IMPORTANT POINT
Compliance with work order conditions and directions is essential for upholding a procurement process. Failure to adhere to the conditions may lead to the forfeiture of earnest money and cancellation of the procurement process.

ORDER :

1. The instant writ petition has been preferred under Articles 226 and 227 of the Constitution of India with the following prayers:-

“(a) By issuance of a suitable writ, direction or order, the Hon’ble Court may kindly be pleased to quash, cancel and/or set aside the office order dated 18.08.2023 (Annexure-8) and further be pleased to quash, cancel and/or set aside the fresh NIT No.05/2023 (Annexure-9)

(b) By issuance of a suitable writ, direction or order, the Hon’ble Court may kindly be pleased to direct the Respondents to provide for the layout plan at the earliest so that work may be initiated.

(c) Or in the alternative by issuance of a suitable writ, direction or order, the Hon’ble Court may kindly be pleased to direct the Respondents to return the earnest money along with the interest and it is further prayed under this prayer that the Respondents may further be directed to pay compensation to the Petitioner firm for causing harassment to the Petitioner.

(d) The Hon’ble Court may be pleased to pass any other appropriate order or directions as may be deemed fit and proper in the facts and circumstances of the case, in favour of the Petitioners co. and in the interest of justice and further to set a precedent so that such illegal actions are not repeated by Respondents in future.”

2. The petitioner firm was registered under the category of AA class contractor for civil works vide order dated 30.07.2015 (Annexure-1) and subsequently vide order dated 15.03.2022 (Annexure-2), registration of the petitioner firm was renewed. An NIT bearing No.08/2022-23 was issued on behalf of the Administrator of Rajasthan State Agricultural Marketing Board for work of Construction of Government Agriculture College Building (Academic Block) Kherwara District, Udaipur from AA & A class enlisted contractors. The petitioner firm participated in the tender process and after having being found successful in the said process, the procuring entity awarded a work order-cum-contract dated 11.05.2023 (Annexure-5) to the petitioner firm. The petitioner firm also deposited a sum of Rs.17,76,140/- in term of Clause 6 of the NIT as earnest money.

3. After being awarded the work order-cum-contract dated 11.05.2023, the petitioner firm vide letters/communications dated 31.05.2023, 07.06.2023, 14.06.2023, 04.08.2023 and 17.08.2023 requested the procuring entity to provide for layout plan with reference to the plot area, reference pillar, setting out plan for main building, etc., as mentioned under the work order-cum-contract, but to no avail and thus, being aggrieved of the same, the petitioner firm furnished a representation dated 07.08.2023 (Annexure-7) to the Executive Engineer and again requested to provide for layout plan.

4. Thereafter, vide its office order dated 18.08.2023 (Annexure-8), the respondent No.2-Executive Engineer, Rajasthan State Agriculture Marketing Board, Udaipur, cancelled the work order-cum-contract dated 11.05.2023 awarded to the petitioner firm and an amount of Rs.17,76,140/- paid by the petitioner firm as an earnest money, was forfeited. The reason provided by the procuring entity to cancel the work order-cum-contract was failure on part of the petitioner firm to start the work in timely manner. Thereafter, the procuring entity on the very same day i.e. 18.08.2023, issued a fresh tender bearing NIT No.05/2023-24 and thus, being aggrieved thereof, the petitioner-firm has preferred the present writ petition.

5. Learned counsel for the petitioner submits that :-

(a) Not even a prima facie attempt was made at the hands of the procuring authority to appreciate the fact that the petitioner firm was continuously requesting the respondents to provide for the layout plan as per the work order-cum-contract.

(b) The action of the procuring authority in cancelling the work order and forfeiting the earnest money of Rs.17,76,140/-deposited by the petitioner firm and that too without providing any opportunity of hearing to the petitioner firm, is g