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2021 Supreme(Online)(KER) 32119

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR.JUSTICE C.T.RAVIKUMAR &

THE HONOURABLE MR.JUSTICE MURALI PURUSHOTHAMAN MONDAY, THE 31ST DAY OF MAY 2021 / 10TH JYAISHTA, 1943 DBP NO. 7 OF 2021 IN THE MATTER OF TRAVANCORE DEVASWOM BOARD-TDB REPORT NO.02/2021 IN PETITION NO.12/2020-IN THE MATTER OF APPROVAL OF CONTRACT SANCTION FOR THE SUPPLY OF “STAINLESS STEEL KANIKKA VANCHIES OF VARIOUS TYPES UNDER TRAVANCORE DEVASWOM BOARD TEMPLES”-SUO MOTU PROCEEDINGS INITIATED PETITIONERS:

0 THE TRAVANCORE DEVASWOM BOARD REPRESENTED BY ITS EXECUTIVE ENGINEER, ESTATE DIVISION, SCCHR LIBRARY BUILDING, THIRUVANANTHAPURAM - 695 001 BY ADV SHRI.G.BIJU,SC,TRAVANCORE DEVASWOM BOARD RESPONDENT:

0 THE DEPUTY DIRECTOR, LOCAL FUND AUDIT THIRUVANANTHAPURAM SR. GOVERNMENT PLEADER SRI.T.K ANANDAKRISHNAN SRI.P.RAMACHANDRAN, AMICUS CURIAE THIS DEVASWOM BOARD PETITION HAVING COME UP FOR ADMISSION ON 7.04.2021, THE COURT ON 31.05.2021 DELIVERED THE FOLLOWING:

Advocates:
['SHRI G BIJU', 'SC', 'TRAVANCORE DEVASWOM BOARD', 'GOVERNMENT PLEADER']

ORDER

Murali Purushothaman, J.

DBP No.7/2021 is registered on the basis of TDB Report No.2 of 2021 in Petition No.12 of 2020 filed by the learned Ombudsman for Travancore and Cochin Devaswom Boards. Petition No.12/2020 is filed seeking sanction for award of contract work of “Stainless Steel Kanikka Vanchies of various types under the Travancore Devaswom Board Temples” in favour of M/s.TJSV Steel Fabrication and Galvanising (India) Ltd.

2. It is seen from the petition that pursuant to a conference held on 03.02.2020 at TDB Headquarters, the Deputy Devaswom Commissioner informed that there is shortage of Kanikka Vanchies in various devaswoms and directed to urgently submit estimate for supplying Kanikka Vanchies. Accordingly, the Executive Engineer, Estate Division of TDB, by Annexure A, submitted an estimate amounting to Rs.46,38,745/- based on DSR 2016 for supplying Kanikka Vanchies of various sizes viz., (i) 30x30x30cm (150 Nos.), (ii) 60x45x60cm (50 Nos.) and 60x60x75cm (30 Nos.)

3. The Chief Engineer (CE) on receipt of Annexure A estimate from the Executive Engineer checked and modified the estimate and closed for Rs.46,80,000/- varying the quantity as follows:-

(i) 30x30x30 cms (200 Nos.)

(ii)60x45x60cms (50 Nos.)

(iii)60x60x75 cms (35 Nos.)

In Annexure B, the split up of the estimate is as follows:-

Rs.(i)168390 +(ii)1090268+(iii)1036770 + 139062 (towards unforseen works if any + 7,11,000/- (GST @ 18% + Rs.19,000/-

(towards advertisement charges).

4. The TDB accorded administrative sanction for the said work at the estimate cost of Rs.46,80,000/- based on DSR 2016 as recommended by the Chief Engineer.

5. Though there were no participants for the tender floated on

24.03.2020, in the second tender invited on 28.05.2020, there were seven participants. The participants and the amounts quoted by them are given as hereunder:-

Sl.No. Participants Amount (Rs.)
1 M/s.Hindustan Furnaces Ltd. 55,18,800/-
2 Indian Centrifuge Engineering Solution Pvt.Ltd 37,40,000/-
3 TJSV Steel Fabrication and Galvanizing (India) 29,15,440/-
4 V.P.Sanikumar 36,90,000/-
5 Impact Metals 37,21,290/-
6 Pheonix Heavy Engineering Industries 37,94,000/-
7 PRM Metal Craft 51,24,370/-

As seen from the above chart, M/s.TJSV Steel Fabrications had quoted the lowest rate amounting to Rs.29,15,440/-. By Annexure -D addressed to the Chief Engineer, the Executive Engineer sought for contract sanction in favour of M/s.TJSV Steel Fabrication stating that though attempted to negotiate, M/s.TJSV Steel Fabrications informed their inability to reduce their quoted rate.

6. The Chief Engineer by Annexure E addressed to the Board recommending the contract. The Board, after verifying the sample and suggesting certain modifications without change in the quoted rate, accorded contract sanction in favour of M/s.TJSV, as per Annexure G. Accordingly, petition was filed by the Board before the learned Ombudsman to grant contract sanction for the work of “Stainless Steel Kanikka Vanchies of various types under the Travancore Devaswom Board Temples” sanctioned by the Board for Rs.29,15,440/- in favour of M/s TJSV Steel Fabrication and Galvanizing (India) Ltd.

7. When the matter came up for consideration before this Court on 4.03.2021, going through the estimated cost and the bid amount, we found that there is considerable difference between them. In fact, the said aspect was noted and highlighted by the learned Ombudsman in TDB Report No.2/2021. Accordingly, we directed the Chief Engineer of the TDB to explain the basis for preparation of the estimated amount and also as to how such a considerable difference had occurred.

8. Accordingly, the Chief Engineer has filed an affidavit dated 17.3.2021 explaining the basis for preparation of the estimated amount and the reason for the difference in the estimated cost and bid amount in the contract. The relevant portion of the affidavit of the CE is extracted below:-

“4.It is submitted that administrative sanctio

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