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2022 Supreme(Gau) 1155

IN THE HIGH COURT OF GAUHATI, (HIGH COURT OF ASSAM, NAGALAND, MIZORAM AND ARUNACHAL PRADESH), KOHIMA BENCH
NELSON SAILO, ROBIN PHUKAN, JJ.
M/s. HI-TECH Construction And Co. and 5 Ors. – Petitioners
Versus
The Chief Secretary, Government Of Nagaland and 4 Ors. – Respondents
WA No.7 Of 2022
Decided On : 21-07-2022

Advocates Appeared:
For the Petitioner: S. Borgohain.

Headnote:

Constitution of India, 1950 – Article 226 – Power of High Courts to issue certain writs –This writ appeal is directed against Judgment & Order passed by learned Single Judge in WP(C) whereby, WP(C) was dismissed and as for remaining two writ petitions, it was held that nothing survived for consideration in view of dismissal of WP(C) – Case has a checkered history and facts of case may be narrated as below – Held, Learned counsel for appellants have further submitted that since Apex Court in Tata Cellular vs Union of India, reported in has held that judicial review will apply to exercise of contractual powers by Government by Government bodies if there is arbitrariness or favouritism – He submits that same ratio would apply to present case and particularly, when Bench which rendered decision in Tata Cellular vs Union of India (supra) was a larger Bench than Bench which rendered decision in M/S N.G. Projects Limited (supra) – We, however, find that Apex Court while deciding M/S N.G. Projects Limited (supra) had also taken into consideration decision of same Court in Tata Cellular vs Union of India (supra) and therefore, latter cannot be applied ipso facto on account of strength of the Bench – Accordingly dismissed.

JUDGMENT :

[Nelson Sailo, J.]

1. Heard Mr. A Zhimomi, learned counsel for the appellant, Mr. T.B Jamir, learned Senior Addl. Advocate General, Nagaland for the State respondent Nos. 1 to 3 and Mr. I Iralu, learned Senior counsel assisted by Mr. L Iralu, learned counsel for the respondent No. 5. None appears for respondent No. 4 despite service.

2. This writ appeal is directed against the Judgment & Order dated 16.03.2022 passed by the learned Single Judge in WP(C) No. 52/2020, WP(C) 93(K)/2021 & WP(C) No. 94(K)/2021 whereby, WP(C) No. 52/2020 was dismissed and as for the remaining two writ petitions, it was held that nothing survived for consideration in view of the dismissal of WP(C) No. 52/2020. The case has a checkered history and the facts of the case may be narrated as below.

3. On 13.09.2019, the Nagaland Public Works Department (NPWD) floated a Notice Inviting Tender (NIT) for five projects including Tenning to Lekie project, which is the work in question. The appellant No. 1 as Joint Venture participated in the tender process and its financial bid was found to be 0.007% below Bill of Quantity (BOQ) rate. Having quoted the lowest but not having been issued the Letter of Acceptance (LOA), the appellant No. 1 filed WP(C) No. 249(K)/2019 seeking a direction for the issuance of LOA in its favour. In the meantime, the Chief Engineer, NPWD in exercise of the powers conferred under clause 2.16.1 of the Standard Bidding Document (SBD) vide Corrigendum dated 6.12.2019 & 16.12.2019 cancelled the NIT dated 13.09.2019. The Corrigendum dated 16.12.2019 relates to the work in question i.e., Tenning to Lekie project. Thereafter, the Chief Engineer, NPWD on 18.12.2019 issued a fresh NIT for the work in question. Challenging the tender cancellation vide Corrigendum dated 16.12.2020 and the second NIT dated 18.12.2019, the appellant No. 1 filed WP(C) No. 75/2020 before the Principal Seat of this Court at Guwahati and later, the same was transferred to the Kohima Bench, where it was renumbered as WP(C) No. 3(K)/2020.

4. On 03.03.2020, the technical bid of all the bidders were opened and the appellants, the respondent No. 5 and one other bidder were declared to be qualified bidders. Thereafter, on 13.03.2020, the financial bid of the qualified bidders were opened where it was found that the appellant quoted -3.600% below the estimated rate while the respondent No. 5 had quoted -17.669%. Following the opening of the financial bid, LOA was issued in favour of the respondent No. 5 on 16.03.2020. The appellants, being aggrieved for not having been selected filed WP(C) No. 52/2020 on 18.03.2020 praying for a direction to the State respondents to disqualify the respondent No. 5 and to declare the appellants as L-1 and issue LOA in respect of the NIT dated 18.12.2019. Vide Order dated 24.03.2020, the learned Single Judge issued notice to the respondents with a further direction that the LOA dated 16.03.2020 shall be subject to the outcome of the writ petition. Thereafter, the appellant filed I.A(C) No. 35/2021 praying for impleadment of the other entities of Joint Venture as petitioners in WP(C) No. 249/2019 & WP(C) No. 3(K)/2020. However, on 28.04.2021, the appellants prayed for and were allowed to withdraw WP(C) No. 249/2019, WP(C) No. 3(K)/2020 and I.A(C) No. 35/2021 with liberty to file afresh. After such withdrawal, the appellants filed WP(C) No. 93/2021 praying for issuance of LOA in its favour in terms of the earlier NIT dated 13.09.2013 which was subsequently cancelled vide Order dated 16.12.2019. The appellants also filed WP(C) No. 94/2021 praying for a direction to quash the tender cancellation Corrigendum dated 16.12.2019 in respect of NIT dated 13.09.2019.

5. Subsequently, the writ petitions were heard and disposed of vide Judgment & Order dated 15.12.2021 by directing the State respondents to issue LOA in favour of the appellants within a period of 2 (two) weeks from the date of passing the order. Against the said Judgment & Order 15.

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