High Court Of Calcutta
Pinaki Chandra Ghose, Soumen Sen, JJ.
Bkb Transport (P) Limited – Appellant
Versus
Damodar Valley Corporation – Respondent
AST 607 of 2010 ASTA 232 of 2010 M.A.T. No. of 2010 C.A.N. No. 9601 of 2010 W.P.No.18884(W) of 2010
Decided on : Aug 05, 2011
TENDER - Cancellation - Damodar Valley Corporation - Fly ash transportation - Specialized job - Environmental protection - Restrictive qualifying requirements - Cancellation of tender - Fresh tender - Public interest - Judicial review - Held, cancellation of tender was arbitrary, mala fide and without any justification.
Fact of the Case:
The petitioner, engaged in the business of transportation of fly ash, submitted its bid in response to a tender notice issued by the respondent authorities for evacuation of ash from the ash ponds of Bokaro Thermal Power Station, Damodar Valley Corporation. The petitioner qualified in the techno-commercial bids and was invited for rate negotiation. The petitioner's rates were found to be the lowest and were accepted by the tender committee. However, the petitioner was shocked to receive a cryptic communication intimating that the tender had been cancelled. The petitioner challenged the cancellation of the tender.
Finding of the Court:
The Court held that the cancellation of the tender was arbitrary, mala fide and without any justification. The Court found that the respondent authorities had not given any reason for the cancellation of the tender and that the reasons given in the affidavit in opposition were not supported by any evidence. The Court also found that the respondent authorities had not followed the procedure laid down in the tender document for cancellation of the tender.
Issues: Whether the cancellation of the tender was arbitrary, mala fide and without any justification.
Ratio Decidendi: The Court held that the cancellation of the tender was arbitrary, mala fide and without any justification on the following grounds: * The respondent authorities had not given any reason for the cancellation of the tender. * The reasons given in the affidavit in opposition were not supported by any evidence. * The respondent authorities had not followed the procedure laid down in the tender document for cancellation of the tender.
Final Decision: The appeal was disposed of on the above terms. Photostat certified copy of this judgment, if applied for, be supplied to the parties.
PINAKI CHANDRA GHOSE, J.
1. THE instant appeal is arising out of an order dated 9th September, 2010 of refusal to pass an ad interim order of injunction restraining the respondent authorities not to give effect and/or further effect to their letter dated August 30, 2010 as Section 8 of the Environment (Protection) Act, 1986 Section 2(d) of the said Act Right to Information Act, 2005 Section 8(1)(h) of the Act Damodar Valley Corporation Act Section 48 of the said Act Section 48 of the Damodar Valley Corporation Act. Motor Vehicles Act, 1989 Motor Vehicles Act, 1989 and the Rules Motor Vehicles Act, 1988 and the Rulesalso to restrain them from inviting any fresh tender covering the subject-matter of tender notice No. BT/B (O and M)/PH(C)/TR/1051 dated 21st January, 2010 issued by the respondent No.4.
2. THE learned Single Judge although admitted the writ petition but had refused to pass any ad interim order in favour of the writ petitioner and hence the instant appeal. By consent of the parties we have taken up for hearing the writ petition itself. THE writ petitioner is engaged in the business of transportation of various articles including fly ash generated at the Thermal Power Stations.
In or about 21st January, 2010, the Bokaro Thermal Power Station of Damodar Valley Corporation issued a tender notice inviting bids for evacuation of ash from the ash ponds of Bokaro Thermal Power Station, Damodar Valley Corporation including nuisance free transportation and disposal of ash in abandoned mines of Central Coalfields Limited.
3. ONE of the qualifying criteria for participating in such tender is that the tenderer should have an experience of having executed similar work during last seven years ending December, 2009. The expression "similar work" has been defined in the manner following:
"similar work” means executed/completed work of evacuation of ash generated from Thermal Power Plants only by using machinery and its annoyance free transportation/disposal".
In response to the said tender, the writ petitioner submitted its bid in two parts, namely, techno commercial bids and price bids. The petitioner qualified in the techno commercial bids. Subsequently on 7th May, 2010, the petitioner was informed by the respondent authorities that the price bids of the petitioner would be opened on 11th May, 2010. The price bid of the petitioner was found to be the lowest. Thereafter, the petitioner was asked to furnish analysis of rates quoted against each item by the respondent on 12th May, 2010 which on following 17th May, 2010 the petitioner provided such analysis of item wise quoted rate.
4. THEREAFTER, on 18th May, 2010 the petitioner was requested to attend "rate negotiation meeting". The purpose of the said meeting is to have a negotiation in respect of the "offered rate" against "referred NIT" which according to the notice was to be held in the chamber of Chief Engineer and Project Head, DVC, BTPS. The petitioner duly attended the said meeting. The petitioner claims that upon such negotiation, a negotiated price was arrived at and the same was accordingly accepted by the tender committee and such negotiated price was accordingly finalized. After the said meeting while the petitioner was eagerly waiting for the Work Order to be issued in respect of the said tender, the petitioner was shocked and surprised to receive a very cryptic communication dated 30th August, 2010 intimating that the DVC had cancelled the said tender. The said cryptic communication reads as under: Sub:- Cancellation of the tender Ref: - NIT No. BT/B(O and M)/PH(C)/TR/1051 dated 21/01/2010
"All the offers/tenders received against above referred NIT for the work Evacuation of ash from Ash Ponds of BTPS, DVC, Bokaro including nuisance free transportation and disposal of ash in abandoned mines of CCL is hereby cancelled."
Being aggrieved by the said cancellation, the petitioner filed the writ petition being W.P.No.18884 (W) of 2010 challenging the letter no. BT/B(O
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