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HIRANMAY BHATTACHARYYA
C. Doctor and Co. Private Limited – Appellant
Versus
Bharat Heavy Electricals Limited – Respondent
JUDGMENT :
(Hiranmay Bhattacharyya, J.)
The writ petitioner has prayed for issuance of a writ in the nature of mandamus to command the respondent to set aside and/or quash the decision contained in the letter dated 18.06.2021 issued by the General Manger of Bharat Heavy Electricals Ltd. and to direct the respondent no. 1 to act in terms of the Office Memorandum dated 12.11.2020.
2. The writ petitioner claims to be engaged in the business of construction of ventilation systems and other related works in power plants, metros, road and rail tunnels and other infrastructure development projects.
3. The writ petitioner company claims to have been awarded nine different tenders from various regions of Bharat Heavy Electricals Limited (for short "BHEL") power sectors for providing ventilation works at different places. Pursuant to signing of the agreement with BHEL, the petitioner had to provide contract performance securities at the rate of 10% of contract values. The petitioner claims to have deposited some of such securities in terms of Bank Guarantee and for others it was partly in cash and the balance in the form of bank guarantee. The contracts which are the subject matter of this w
BHEL, as a government company, is bound by the Office Memorandum dated 12.11.2020 to reduce Contract Performance Guarantees for existing contracts, regardless of restrictive conditions imposed.
The main legal point established in the judgment is that the benefits conferred by Government Orders extending relaxation in performance security and related guarantees were intended for contractors ....
A micro and small enterprise is not exempt from providing a performance security in a tender if the tender is issued by an independent company, as per the provisions of the U.P. Procurement Manual.
Rule 232 deals with general principles for award of grants-in-aid for centrally sponsored schemes.
Government decisions related to tenders must adhere to established guidelines, ensuring fairness, justice, and reasonableness.
The main legal point established in the judgment is the illegality of requiring additional performance security for unbalanced bids in public procurement prior to the amendment, emphasizing the need ....
The court affirmed that a performance security cannot be withheld post-acknowledgment of contract performance, and interim relief must balance equities in arbitration under Section 17 of the Act.
Government procurement processes must ensure fairness and adherence to legal norms, avoiding arbitrary exclusions.
The court recognized the legality of reducing the performance guarantee from 5% to 3% in accordance with government orders due to pandemic relief initiatives.
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