IN THE HIGH COURT OF KERALA AT ERNAKULAM
ANIL K. NARENDRAN, G. GIRISH, JJ.
Sumesh Kumar R, S/o P Ravindran Nair – Appellant
Versus
The State Of Kerala – Respondent
W.P(C)Nos.38290 and 38495 of 2023
Decided on : 19-01-2024
| Table of Content |
|---|
| 1. details of tender process and bids. (Para 1 , 2) |
| 2. contestation of time limits for bid remittance. (Para 3 , 4 , 5 , 6) |
| 3. affidavit details concerning payment remittances. (Para 7 , 8 , 9 , 10 , 12) |
| 4. analysis of tender conditions and payment rules. (Para 13 , 14 , 20 , 22) |
| 5. court's conclusion on non-compliance with bidding rules. (Para 15 , 16 , 28) |
| 6. judgment reaffirming procedural requirements in bidding. (Para 23 , 25 , 39) |
JUDGMENT :
Anil K. Narendran, J.
The issue raised in these writ petitions relates to the process pursuant to a notification dated 07.11.2023 issued by the 3rd respondent-Executive Officer, Sabarimala, regarding open tender for certain Kuthaka items in Sabarimala Devaswom, during Mandala-Makaravilakku festival season of 1199 ME (2023-24), for the period from 11.11.2023 to 31.10.2024. The petitioner participated in the open tender conducted on 14.11.2023, for Kuthaka items 5 and 31 in Ext.P1 list of Kuthaka items. The document marked as Ext.P1 is the list of Kuthaka items, which forms part of the tender notification and Ext.P2 is the general and special conditions, which forms part of that tender notification.
2. The petitioner is the second highest bidder in respect of Kuthaka item 5, namely, Gold/Silver offering stall near the Nadapanthal at Sabarimala Sannidhanam. He is also the second highest bidder in respect of Kuthaka item 31, two shop rooms at Malikappuram. The highest bidder in those Kuthaka items is one Jayadeep Sasidharan, the 5th respondent in W.P.(C)Nos.38290 of 2023 and 38495 of 2023. In W.P.(C)No.38290 of 2023, the petitioner is seeking relief in respect of Kuthaka item 5 and in W.P.(C)No.38495 of 2023, he is seeking relief in respect of Kuthaka item 31. The common reliefs sought for in the writ petitions are a writ of mandamus commanding the 2nd respondent-Travancore Devaswom Board, to confirm the petitioner as the highest bidder in respect of Kuthaka items 5 and 31, after offering him the very same time period offered to the 5th respondent for remitting the bid amount or in the alternative, a writ of mandamus commanding the 2nd respondent Board to re-tender Kuthaka items 5 and 31 in Ext.P1 list, within a time limit to be fixed by this Court. The case of the petitioner is that the remittance made by the 5th respondent towards the bid amount in Kuthaka items 5 and 31 was beyond the time limit specified in Ext.P2 general and special conditions, which forms part of the tender notification dated 07.11.2023. The 5th respondent, who did not have the required amount with him on 14.11.2023 or even within the extended time limit on 15.11.2023, was permitted to remit the bid amount in violation of clause 4 of the general and special conditions. In respect of Kuthaka item 5, the highest bid was Rs.40,25,000/-and that in respect of Kuthaka item 31, was Rs.40,21,200/-. As against the aforesaid amount, in the tender process held on 14.11.2023, the petitioner quoted Rs.40,00,000/- and Rs.39,00,000/- respectively, as stated in paragraph No.5 of the counter affidavit dated 28.11.2023 filed by respondents 2 to 4.
3. On 17.11.2023, when W.P.(C)No.38290 of 2023 came up for admission, the learned Standing Counsel for Travancore Devaswom Board submitted that as the tender process could be concluded only by 10.00 p.m. on 14.11.2023, the successful bidders were granted an extension of time till 12.00 noon on 15.11.2023, for remitting the bid amount. Necessary documents to substantiate that fact can be placed on record, by the next posting date.
4. By the order dated 17.11.2023 in W.P.(C)No.38290 of 2023, the Deputy Director, Kerala State Audit Department, Travancore Devaswom Audit was suo motu impleaded as the additional 6th respondent. The learned Senior Government Pleader took notice on admission for the 1st respondent and also for the additional 6th respondent and the learned Standing Counsel for Travancore Devaswom Board for respondents 2 to 4. Notice on admission by special messenger was ordere
Central Coalfields Limited and another v. SLL SML (Joint Venture Consortium) and others
Commissioner of Income Tax v. Ogale Glass Works Ltd. AIR 1954 SC 429
G.J. Fernandez v. State of Karnataka (1990) 2 SCC 488
Laxmi Civil Engineering Service Pvt. Ltd. v. Kerala Water Authority 2023 (5) KHC 560
Poddar Steel Corporation v. Ganesh Engineering Works (1991) 3 SCC 273
Ramana Dayaram Shetty v. International Airport Authority of India (1979) 3 SCC 489
Raunaq International Ltd. V. IBR Constructions Ltd. (1999) 1 SCC 492
TATA Motors Ltd. v. Brihan Mumbai Electric Supply and Transport Undertaking (BEST) (2022) 5 SCC 362
Alteration of circumstances does not lead to frustration of contract and that doctrine of frustration has to be applied narrowly.
Point of Law : Grant of judicial relief at instance of a party that does not fulfil requisite criteria is something which could be termed as misplaced.
The authorities have the discretion to re-tender in case of a single bid and to condone minor defects in bids to protect public interest.
A party cannot be penalised disproportionately for the lapses of the other party.
Tender authorities must adhere to statutory criteria and act transparently; courts will not interfere unless clear evidence of arbitrariness or malafide conduct is presented.
The court affirmed that tender processes must adhere to clear criteria to avoid favoritism and arbitrary decisions, emphasizing the necessity of fairness and transparency in public contracts.
A supplier's contractual obligations are enforceable; failure to comply can lead to liability for resultant losses
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