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SABYASACHI BHATTACHARYYA
India Power corporation Limited (IPCL) – Appellant
Versus
State of West Bengal – Respondent
JUDGMENT :
Sabyasachi Bhattacharyya, J.
1. The present challenge has been preferred against a cancellation of a Letter of Award (LoA) and debarment of the petitioner-company. The petitioner participated in a tender floated by the respondent no. 3 and turned out the successful bidder. LoA was, accordingly, issued to the petitioner on March 31, 2023. As per the terms of the tender document, the successful bidder was to sign the AMISP Contract and furnish the initial Performance Security within 14 days from the date of issuance of the LoA. Failure to do so shall constitute “sufficient grounds for the annulment of the award and forfeiture of the Bid Security”. In that event, the Utility may award the AMISP Contract to the next lowest Bidder.
2. The petitioner allegedly engaged the respondent no. 7, a financial service provider, to procure and to issue the performance bank guarantee to the tendering authority on behalf of the petitioner. However, on three successive occasions, the respondent no. 7 issued fake bank guarantees, upon coming to know of which the petitioner immediately lodged complaint with the police, giving rise to an F.I.R. The petitioner ultimately furnished a proper and va
A tendering authority is justified in cancelling a Letter of Award (LoA) and debarring a bidder for three years if the bidder is negligent in submitting fake bank guarantees.
The court upheld the debarment of the petitioner for failing to submit a performance guarantee on time, affirming the procedural fairness and adherence to the RFP guidelines.
The main legal point established in the judgment is the importance of jurisdiction, principles of natural justice, and procedural regularities in the tender process, as well as the consequences of ar....
The submission of a bogus Bank Guarantee by a bidder justifies a two-year ban under tender conditions, as the term 'certificate' includes documents.
The main legal point established in the judgment is the validity of the Bank Guarantee submitted by the petitioner and the application of principles of natural justice by the respondents.
The court upheld the validity of debarment and encashment of Performance Bank Guarantee due to non-performance by the petitioner under the contract, emphasizing adherence to tender conditions.
A consortium member is jointly liable for the actions of its partners during bidding, and blacklisting imposes severe consequences proportional to misconduct, requiring strict adherence to principles....
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