SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Audio Icon Pause Audio Icon
judgment-img

1991 Supreme(Cal) 388

High Court Of Calcutta
Susanta Chatterji
GOURANGA LAL CHATTERJEE - Appellant
Versus
CHIEF ENGINEER, DURGAPUR - Respondent
C. O.  3117 (W)  Of  1991
Decided On : 08/13/1991

Advocates Appeared:
A.N.MUKHERJEE, AMAL BARAN CHATTERJEE, AMIT CHAKRABORTI, ASHOKE BISVAS, ASOKE BANERJI, BHASKAR SEN, S.K.BOSE

The decision of the authorities concerned to award a contract based on the post-qualification criteria set out in the tender documents cannot be challenged in a writ court unless there is an allegation of bias or mala fide.

Headnote:

CONTRACT - TENDER - POST-QUALIFICATION OF TENDERERS - ELIGIBILITY CRITERIA - DISQUALIFICATION OF TENDERER - INTERIM INJUNCTION - VACATION.

Fact of the Case:

The petitioner, a construction company, challenged the decision of the respondents, the highway authorities, to award a contract to the added party, Larsen and Toubro, instead of the petitioner, despite the petitioner's lowest bid. The petitioner alleged that the decision was whimsical, arbitrary, mala fide, and made in colourable exercise of power.

Finding of the Court:

The court found that the respondents had taken a reasoned decision to award the contract to the added party based on the post-qualification criteria set out in the tender documents. The court held that the petitioner had failed to meet the eligibility criteria, particularly with regard to the location of equipment, required annual turnover, and required experience in road building.

Issues: 1. Whether the respondents' decision to award the contract to the added party was whimsical, arbitrary, mala fide, and made in colourable exercise of power. 2. Whether the petitioner met the eligibility criteria set out in the tender documents.

Ratio Decidendi: The court held that the respondents had taken a reasoned decision to award the contract to the added party based on the post-qualification criteria set out in the tender documents. The court found that the petitioner had failed to meet the eligibility criteria, particularly with regard to the location of equipment, required annual turnover, and required experience in road building. The court also held that the interim injunction restraining the issuance of the work signal was causing hardship and vacated the same.

Final Decision: The court vacated the interim injunction restraining the issuance of the work signal and directed that the matter be finally heard expeditiously.

S. CHATTERJI, J.

( 1 ) THE writ petition was moved on 4th of February, 1991 before N. K. Mitra J. and an ad interim order as prayed for was granted for a period of 2 (two) weeks. The matter subsequently appeared before this Bench on l0th of April, 1991 and the interim order of status quo as on that date was allowed to continue. The matter further appeared on 29. 4. 91 and this Court made it clear that the respondents may take all effective steps but there will be no issuance of the work order without the leave of the Court. It was further made clear that any step that would be taken by the respondents besides taking steps for issuance of the work order, will abide by the result of the writ petition. An application for addition of party was made by Messrs Larsen and Toubro Limited (ECC Construction Group ) and prayed for vacating the interim order.

( 2 ) THE writ petitioner has prayed for a writ of Mandamus to command the respondents to rescind the impugned decision as not to award contract in respect of Packages-VII in favour of the petitioner and further to command the respondents to act in accordance with the result of the tender submitted by the petitioner. It is stated in detail that the petitioner is a Government Contractor having various experiences in global tender and big project. On 2nd April, 1990, an advertisement was published in the "statesman" that the Chief Engineer, Durgapur Express Way, P. W. D. (Roads) Directorate inviting tenders for execution of works of Indian National Highway Project with regard to the balance of work of road contract packages- (i ). . . III (18 K. M. to 30 K. M.) (ii ). . . IV (30 K. M. to 40 K. M.) (iii ). . . V ( 45 K. M. to 59 K. M. of Calcutta-Durgapur Expressway, a two lane at Grade Highway Calcutta-Plasit Section.)

( 3 ) IT is placed on record that according to tender, every tenderer was required to inspect the Bidding documents from the Office of the Superintending Engineer (Construction Circle ). National Highway Durgapur Expressway at Purta Bhavan, Salt Lake City and obtained a complete set of Bidding documents upon payment of a non-refundable fee of Rs. 6,000/- between 17th April, 1990 and 31st May, 1990. It is stated that the National Highway Project (World Bank Aid India) had published Booklets being Volume No. 1 to Volume No. V. In Volume No. l of the said Booklets of the National Highway Project, it was mentioned that the tender will be decided on the basis of the post-qualification of the tenderers with respect of information furnished by the tenderers. Volume V of the said Booklets deals with the Schedule for post-qualifications of Contractors. The petitioner filed his tender and besides the petitioner there were other tenderers viz. Messrs Larsen and Toubro (L and T) , Ansal Properties, Bridge and Roof, Central Concrete and Allied Products Private Limited, Asian Technician, Tantia, Oriental Structural India Limited and Recondo. The quotations of all the tenderers regarding Package Nos. III, IV and V have been filed in a Tabular Form. According to the petitioner firm, they fulfil all the eligibility criteria and they have unblemished records of having complied with all the post-qualification requirements. The respondents are alleged to have taken a whimsical decision to award the contract in favour of the petitioner. Their decision is challenged as whimsical, arbitrary, mala fide and made in colourable exercise of power. Elaborating all these points, the petitioner firm has come to this Court to seek reliefs on the ground that the impugned decision on the part of the respondents to ignore the petitioner's lowest tender in respect of Package Nos. IV-V is neither fair nor honest. The decision of the respondents in depriving the petitioner's right to obtain the contract is unjust and unfair. The writ petition was entertained and an interim order was made and subsequently modified as indicated above.

( 4 ) AN application for addition of party has since been filed by Messrs










Click Here to Read the rest of this document

1
2
3
4
5
6
7
8
9
10
11
SupremeToday Portrait Ad
supreme today icon
logo-black

An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers

Please visit our Training & Support
Center or Contact Us for assistance

qr

Scan Me!

India’s Legal research and Law Firm App, Download now!

For Daily Legal Updates, Join us on :

whatsapp-icon Back to top