JAMMU & KASHMIR HIGH COURT
Muzaffar Hussain Attar, J.
Nayak Infrastructure Pvt.Ltd. -Appellant
Versus
State of J&K & Ors. -Resopndent
OWP No. 1668/2012, CMA No. 2374/2012 c/w CMA No. 1964/2012 in OWP No. 1169/2012, CMA No. 1622/2012, CMA No. 1965/2012 in OWP No. 1170/2012, CMA No. 1623/2012
Decided On : 01-06-2013
Tender Rejection - Construction of Road - Clause 4.7 of SBD - NIT Clause 10 - Section 3 of SBD
Fact of the Case:
The petitioner's bid for the construction of a road under PMGSY was rejected due to incorrect information about ongoing litigation with the government. The petitioner challenged the rejection in a writ petition.
Finding of the Court:
The court found that the petitioner provided misleading information in the affidavit, which led to the rejection of the bid. The court held that the rejection was justified based on the non-compliance with the prescribed format for providing information on ongoing litigation.
Issues: Misleading information in bid documents, compliance with prescribed format for providing litigation information, validity of bid rejection
Ratio Decidendi: The court emphasized the importance of providing accurate information in bid documents and upheld the rejection based on non-compliance with the prescribed format for disclosing ongoing litigation.
Final Decision: The writ petition was dismissed, and the rejection of the petitioner's bid was upheld.
2. Fresh notice inviting e-Tenders dated 5th September, 2012 was issued by the Chief Engineer PMGSY (JKRRDA), Jammu on behalf of the Governor of J&K State whereunder fresh e-Tenders on %age Above/Excess (+) OR %age Below/Less(-) (i.e. on Percentage-Rate Basis) were invited from approved and eligible contractors registered with J&K State Government, CPWD, Railways or equivalent and other State Governments. The Tender documents were to be submitted up to 2 PM on 19th September, 2012.
3. The Competent Authority rejected the technical bid of the petitioner on the ground that 'bidder has provided wrong information in the affidavit about the litigation as is already in litigation with this department. Hence, non-responsive.'
4. Petitioner feeling aggrieved of the said decision of the respondents has challenged the same in this writ petition.
5. On notice, respondents have filed objections/reply affidavit.
6. Mr. Gupta, learned Senior counsel while referring to Clause 4.7 of the "Standard Bidding Documents" (for short SBD) submitted that the reasons given for rejecting the bid of the petitioner does not synchronize sub clause (ii) of Clause 4.7 of the SBD.
7. Learned counsel submitted that illustrations given in the said Clause have reference about "record of poor performance". Learned counsel submitted that the question of poor performance would arise only when the petitioner would have been earlier allotted some work by the respondents and then for any of the cause mentioned in sub-clause (ii) of Clause 4.7 of the SBD, it could be stated that his performance has been poor. Learned counsel submitted that the 'litigation history' is one of the reasons for recording poor performance. Learned counsel submitted that admittedly, the petitioner has never been allotted any work by the official respondents, as such; having 'litigation history' is rendered inconsequential because it has reference only to "record of poor performance". Learned counsel laid emphasis on this expression "record of poor performance" and submitted that in the facts of this case, sub-clause (ii) of Clause 4.7 of the SBD would not be attracted. Learned counsel laid great emphasis on the expression "such as" appearing in sub-clause (ii) of Clause 4.7 of the SBD and submitted that all the grounds men#31;tioned therein are relatable to the "record of poor performance" only. Learned counsel submitted that the reasons given for rejecting the bid document of the petitioner does not come within the purview of sub-clause (ii) of Clause 4.7 of the SBD. Learned counsel further submitted that whatever information was required to be given in terms of NIT and SBD which include Section 3 thereof, has been properly given. Learned counsel also submitted that affidavit sworn and enclosed with the Tender document was filed in format prescribed by the official respon#31;dents. Learned counsel further submitted that the work for construction of road has been allotted to the private respondents at exorbitant rates. The petitioner had quoted almost Rs. 1.00 Crore (Rupees one Crore) lesser rate than quoted by the private respondents. Learned counsel submitted that the official respondents being custodian of the State Revenue could not award contract to private respondents which has resulted in huge loss to the State exchequer. Learned counsel in support of his contention referred to and relied upon "AIR 1978 Supreme Court 851", "(2003) 10 SCC 78", "(2002)1 SCC 367" and "AIR 1999 SC 666". Learned coun
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