Back
IN THE HIGH COURT OF JUDICATURE AT MADRAS
S.SOUNTHAR, J
Ram Taranga Solutions Private Limited – Appellant
Versus
NCL India Limited – Respondent
ORDER :
S.Sounthar, J.
The writ petition is filed challenging the order passed by the respondent dated 26.02.2024 blacklisting the petitioner from participating in the tender floated by the respondent and its subsidiaries for a period of two years and for further direction to the respondent to allow the petitioner and its associate companies to participate in the tenders floated by the respondent and its associates.
2. The petitioner is a company engaged in the business of renewal energy generation for the past 15 years and has experience in providing services to multiple Government entities and public sector undertakings. The respondent is a public sector enterprise engaged in the business of renewable energy Generation. The respondent issued a tender dated 04.05.2023 for setting up Wind Power Projects on Pan India basis with operation and maintenance for ten years. As per the tender notice issued by the respondent, the bid documents submitted by bidders shall be accompanied with a Bank Guarantee. As per the tender conditions, any bank guarantee submitted in physical form, must also be verified through the respondent's platform for Structured Financial Messaging System (herein after
The submission of a bogus Bank Guarantee by a bidder justifies a two-year ban under tender conditions, as the term 'certificate' includes documents.
An employer is liable for the fraudulent acts of its employees, justifying blacklisting under tender conditions for submission of forged documents.
The invocation of Bank Guarantees must be aligned with contractual terms; unauthorized invocation is deemed arbitrary.
Point of Law : Work tender/Contract - Blacklisting - when the financial loss is not caused, the doctrine of proportionality to blacklist the petitioner beyond the reasons shown in the show cause not....
The court affirmed that submitting false documents in tender processes justifies disqualification and forfeiture of bid security under the relevant tender clauses.
Disqualification from tender processes necessitates adherence to procedural fairness; blacklisting without notice is arbitrary and invalid.
Blacklisting as a penalty requires clear proof of intentional misconduct, and actions taken based on allegations alone may be deemed disproportionate and legally untenable.
A consortium member is jointly liable for the actions of its partners during bidding, and blacklisting imposes severe consequences proportional to misconduct, requiring strict adherence to principles....
An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers
Please visit our Training & Support
Center or Contact Us for assistance
Scan Me!
India’s Legal research and Law Firm App, Download now!
For Daily Legal Updates, Join us on :
Back to top
