Eligible bidders must produce relevant documentation to claim price preferences; failure to do so negates any claim for tender advantages.

JUDGMENT

Dated this the 20th day of October, 2022 The petitioner, a B Class Contractor, participated in the tender floated by the Kerala Water Authority for the work 'JJM DER 2020 21 THOLICODE GP Pipeline extensions and providing house connections in THOLICODE GRAMA PANCHAYAT Phase 11 A3 2150 FHTCS from ongoing Scheme PART 2'. The bids were opened on 01.07.2022 and the petitioner was declared the lowest among the 8 bidders. The tender summary report was published on 08.07.2022. The petitioner’s grievance is that, in spite of being the lowest bidder, the tender is not finalised by issuing the selection notice.

2. Learned Counsel for the petitioner submitted that on enquiry, the petitioner was informed that the fourth respondent, a Labour Contract Co-operative Society (LCCS), is the third lowest bidder and the third respondent being entitled for price preference, issuance of selection notice is kept on hold, awaiting production of relevant documents by the fourth respondent. It is contended that the fourth respondent does not have sufficient experience and is not entitled for price preference or privilege in tenders. In this regard, reference is made to Ext.P4 Government order, as per which LCCS, which are ready to register under Clause 1900 of PWD Manual like other PWD contractors, without claiming any benefit as per the Government Orders referred therein, are entitled to apply for tender following the same procedure as other PWD contractors. It is also stated that such LCCS will not be entitled for privileges provided by the Co-operative Department and 10%

price preference.

3. Learned Counsel for the fourth respondent contended that the Government of Kerala has granted certain privileges and concessions to Labour Contract Co-operative Societies in award of tenders. The initial Government order was issued on 28.10.1974. Thereafter, by Ext.R4(a) Government order dated 13.11.1997, the procedure for participation of LCCS and the price preference of 10% above the lowest tender was stipulated. It is contended that Ext.P4 Government order, relied on the by the petitioner, has no relevance insofar as price preference is concerned. Moreover, Ext.P4 has been superseded by Ext.P6 Government order dated 29.07.2022, wherein it is clearly stipulated that the eligible price preference shall be applicable for LCCS which are having relevant valid Government Orders for availing such price preference. The employer having correctly understood the position, had directed the fourth respondent to produce documents evidencing its eligibility for price preference.

As such, no interference is warranted.

4. Learned Standing Counsel for the Water Authority submitted that the tender process was kept on hold in the light of Ext.P6 Government Order which mandates grant of price preference to LCCS. On being informed about Ext.P6, the fourth respondent was asked to produce orders and documents evidencing its entitlement for price preference. The fourth respondent has not produced the required documents, including the order of the Joint Registrar of Co-operative Societies. As a result, the tender process is in stalemate.

5. As contended by the Counsel for the fourth respondent, the LCCS were granted price preference by the Government. The position was altered by Ext.P4 Government order, the relevant portion of which reads as under;

“.If LCCS are ready to register under clause 1900 of PWD Manual like other PWD contractors will Set claiming any benefits for ICCS as per the Govt. Orders of Co-operative Department read above. these Contractors shall apply for tender in the same procedure as other PWD Contractors and privileges available for LCCS provided by Co-operative Department and 10 price preference will not be applicable for these LCCS.

.If LCCS requires the privileges given by the Co-operative Department's Govt. Orders read above, they can apply for the PWD works even without registration in Contractor's Portal and the tendering authority should verify the qua