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SANJAY KUMAR MEDHI
Rana Construction and Engineers Pvt. Ltd. – Appellant
Versus
Union of India – Respondent
JUDGMENT :
SANJAY KUMAR MEDHI, J.
1. The subject matter of these four petitions is similar which pertains to a demand for deposit of Additional Performance Security in respect of various works entrusted to the petitioner. It is the case of the petitioner that such demand, apart from unreasonable and arbitrary is a violation of an Office Memorandum dated 12.11.2020. Since the issue is common to all these four writ petitions, those were heard together and are disposed of by this common judgment and order.
2. To address the issue, it is necessary to put on record the facts of the case in brief.
3. The Chief Engineer, Public Works Department had published a Notice Inviting Tender dated 08.04.2022 calling for tenders for constructions of 155 nos. of roads under the PMGSY. The present writ petitions pertain to four out of the aforesaid 155 numbers of works in which the petitioner was found to be the eligible bidder. It is the case of the petitioner that after issuance of the Letter of Acceptance in its favour, he was asked to furnish Performance Security and also Additional Performance Security. The demand for Additional Performance Security was because of the reason that the petitioner had
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 ....
Court upheld the demand for additional performance security per contractual terms to prevent front loading, emphasizing the need for safeguarding project completion.
Rule 232 deals with general principles for award of grants-in-aid for centrally sponsored schemes.
Conditions for additional performance security prior to the enactment of Rule 75A are illegal unless supported by statutory provisions.
Additional performance guarantee unenforceable in item-wise tenders without published item-wise estimated rates.
Government decisions related to tenders must adhere to established guidelines, ensuring fairness, justice, and reasonableness.
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 ....
(1) Constitutional courts must defer appreciation of tender documents by employer unless there is mala fide or perversity in understanding or appreciation.(2) Tendering authority cannot be expected t....
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