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2014 Supreme(Ker) 32

High Court of Kerala
THE HONOURABLE MR. JUSTICE K.T. SANKARAN & THE HONOURABLE MR. JUSTICE M.L. JOSEPH FRANCIS, JJ.
M/s. Green Track Engineers & Construction represented by its Operation Manager, R. Pradeep
Versus
The Kerala Minerals & Metals Ltd. (A Government of Kerala Undertaking) represented by its Managing Director & Others
W.A. Nos. 1338 & 1354 of 2013 & W.P.(C) No. 21923 of 2013 M
Decided on: 15-01-2014

Advocates Appeared:
For the Appellant:Grashious Kuriakose, Sr. Advocate, George Mathews, Advocate.
For the Respondents:R1, K. Anand, Sr. Advocate, Mrs. Latha Krishnan, R2, S. Sharan, Advocates.

Headnote:Writ appeal - Tender Bid - Validity of - Award vitiated by unreasonableness,

       arbitrariness and malice hence should be set-aside. Intending tenders be given opportunity to participate in tender bid -

       FINDINGS

       Appeal allowed.

       

Judgment :

K.T. Sankaran, J.

1. The Kerala Minerals and Metals Ltd., (hereinafter referred to as the 'KMML'), which is a Government of Kerala Undertaking, invited sealed competitive tenders from experienced contractors for the work of excavation and transportation of mineral sand from Kovilthottam area of the company for a period of one year. Tender notice dated 21.2.2013 was published in two Malayalam dailies on 24.2.2013. The tender notice showed that tender forms could be had from the office of Dy.General Manager (MS) of KMML on any working day from 4.3.2013 to 14.3.2013. Duly filled up tender alongwith EMD of Rupees Two lakhs was to be submitted before 2 pm on 15.3.2013. The tender notice also provided that the Commercial part of the tender would be opened at 2.30 pm on 15.3.2013.

2. Three tenders were submitted. They were by (1) M/s.Deepthi Transport Services; (2) M/s.TVK Constructions; and (3) M/s.Green Track Engineers and Construction (hereinafter referred to as 'Deepthi', 'TVK' and 'Green Track' respectively). The commercial part of the tender was opened on 15.3.2013 and it was found that 'Deepthi' and 'TVK' could be considered as qualified. In respect of the tender submitted by 'Green Track', various discrepancies were noticed and therefore legal opinion was sought. On the basis of the legal opinion, the tender submitted by 'Green Track' was rejected.

3. 'Green Track' filed W.P.(C) No.9984 of 2013 for the issue of a writ of certiorari or any other appropriate writ, order or direction to quash the order of 'KMML' leading to the acceptance of the tender submitted by 'TVK' and to declare that the non-acceptance of the tender submitted by 'Green Track' was illegal, arbitrary and unjustifiable. There is also a prayer for the issue of a writ of mandamus directing 'KMML' to accept the tender submitted by 'Green Track'. It is stated in the Writ Petition filed by 'Green Track' that they submitted tender in the prescribed form along with the required earnest money deposit and solvency certificate. They quoted the rate of Rs.350/- per metric tonne, while 'TVK' quoted the rate of Rs.410/- per metric tonne and 'Deepthi' quoted Rs.413/- per metric tonne. On 15.3.2013, 'Green Track' was told by the officials of 'KMML' that the commercial bid of 'Green Track' was in order and the price bids would be opened on 3.4.2013. A representative of 'Green Track' was present before the first respondent when the price bids were opened. However, on that day, he was told that the tender submitted by 'Green Track' was rejected. 'Green Track' filed a representation dated 4.4.2013 before 'KMML' seeking to review its decision rejecting the tender. It is alleged in the Writ Petition that some of the top ranking officers of 'KMML' colluded with 'TVK' and acted in an arbitrary manner which is detrimental to the best interest of 'KMML' and the public. The rate quoted by 'Green Track' was the lowest and still the contract was awarded to 'TVK' who quoted a much higher amount of Rs.410/- per metric tonne.

4. W.P.(C) No.10095 of 2013 was filed by one Renjith Babu to quash the proceedings accepting the tender of 'TVK' and to issue a writ of mandamus commanding 'KMML' to invite a fresh tender for the work in question. There is also a prayer to issue a writ of mandamus commanding 'KMML' to consider Ext.P6 representation dated 5.4.2013 submitted by Renjith Babu.

5. In W.P.(C) No.10095 of 2013 filed by Renjith Babu, he alleged the following among other. The petitioner was very much interested in participating the tender. As per the tender notification, tender forms were to be issued from 4.3.2013 to 14.3.2013. The petitioner went to the office of 'KMML' to purchase tender form on 4.3.2013 itself. He frequently visited the office of 'KMML' to purchase a tender form and he was informed that the tender date will be extended. 'KMML' started issuing tender forms only on 11.3.2013. Renjith Babu, the petitioner, did not purchase the tender form since it was not possible for hi



































































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