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2023 Supreme(Cal) 1102

IN THE HIGH COURT AT CALCUTTA
Sabyasachi Bhattacharyya, J.
Jai Hind Logistics and another – Petitioners
Versus
Indian Oil Corporation Ltd. and others – Respondents
W.P.A. No. 4640 of 2023
Decided On : 19-07-2023

Advocates:
Advocate Appeared:
For the Petitioner: Mr. Debabrata Saha Roy, Mr. Pingal Bhattacharyya, Mr. Subhankar Das, Mr. Neil Basu, Mr. Sankha Biswas
For the Respondent: Mr. Amit Kr. Nag, Mr. Partha Banerjee, Mr. P.K. Dutta, Mr. Anant Shaw, Mr. Santanu Deb Roy, Mr. Mainak Ganguli, Mr. Kallol Bose, Mr. Joy Chakraborty, Ms. Ipsita Ghosh

Participants in a tender process, after becoming unsuccessful, should not be permitted to turn back and challenge the tender process, especially when they fail to substantiate specific allegations of fraud or forgery.

Headnote:

TENDER - FORGERY - TWO-BID SYSTEM - [CENTRAL GOVT. (IOCL) - TANK TRUCK (TT) OWNERS] - The court dismissed a writ petition challenging the acceptance of bids of successful bidders in a tender floated by IOCL for road transportation of bulk petroleum products, where the petitioner alleged that the successful bidders furnished forged documents. The court held that the petitioner failed to substantiate the allegations of fraud/forgery with specific particulars and that the IOCL independently verified the genuineness of the documents offered by the successful bidders.

Fact of the Case:

The petitioner, a participant in a tender floated by IOCL under a Two-Bid System from Tank Truck (TT) owners for an award of contract for road transportation of bulk petroleum products, was disqualified at the technical evaluation stage. The petitioner challenged the acceptance of the bids of the successful bidders, alleging that they furnished forged documents.

Finding of the Court:

The court found that the petitioner failed to establish specific particulars of fraud/forgery, that the documents submitted by the successful bidders were prima facie genuine, and that the IOCL independently verified the genuineness of the documents with the registering authority.

Issues: 1. Whether the successful bidders committed fraud or forgery in uploading invalid or manufactured documents. 2. Whether the IOCL acted without authority in accepting the bids of the successful bidders.

Ratio Decidendi: 1. The petitioner failed to substantiate the allegations of fraud/forgery with specific particulars, as required under Order VI Rule 4 of the Code of Civil Procedure. 2. The IOCL independently verified the genuineness of the documents offered by the successful bidders with the registering authority, which confirmed their authenticity.

Final Decision: The court dismissed the writ petition, holding that the petitioner's allegations of fraud/forgery were not substantiated and that the IOCL did not commit any error in accepting the bids of the successful bidders.

JUDGMENT :

Sabyasachi Bhattacharyya, J.

1. The petitioner and the respondent nos.9 and 10 participated in a tender floated by the IOCL (Indian Oil Corporation Limited) under a Two-Bid System from Tank Truck (TT) owners for an award of contract for road transportation of bulk petroleum products. The petitioner participated therein but was disqualified at the technical evaluation stage.

2. The present writ petition has been preferred challenging the acceptance of the bids of respondent nos.9 and 10 as successful bidders.

3. It is argued that, after the technical stage being crossed, a reverse auction was to be held within the contemplation of the tender. Thereafter, the bidder with the newest vehicles would be chosen as successful and work orders would be issued to them.

4. In the present case, it is argued, the respondent nos.9 and 10 furnished forged documents, on the basis which they were declared to be successful bidders. It is argued by the petitioner that fraud vitiates all and, as such, even the writ court can enter into the question as to whether the forgery committed by the respondent nos.9 and 10, allegedly in collusion with the IOCL, vitiates the tender process.

5. Learned counsel for the petitioner, in such context, cites Munjal Showa Ltd. Vs. Commissioner of Customs and Central Excise (Delhi-IV), reported at 2022 SCC OnLine 1296, where it was held that fraud vitiates everything. Learned counsel also relies on (2008) 12 SCC 306 [Behari Kunj Sahkari Avas Samiti Vs. State of Uttar Pradesh and others], where it was observed by the Supreme Court that a person committing fraud is not entitled to any equitable remedy.

6. Learned counsel for the petitioner submits that there were gross discrepancies in the RC Books/Smart Cards offered in respect of TTs of the respondent nos.9 and 10, insofar as the copies thereof annexed to the opposition of the IOCL and the said respondents are concerned.

7. Uploading of RC Book/Smart Card is mandatory in tenders for engagement of TTs, it is contended. In support of such submission, the petitioner cites an unreported judgment of this Court dated April 19, 2022 passed in WPA No.4391 of 2022. In the said context, an unreported Division Bench judgment of this Court passed on July 18, 2022 in MAT 687 of 2022, whereby the Single Judge secision cited above was overturned, has also been cited. Lastly, an unreported Supreme Court judgment dated September 30, 2022, passed by the Supreme Court in Civil Appeal No.7038 of 2022, which distinguished the Division Bench judgment and upheld the judgment of the learned Single Judge, is also cited by the petitioner.

8. It is submitted next that merely because there is some disputed question of fact, the writ court need not necessarily refuse to entertain a writ petition. In support of such contention, learned counsel places reliance on 2021 SCC OnLine SC 99 [Unitech Limited and Others Vs. Telangana State Industrial Infrastructure Corporation (TSIIC) and Others], where portions of the judgment reported at (2004) 3 SCC 553 [ABL International Limited and another Vs. Export Credit Guarantee Corporation of India Ltd. and others] were also considered.

9. Learned counsel submits further that, in an appropriate case, where there is a violation of a fundamental right, in the present case under Article 14 of the Constitution of India, and/or natural justice, alternative remedy is not a bar. In such context, the petitioner cites Madhya Pradesh High Court Advocates Bar Association and Another Vs. Union of India and Another, reported at 2022 SCC OnLine SC 639.

10. Learned counsel for the respondent no.9 argues that the authenticity of the Registration Certificates issued by the concerned RTO (Regional Transport Officer), with the seal and signature of the registering authority, has not been rebutted. It is evident from the said Certificates that the vehicles were registered on November 25, 2022 and the Registration Certificates were issued on November 28, 2022. The authenticity of

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