Timeliness in payment is essential in tender contracts; failure to comply justifies cancellation and awarding to the next bidder.

Amit Rawal, J.

The present intra court appeal is directed against the judgment of the learned Single Bench dated 16.02.2024, whereby the following reliefs have been sought for:

“1. To issue a writ of mandamus or any other appropriate writ, order or direction commanding the respondents to grant time up to 8.2.2024 for the petitioner for remitting the balance amount outstanding as per Exhibit-P2 notice.

2. To issue a writ of mandamus or any other appropriate writ, order or direction commanding the respondents to permit the petitioner to carry out the contract work covered by Exhibits-P1 & P2.

3. To issue a writ of mandamus or any other appropriate writ, order or direction commanding the respondents to stop all further proceedings to give the contract work to the 3rd respondent.

4. And to pass such other appropriate writs, orders or directions which this Hon’ble Court deems fit and proper in the facts and circumstances of the case so as to secure the ends of justice.”

Vide the judgment impugned, the tender of the 2^nd respondent, Exts.P11 and P12, has been quashed with a direction to the Secretary, Aluva Municipality to execute the contract with the party respondent. Consequently, a direction was issued to the 1^st respondent, Secretary, Department of LSGD to summon the entire records in connection with the tender proceedings leading to Ext.P1 and find out whether there was any malpractice or misconduct from any of the officers or office bearers of the Municipality, that is the appellant, and if found so, take an appropriate steps including criminal prosecution, untrammeled by the observations recorded therein.

2. Succinctly the facts in brief for adjudication of the controversy are enumerated herein:

The Municipality published an e-tender notification on 27.12.2023. On 17.01.2024, three(3) tenders were received and the Municipal Council approved the highest tender of Rs.1,16,08,174/- submitted by the 1^st respondent – Adhilsha. On 18.01.2024, Ext.P2 notice was issued to the respondent No.1 to remit an amount of Rs.1,48,58,472/- including GST and security on or before 29.01.2024. On 20.01.2024, Rs.16,08,174/- was credited by the 1^st respondent in the account of the Municipal Council. By 29.01.2024, only 16,08,174/- was received and no other amount was deposited. The Municipal Council, on 01.02.2024, considered the matter and decided to grant time upto 02.02.2024, failing which the permission so granted would be cancelled with a liberty to negotiate with next highest bidder. On 01.02.2024, 1^st respondent remitted an amount of Rs.35 lakhs, thus the total was Rs.51,08,174/-.

3. On 01.02.2024, a request was submitted by the 1^st respondent to the Municipal Chairman, Aluva, giving the reasons for the delay in remitting the balance amount on account of the trade fair and amusement park bid through e- tender in connection with the celebration of Aluva Shivarathri Festival, that there were certain complaints and cases against Sha's entertainment (ist respondent) and the Municipality. Moreover, certain mafias had been extending threats and therefore, there was some delay. Along with the aforementioned letter, an amount of Rs.50,00,000/- was stated to be remitted and the remaining amount was requested to be remitted on 05.02.2024, but, actually only an amount of Rs.35 lakhs had been remitted.

4. On 03.02.2024, the Steering Committee of the Municipal Council considered the matter at 10.00 am in the morning and decided to take up the matter at 3.00 pm to verify whether the cheques of Rs.40 lakhs and Rs.25 lakhs given by the 1^st respondent have been cleared and credited in the account of the Municipal Council. In the post lunch session of the meeting on the