IN THE HIGH COURT OF ORISSA, CUTTACK
VINEET SARAN AND B.R. SARANGI, JJ.
Pramod Kumar Sahu - Petitioner
Versus
State of Orissa and Others - Opp. Parties
W.P.(C) 9847, 9849 of 2016
Decided On : 07-09-2016
Tender - Construction Work - Resolution dated 11.10.1977, OPWD Manual, Price Preference - [FACT OF THE CASE] Both writ petitions involve the same questions of fact and law related to the tender process for construction works. The petitioner, an 'A' Class contractor, was declared as the 1st lowest bidder for certain construction works. However, the State-opposite parties subsequently cancelled the petitioner's selection and awarded the work to another contractor belonging to the SC category, citing the resolution dated 11.10.1977 and the OPWD Manual. [FINDING OF THE COURT] The court found that the cancellation of the petitioner's selection without following due procedure of law and minimum compliance of principles of natural justice violated Article 14 of the Constitution. [ISSUES] The issues revolved around the applicability of the resolution dated 11.10.1977 and the OPWD Manual in granting price preference to SC/ST contractors, the authority's right to rectify a mistake in the selection process, and the principles of equity in tender processes. [RATIO DECIDENDI] The court held that the authority's action was unjust and directed for a fresh tender process to be conducted. [FINAL DECISION] Both writ petitions were allowed, and the authority was directed to conduct a fresh tender process for the works in question.
JUDGMENT :
B.R. SARANGI, J.
Both the above mentioned writ petitions involve same questions of fact and law excepting the work for which bids were invited and, as such, they are heard together and disposed of by this common judgment.
2. For the sake of convenience and better appreciation, W.P.(C) No. 9849 of 2016 is considered as a lead case and facts of the said case have been referred to.
The Project Administrator, Integrated Tribal Development Agency (ITDA), Baliguda-opposite party no.3 floated a tender vide Bid Identification No. PA(ITDA)-BLGD-3/15-16 Letter No. 485/ITDA, dated 19.02.2016 inviting bids from the eligible contractors for the purpose of execution of different works in the district of Kandhamal. The tender notice itself stipulated terms and conditions with regard to eligibility for offering bids, where it is stated that SC & ST contractors have to submit an affidavit that they have not availed such benefit for more than two works during the current financial year for the purpose of availing price preference. The petitioner, an ‘A’ Class contractor, belonging to general category offered his bid in respect of the work “Construction of Ashram School (Academic block & Staff Qtr. ‘B’ Type) for PVTG Area at Rangaparu under Tamudibandha Block”. On consideration of the bids submitted by the petitioner as well as others, the State-opposite parties found the petitioner as L-1 tenderer in respect of the aforesaid work with 5.8 % less. Accordingly, the State-opposite parties vide letter no. 906/ITDA dated 08.04.2016 intimated the petitioner that he being the 1st lowest bidder has to attend the office of opposite party no.3 to execute agreement on his quoted rate with required ISD and original documents within seven days of receipt of the letter and he was also asked to submit his work programme in respect of the project in the form of an affidavit in non-judicial stamp paper of required amount during the time of agreement. The said letter was received by the petitioner on 18.04.2016. In response to the aforesaid letter dated 08.04.2016, the petitioner complied with the entire requirements including the signing of the agreement from his side and also submitted the work programme vide his letter dated 22.04.2016 and requested the State-opposite parties to provide him the copy of the agreement, work order, estimate and lay out for the purpose of commencing execution of the work. Such letter having been acknowledged by opposite party no.4, opposite party no.3 vide letter dated 23.04.2016 intimated that due to some unavoidable circumstances the agreement was to be executed after few days and the next date for signing of agreement will be intimated to him. As per the terms and conditions of the tender call notice, the agreement ought to have been executed within three days following the selection of the petitioner. As the work order was not issued in favour of the petitioner, he approached this Court by filing W.P.(C) No.9127 of 2016 praying therein for direction to the State opposite parties to issue work order in his favour. While the matter stood thus,, opposite party no.3 vide its letter No. 1223/ITDA dated 24.05.2016, which was received by the petitioner on 27.05.2016, intimated that the selection of the petitioner as L-1 bidder, as communicated vide letter dated 08.04.2016, has been cancelled, and that as per the resolution dated 11.10.1977 opposite party no.6 is entitled to price preference of 10% being S.C. contractor and the OPWD Manual published in the website giving 5% price preference has not yet been finalized and it is only a draft proposal, as clarified by the Under Secretary to the Government, Works Department in its letter dated 06.05.2016. Being aggrieved by such action of opposite party no.3, the petitioner has approached.
3. In so far as W.P.(C) No.9847 of 2016 is concerned, the same has been filed by the selfsame petitioner in respect of the work “Construction of Ashram School (Hostel Block) for work PVTG area at
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