1. The office of the Superintending Engineer, State Highway Circle-IV, Public Works (Roads) Directorate, Government of West Bengal, respondent no.2 floated a tender for construction of a bridge over river Kaljani (near Balarampur) including approach link at 22 Km. of Dinhata-Balarampur-Chilakhana Road under Coochbehar highway division in the district of Coochbehar (hereafter the project). The estimated cost of the project upon issuance of corrigenda was ultimately reduced from Rs.33,32,13,000/-, as originally fixed, to Rs. 32,05,19,109/-. Consequently, the earnest money was reduced from Rs. 66,64,302/- to Rs. 64,10,400/-.

2. The first petitioner (hereafter the company) along with M/s. Makintosh Burn Ltd., respondent no.3 and Rajpat Contractors & Engineers Ltd., respondent no.4 responded to the tender notice. They were called upon to be present on the occasion of opening of the financial bids. It was found that while the company quoted a rate of 7% above the estimated cost, respondents 3 and 4 quoted 12.88% and 27% respectively above the estimated cost. Since the official respondents considered the rates quoted to be very high, the respondent no.2 by his letter dated 16.3.