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VIPIN SANGHI, R.C.KHULBE
Unicon Builders and Contractors – Appellant
Versus
State of Uttarakhand – Respondent
JUDGMENT :
Sri Vipin Sanghi, J.
The petitioner has preferred these two writ petitions in similar circumstances.
2. The petitioner participated in the tendering process in relation to two works, namely UDRP/PWD/07/RD/118 and UDRP/PWD/07/RD/119. Writ Petition (M/S) No. 3063 of 2018 relates to the first of these works, whereas Writ Petition (M/S) No. 3067 relates to the second work aforesaid.
3. For the purpose of ease, we are treating Writ Petition (M/S) No.3067 of 2018 as the lead matter, and taking note of the facts and circumstances in relation to the said case. The facts of the other case are also similar.
4. The estimated cost of the work in relation to the Package No. UDRP/PWD/07/RD/119 was Rs.1528.53 lacs. The bid submitted by the petitioner in response to the said Package was of Rs. 15,24,91,267.15. Thus, the bid of the petitioner was only about four lacs less than the estimated cost. The respondents issued the Letter of Acceptance on 23.09.2017, wherein the respondents, inter alia, required the petitioner to submit an Additional Security Performance Security to the tune of Rs.2,88,69,664.72 “for unbalanced bids in terms of ITB Clause 40”. The Communication, however, did not state
The court emphasized the importance of the respondents providing a clear basis for their claims and considering the petitioner's submissions in compliance with the previous court direction.
The main legal point established in the judgment is the illegality of requiring additional performance security for unbalanced bids in public procurement prior to the amendment, emphasizing the need ....
Court upheld the demand for additional performance security per contractual terms to prevent front loading, emphasizing the need for safeguarding project completion.
Conditions for additional performance security prior to the enactment of Rule 75A are illegal unless supported by statutory provisions.
A contractor must fulfill tender conditions to enter into a valid binding contract and cannot claim undue benefit in the absence of a work order or contract agreement.
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