2018 Supreme(UK) 314
IN THE HIGH COURT OF UTTARAKHAND
K.M. JOSEPH, SHARAD KUMAR SHARMA, JJ.
KOTHARI ASSOCIATES - Appellant
Versus
STATE OF UTTARAKHAND AND OTHERS - Respondent
Special Appeal No. 190 of 2018; Stay Vacation Application No. 9355 of 2018
Decided on : 25-07-2018
Advocate Appeared:
Rakesh Thapliyal, Adv., Ranjan Ghildiyal, Adv.
Headnote:
Bid – Rejection of – It is settled law that, by virtue of being the lowest tenderer, no legal right accrues to the appellant to demand that the State may enter into a contract with him.
(Paras 10 to 15)
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K. M. JOSEPH, J.
1. Appellant is the writ petitioner.
2. By e-tender notice dated 22.11.2017, the Superintending Engineer called for tenders in respect of construction of residential and nonresidential buildings. Including the appellant, there were six contractors, who participated. Out of them, only two were found to be technically responsive, including the appellant. Accordingly, the financial bid of the appellant was opened on 23.02.2018. Appellant was found to be L-1. However, the respondents decided to go in for a re-tender after cancelling the earlier tender. This occasioned the filing of the writ petition, wherein the following reliefs were sought:
"I. Issue a writ, order or direction in the nature of certiorari for quashing the impugned e-tender corrigendum dated 15.03.2018 and the fresh e-tender notice dated 20.03.2018 (Annexure Nos. 5 & 6 to the writ petition).
II. Issue a writ, order or direction in the nature of mandamus commanding the respondents to issue the work order to the petitioner keeping in view of the fact that the petitioner was declared as L-1 pursuant to the tender notice dated 22.11.2017."
3. The learned Single Judge did not find it fit to interfere in the matter and dismissed the writ petition vide judgment dated 02.04.2018. Hence, the appeal.
4. We have heard Mr. Rakesh Thapliyal, learned counsel for the appellant and Mr. Ranjan Ghildiyal, learned Brief Holder appearing for the respondents / State.
5. In the writ petition, no counter affidavit was called and it was decided at the admission stage. In the appeal, however, an affidavit has been filed in support of the prayer for vacating the interim order passed by the appellate court. Therein, it is inter alia stated as follows:
"6. That it is relevant to point out here that the GST (Goods and Sales Tax) was introduced / made applicable w.e.f. 1.7.2017 in all over India, therefore, the department was not aware about the rate of GST while floating the tender, therefore, the department mentioned a clause in Standard Bidding Documents (SBD) stating therein that the contractors would submit their bids without adding GST. Meaning thereby the contractors submitted their bids without including GST. Not only this in this regard the contractors were required to submit affidavit / undertaking that the rates given by them are not included GST, therefore the petitioners submitted the affidavit stating therein that the rates quoted by him is not included GST. For kind perusal of this Hon'ble Court a copy of affidavit given by the contractors is being filed herewith and marked as Annexure No. CA-1 to this affidavit.
7. That in regard to GST, Engineer-in-Chief & Head of Department, Public Works Department, Dehradun vide circular dated 17.2.2018 clarified that for the work of construction of buildings, the calculation would be done as per DSR including GST. In other words in the Departmental Technical sanction rates the GST would also be included. Apart from above for the work of building construction, a meeting was held on 14.2.2018 in the chairmanship of Secretary, Planning, Uttarakhand, Dehradun, in which the decision was taken that along with DSR 2016 the cost index, which was issued on 1.4.2016 would be applicable till further orders. The net effect of the aforesaid order was that the cost index was remained only 1.96%. For kind perusal of this Hon'ble Court a copy of order dated 17.2.2018 and 14.2.2018 are being filed herewith and marked as Annexure No. 2 & 3 to this affidavit.
8. That for disposal of the work in regard to the aforesaid tender, after calculating the relevant things, the technical sanction was given on 5.3.2018 by the Chief Engineer, Tehri Region, Public Works Department, Tehri. As per technical sanction the rate of department were 3,96,39371.41, whereas the bid of the petitioner after adding 12% GST comes as 40,96,16,32.69, which is much higher to the departmental rates. It is relevant to point out here that the petitioner in his tender quoted