2008 Supreme(J&K) 346
IN THE HIGH COURT OF JAMMU AND KASHMIR AT JAMMU
Manmohan Sarin,J.P. Singh, JJ.
Selvel Media Services Pvt. Ltd. - Appellant
Versus
State Of J&K & Ors. - Respondent
LPAOW No. 51/2008, CMP No. 60/2008
Decided On : 14 October, 2008
Advocate For Appellant: U.K. Jalali
Advocate For Appellant: Neha Bakshi
Advocate For Appellant: Parimoksh Sethi
Advocate For Respondent: Seema Sheikher
Advocate For Respondent: D.S. Thakur
Advocate For Respondent: S.S. Nanda
The court upheld the Corporation's discretion in awarding contracts and found that the decision was within the ambit of 'play in the joints' and in the public interest.
Headnote:
Advertisement Rights - Contract Award - Jammu Municipal Corporation Act, 2006, Section 33 - The court discussed the relevant facts and the terms of the Notice Inviting Tender (NIT) and the bids submitted by the parties. The court considered the appellant's claim of delayed bid submission due to a strike and the Corporation's decision to award the contract to an ineligible bidder. The court analyzed the legal principles related to bid conditions, waiver, and the discretion of the Corporation in awarding contracts. The court upheld the Corporation's decision as falling within the ambit of 'play in the joints' and in the public interest.
Fact of the Case:
The appellant challenged the award of advertising rights to respondent no. 7, M/s. Sai Advertising by the Jammu Municipal Corporation. The appellant claimed to be the highest bidder but their bid was received late due to a strike. The Corporation awarded the contract to respondent no. 7, who matched the bid amount of the appellant.
Finding of the Court:
The court found that the appellant's bid was ineligible due to delayed submission and the Corporation's decision to award the contract to an ineligible bidder was within its discretion and in the public interest.
Issues: The issues included the eligibility of the appellant's bid, the Corporation's discretion in awarding contracts, and the legality of awarding the contract to an ineligible bidder.
Ratio Decidendi: The court held that the bid conditions were not subject to waiver or relaxation, and the Corporation's decision fell within the ambit of 'play in the joints' and was in the public interest.
Final Decision: The appeal was dismissed.
1. Appellants, M/s. Selvel Media Services Pvt. Ltd., have filed this appeal assailing the judgment dated 25.4.2008 of the learned Single Judge dismissing OWP no. 289/2008 and CMP no. 445/2008.
2. The learned Single Judge by the impugned judgment had dismissed the writ petition filed by the appellant challenging the award of advertising rights to respondent no. 7, M/s. Sai Advertising. The appellant claimed that it was the highest bidder and its bid had been opened and taken into consideration. In these circumstances, it was not permissible for the Jammu Municipal Corporation to have awarded the contract to M/s. Sai Advertising, respondent no. 7 by asking the latter to match the bid price offered by the appellant. The Learned Single Judge dismissed the writ petition holding that the appellants bid was not in conformity with the terms of Notice Inviting Tender (NIT). Hence, the appellant was not eligible for being awarded the contract.
3. Before we deal with the specific submissions made before us by the learned counsel for the appellant, it would be appropriate to notice the relevant facts which are not in dispute.
i) Appellant claims to be a leading player in the field of Advertising with sixty years experience, having impeccable credentials. The Jammu Municipal Corporation by a public notice published the gist of NIT inviting offers for the "advertising rights" of the extended area of the JMC viz, Rail Head Complex, Trikuta Nagar, Narwal Channi Himat, Kunjwani, Fly Over Sher-e-Kashmir Bridge, Bantalab, Udeywala, Muthi etc. in the Newspaper. As per the terms of the gist of NIT published, bids addressed to the Commissioner, Jammu Municipal Corporation were required to reach the office on 10.3.2008 up to 4.00 PM along with CDR/FDR for Rs. 5.00 lac drawn at any nationalized Bank. Other details of the NIT were available on the Website.
ii) One of the terms relevant for the purposes of the present appeal is clause (1) of the terms and conditions of Tender Document which reads as under:-
"1. Offers should be submitted on letter pad of firm(sample bid form enclosed as Annexure `B) and addressed to "Commissioner Jammu Municipal Corporation, town Hall, Jammu 180001" and should reach office through Registered/Speed post on or before 10/03/08 up to 4 P. M. Couriers/By hand offers shall not be accepted.
Top front of sealed envelope should be superscribed with words.
Offer for Advertising Rights; Due date 10/03/08"
iii) In response to the NIT, three parties submitted their bids, namely, M/s Sai Advertising, who had bid a sum of Rs. 54.00 lakh, M/s Rather Oriental Advertisement Agency who bid a sum of Rs. 52.00 Lac. The third bid of the appellant, M/s Selvel Media Services Pvt. Ltd., who bid Rs.91,11,111/-. The bid from M/s Sai Advertising and M/s. Rather Oriental Advertisement Agency were received within time, i. e., by 4 P. M.on 10.3.2008, while the bid of appellant was received through Speed Post on 1lth March, 2008 at 10.30 A.M.
iv) It is the appellants case that it had sent the bid earlier on 10th March 2008, but the same could not be received at the Corporation on account of strike by workers of the Corporation. Support is sought to be derived by reference to press clippings reporting the strike at the relevant time. The appellant, thereupon sent the bid accompanied with the draft as required by speed post, which reached the Corporation on 11th March 2008.
v) The appellants bid, it appears from the record produced before us, to which we shall advert a little later, was opened on 11th of March, 2008. In the event, in the decision making process as revealed from the notings made by the Contract Committee comprising Joint Commissioner, Chief Accounts Officer and the Revenue Officer, the Commissioner ordered that M/s. Sai Advertising, i. e., respondent no.7, be given an offer to accept and deposit the bid amount of Rs.91,11,111/- (Rupees ninety one Lakh, eleven thousand, one hundred and eleven), i. e., equivalent to the hi