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2020 Supreme(Jhk) 324
IN THE HIGH COURT OF JHARKHAND AT RANCHI
RAJESH SHANKAR, J.
M/s The Base Enterprises its Proprietor Shri Amit Kumar Pandey – Appellant
Versus
Heavy Engineering Corporation Limited – Respondent
W.P. (C) No. 4445 of 2019
Decided on : 25-02-2020
Advocate Appeared:
For the Appellant :Mr. Indrajit Sinha, Mr. Vipul Poddar, Advocate
For the Respondents:Mr. Anil Kumar Sinha, Mr. Mukesh Kumar, Advocate
Headnote:
(A) Government Contract - Tender - Termination of Letter of Intent issued in favour of petitioner for alleged breach of terms and conditions - Petitioner appears to have committed breach of terms and conditions of contract - If conduct of successful bidder is such which does not inspire confidence of authority, it is entitled to decline from entering into any legal relationship with successful bidder - If conditions stipulated in LoI are not fulfilled and if conduct of bidder is found otherwise so as not to inspire confidence, authority is entitled to withdraw LoI - Every bidder is supposed to comply terms and conditions of bid documents - Writ petition dismissed. (Paras 12, 15, 17, 27, 30 and 33)
(B) Constitution of India - Article 226 - By way of judicial review, High Court under Article 226 of Constitution of India is not expected to perform as a court of appeal while examining an administrative decision and to record a finding as to whether any such decision in given context could not have been taken - Writ Court while making judicial review, should ordinarily refrain from examining details of terms of contract which has been entered by State/its functionary - Writ Court has inherent limitation in making roving enquiry - However, writ court can certainly examine as to whether decision making process of State/ its functionary is unreasonable, irrational, arbitrary and violative of Article 14. (Para 8)
JUDGMENT :
The present writ petition has been filed for quashing the letter as contained in Ref. No. TA/REV/RB/2017/2019-338 dated 16.08.2019 (Annexure-14 to the writ petition) issued under the signature of the respondent no. 3-the Deputy General Manager, T.A. Division, Heavy Engineering Corporation Ltd. (HEC) whereby the Letter of Intent No. HQ/BDC & Disp/NRB-NIT/2016-187 dated 31.10.2016 issued in favour of the petitioner, has been terminated with immediate effect and it has also been directed to vacate the premises and to clear the pending dues as well as to complete the formalities relating to handing over the premises to the respondent-HEC on or before 14.09.2019. Further prayer has been made for issuance of direction upon the respondents to execute a formal agreement/contract of lease for a period of ten years commencing from 31.10.2016 with respect to Rajendra Bhawan, Sector-II, HEC.
2. The factual background of the case as stated in the writ petition is that a Notice Inviting Tender (NIT) was floated by the respondent-HEC on 18.04.2016 inviting applications from intended bidders for leasing out nine buildings of diverse nature with associated land in HEC Township. The petitioner participated in the said tender and furnished the bid for three non-residential buildings and it was declared technically qualified. However, after opening the price bids, the petitioner was not allotted any non-residential building on the ground that the price quoted by it did not match the reserve price set by the respondents. Thereafter, the respondents floated another tender for leasing out six non-residential buildings with associated land in the HEC Township vide Tender No. HQ/BDC & Disp./NRB-NIT/2016/06 dated 05.09.2016. The petitioner again participated in the second tender process and quoted the bid only for one non-residential building i.e. Rajendra Bhawan, Sector-II, HEC with its associated land. The technical bid of the petitioner was found responsive and thereafter when the financial bid was open, the petitioner was declared successful with respect to its bid for Rajendra Bhawan, Sector-II, HEC along with its associated land. The Senior D.G.M.(BCD & Disposal) issued Letter of Intent (LoI) in favour of the petitioner vide letter as contained in Reference No. HQ/BDC & Disp/NRB-NIT/2016-187 dated 31.10.2016 for a period of 10 years which was renewable for another 10 years on the decisions and terms and conditions of the management of the respondents-HEC. The respondents also handed over the possession of the said building in favour of the petitioner vide letter dated 20.03.2017. Pursuant to the tender notice and its terms and conditions, the petitioner deposited a total amount of Rs. 2,21,21,000/- and service tax of Rs.33,18,150/- on 30.11.2016. It also paid a sum of Rs.3,48,405/- on 30.03.2017 towards annual rent which was accepted by the respondents without any objection. The petitioner further paid the required rent for the financial year 2018-19 and 2019-2020 to the respondents and the same was also accepted without any demur. The petitioner invested Rs.4.7 crores during the period between 29.11.2016 to 20.08.2019. The respondent no. 2 issued a notice vide letter dated 20.10.2017 indicating inter alia that some irregularities might have been done towards the allotment of the said building i.e. Rajendra Bhawan, Sector-II, HEC, in favour of the petitioner and the petitioner was advised not to continue with any construction/activity in the said building/complex as the investigation of matter was going on at appropriate level. The petitioner approached the then C.M.D. of H.E.C. who conveyed the petitioner that it may resume the renovation/construction work after one week. The respondent no. 2 however issued a notice vide letter dated 08.11.2017 mentioning inter alia that the construction/renovation work of the said building/complex was still going in spite of the direction to discontinue any construction/renovation activities and thus t
