Importance of raising objections immediately after the issuance of a work order and the lack of merit in relying on the terms of an agreement after the completion of the period of work.

JUDGMENT :

The case is taken up through Video Conferencing.

At the request of learned counsel for the petitioner, the defects pointed out by the office are ignored.

The present writ petition has been filed for quashing the letter as contained in letter No. 1340 dated 10.06.2021 (Annexure-4 to the writ petition) issued by the respondent No.2 whereby the work order/agreement for comprehensive maintenance contract (CMC) of installed/available freeze, deep freeze, split AC, window AC, centralized AC of modular OT in various departments of MGM Medical College & Hospital, Jamshedpur has been terminated. Further prayer has been made for quashing e-tender notice dated 22.06.2021 (Annexure-5 to the writ petition), published in the daily newspaper “Dainik Bhaskar” dated 24.06.2021, issued by the respondent No.2 whereby a fresh tender has been invited from the agency/company for the said work. The petitioner has also prayed for issuance of direction upon the respondents to allow it to do the said work as per the terms of e-tender notice dated 18.02.2020 and the agreement dated 05.06.2020.

Learned counsel for the petitioner while assailing the letter as contained in letter No. 1340 dated 10.06.2021 issued by the respondent No.2, submits that unilateral termination of the agreement as well as the work order issued to the petitioner by the respondent No.2 is wholly arbitrary and illegal. Moreover, the respondent No.2 cannot invite a fresh e-tender for the work in question during the subsistence of the agreement executed between the petitioner and the respondent No.2. It is further submitted that the petitioner and the respondent No.2 had executed the agreement on 05.06.2020 for the said work, a copy of which has been annexed as Annexure-2 to the writ petition. Paragraph 2 of the said agreement clearly indicates that the period of agreement was for two years. It has also been stipulated in paragraph 3 of the said agreement that if the work of the agency is found satisfactory, the same would be extended for further period of one year. Since the period of the said agreement is still subsisting, issuance of the impugned letter dated 10.06.2021 by the respondent No.2 cancelling the work order as well as the agreement is illegal and arbitrary. Moreover, the other conditions as mentioned in e-tender notice dated 18.02.2020 also stipulate that the same will be effective for a period of two years from the date of its approval which may be extended with the consent of both the parties for further period, if the work of the agency is found satisfactory.

Mr. Mohan Dubey, learned A.C to A.G appearing on behalf of the State-respondent, while countering the argument of learned counsel for the petitioner, submits that the period of two years as mentioned in the other terms and conditions of e-tender notice dated 18.02.2020 is the maximum period for which the said tender was said to be effective. Though paragraphs 2 & 3 of the agreement dated 05.06.2020 executed between the parties are not happily worded, yet on careful perusal of paragraph 2 of the same, it would be evident that the second party i.e. the petitioner had to execute the said work for the period of two years at the rate fixed in the said tender. Moreover, the same has to be read with the work order issued to the petitioner on the next date of execution of the agreement i.e. 06.06.2020 (Annexure-3 to the writ petition) which has properly explained about the maximum period of the work allotted to the petitioner. It has clearly been mentioned in the said work order that the same will be for a period of one year i.e. from 07.06.2020 to 06.06.2021 which can be extended for further period of one year, if the work of the agency (the petitioner) is found satisfactory. Though there is some ambiguity in paragraphs 2 & 3 of the agreement dated 05.06.2020, yet the work order dated 06.06.2020 is quite clear that the period of the work awarded to the petitioner will be for one year which can be extended for furt