IN THE HIGH COURT OF CALCUTTA
Sabyasachi Bhattacharyya, J.
Aroni Tubes Private Limited - Appellant
Versus
West Bengal Agro Industries Corporation Limited & Ors. - Respondents
W.P.A. No. 2504 of 2021; C.A.N. No. 1 of 2021
Decided On : 23-02-2021
NIT - Installation of Solar Submersible Pump - Rule 47A of the West Bengal Financial Rules, Volume I - The court discussed the contravention of the Notification dated November 19, 2004, by the NIT, and the violation of principles of natural justice. It highlighted the distinction between 'SSI Units of the State' and 'State-based Unit' under Rule 47A, and the implications of the clauses in the NIT on price preference and earnest money. The court also addressed the legality of debarring Joint Ventures from participating in the tender, citing the discretion of the Tendering Authority and the allegation of cartelization.
Fact of the Case:
The petitioner challenged a Notice Inviting e-Tender (NIT) for the installation of Solar Submersible Pump, citing illegal clauses and violation of government notifications. The respondents argued against the maintainability of the writ petition and the legality of the challenged clauses.
Finding of the Court:
The court found that the NIT contravened the Notification dated November 19, 2004, and principles of natural justice, leading to the setting aside of the impugned tender. It also ruled that the debarring of Joint Ventures was not illegal, but raised concerns about cartelization.
Issues: The issues revolved around the legality of the NIT clauses, the maintainability of the writ petition, and the implications of Rule 47A of the West Bengal Financial Rules, Volume I.
Ratio Decidendi: The court's decision was based on the contravention of the government notification, the distinction between different categories of units under Rule 47A, and the discretion of the Tendering Authority in including Joint Ventures. It also considered the presumption of cartelization and the violation of natural justice principles.
Final Decision: WPA No.2504 of 2021 was allowed, setting aside the NIT and any related actions or work orders. The court disposed of all connected pending applications without costs.
JUDGMENT
Sabyasachi Bhattacharyya, J. - The petitioner challenges a Notice Inviting e-Tender (NIT) dated January 9, 2021 floated by respondent no.1 for the work of installation of Solar Submersible Pump (50 nos.) at Jhargram District. Learned counsel for the petitioner argues that Clause 2.12 of the NIT, debarring Joint Ventures and consortia from participating in the tender, was illegal, being violative of Article 14 of the Constitution of India. That apart, the said Clause contravenes an Order dated December 18, 2020 issued by the Department of Water Resources Investigation & Development, Government of West Bengal, wherein it was stipulated that Joint Ventures, if required, will also be allowed in the tender processes as contemplated therein, which covers the present tender as well.
2. Learned counsel next argues that Clause 22 of the NIT, disallowing price preference and other concessions, violates the Notification dated November 19, 2004 issued by the Finance Department, Audit Branch of the Government of West Bengal. By the said Notification, Rule 47A was inserted in the West Bengal Financial Rules, Volume I, which provides that the State Government Departments/Directorates/Offices, etc., shall adopt the measures stipulated therein in the matter of making of purchases and execution of all works. Sub-rule (1) of Rule 47A stipulates that all registered SSI units of the State are to be given 15 per cent price preference vis- -vis large and small scale Industrial Units and other SSI units located outside the State.
3. It is further argued on behalf of the petitioner that, by the same Notification dated November 19, 2004, it was provided that registered SSI units of the State shall be exempted from payment of earnest money for tenders. Such clause was violated in the impugned NIT, since online bids for the said tender could not be uploaded without prior payment of earnest money.
4. Learned counsel for the petitioner argues that tenders having similar illegal clauses were floated earlier by respondent no.1, on which representations were made by a sister concern of the petitioner. Pursuant to such representation, such previous tenders were withdrawn, but again the same illegalities were repeated in the present impugned tender. The petitioner made a representation on January 11, 2021, pointing out the illegalities and asking for withdrawal of such illegal tender. Without considering such representation in the pre-bid meeting, the authorities proceeded with the tender and opened the technical bid on February 1, 2021, subsequently uploading it on February 4, 2021.
5. After service of the writ petition and filing of the same, the matter was enlisted on February 5, 2021, when the respondents went unrepresented. Subsequently, despite having full knowledge of the writ petition, work order was issued in favour of a third party on the morning of February 8, 2021, on which date the writ petition was taken up for hearing.
6. Learned counsel argues that Joint Ventures are independent legal entities and enjoy similar rights as partnerships, while participating in Government Tenders. Thus, such Ventures are protected under Article 14 of the Constitution of India, vitiating the clause of the impugned NIT preventing Joint Ventures from participating in the tender.
7. In this context, learned counsel relies on New Horizons Limited and another vs. Union of India and others, (1995) 1 SCC 478 and Gammon India Limited vs. Commissioner of Customs, Mumbai, (2011) 12 SCC 499 , where the concept of Joint Venture was discussed.
8. Learned counsel for the petitioner lastly contends that the clauses of the tender were tailor-made to suit the purpose of some chosen contractors. A comparison of the respective quotations, evident after opening of the price bid, proves such fact. The financial bid was opened on February 6, 2021, on a Holiday, to frustrate the instant writ petition. At least two participants have quoted the same rates, which match each other comp
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