure 3 to the petition).
6. The petitioner firm immediately filed a representation on 20.11.2022 before the District Magistratecum- Collector, Bhojpur with a request to consider ‘the LLP’ as separate legal entity and to allow participation. As itwas not allowed to participate the writ petition.
7. The further submission of the learned counsel for the petitioner firm is that subsequently, the respondents filed counter affidavit by which they have brought on record letter no. 482 dated 03.12.2022 showing rejection of representation by reasoned order.
8. It is his submission that prior to the filing of counter affidavit, neither he was served the copy nor he was aware of such order. He, however, concedes that despite the receipt of the
Disqualification due to blacklisting applies to partnerships where designated partners impact eligibility, underscoring the authority's interpretation of tender conditions in public interest.
The decision to disqualify a bidder from a tender process does not require a reasoned order and should defer to the understanding and appreciation of the tender documents by the employer of the proje....
The Court emphasized that prior debarment of a partner cannot preclude a reconstituted firm from participating in future tenders, provided proper notifications are made.
A participant in a tender process must disclose any prior blacklisting, which renders them ineligible if concealed.
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