AFR HIGH COURT OF CHHATTISGARH, BILASPUR Order Reserved on: 28/01/2021 Order Delivered on : 19/02/2021 WPC No. 2390 of 2020 • Raipur Construction Pvt. Ltd. A Company Duly Incorporated Under The Provisions Of The Companies Act, 1956 And Having Its Office At 24 Ground Floor, Babla Complex, G.E. Road, Raipur Chhattisgarh ---- Petitioner Versus
1. State of Chhattisgarh Through Secretary, Urban Administration And Development Department, Mahanadi Bhawan, Mantralaya, Naya Raipur, District Raipur Chhattisgarh
2. Bilaspur Smart City Ltd., Through Its Managing Director, 3rd Floor, Vikas Bhawan, Nehru Chowk, Bilaspur, District Bilaspur Chhattisgarh
3. Manager, Bilaspur Smart City Ltd., 3rd Floor, Vikas Bhawan, Nehru Chowk, Bilaspur, District Bilaspur Chhattisgarh
4. M/s Prakash Asphaltings And Toll Highways (India) Ltd. And Ganpati Infrastructure (M/s Path-Gi (JV), Mall Road, Mhow, Indore, Madhya Pradesh.
5. M/s Dineshchandra R. Agrawal Infracon Pvt. Ltd., 401, The Grand Mall, S.M.
Road, Opposite State Bank Zonal Office, Ambawadi, Ahmedabad Gujarat ---- Respondents For Petitioner : Shri Manoj Paranjpe, Shri K. Rohan & Shri Bharat Sharma, Advocates.
For Respondent/State : Shri Chandresh Shrivastava, Deputy Advocate General For Respondent No. 2 : Shri Prafull N Bharat, Shri Mateen Siddiqui, and Shri and 3 Faisal Akhtar, Advocates For Respondent No. 4 : Shri Rajeev Shrivastava, Shri Ankit Singhal and Shri Om Kukreja, Advocates.
WPC No. 2396 of 2020 • Raipur Construction Pvt. Ltd. A Company Duly Incorporated Under The Provisions Of The Companies Act, 1956 And Having Its Office At 24 Ground Floor, Babla Complex, G.E. Road, Raipur Chhattisgarh ---- Petitioner Versus
1. State of Chhattisgarh Through Secretary, Urban Administration And Development Department, Mahanadi Bhawan, Mantralaya, Naya Raipur, District Raipur Chhattisgarh
2. Bilaspur Smart City Ltd., Through Its Managing Director, 3rd Floor, Vikas Bhawan, Nehru Chowk, Bilaspur, District Bilaspur Chhattisgarh.
3. Manager, Bilaspur Smart City Ltd., 3rd Floor, Vikas Bhawan, Nehru Chowk, Bilaspur, District Bilaspur Chhattisgarh
4. M/s Prakash Asphaltings And Toll Highways (India) Ltd. And Ganpati Infrastructure (M/s Path-Gi (JV), Mall Road, Mhow, Indore, Madhya Pradesh
5. M/s Dineshchandra R. Agrawal Infracon Pvt. Ltd., 401, The Grand Mall, S.M.
Road, Opposite State Bank Zonal Office, Ambawadi, Ahmedabad Gujarat ---- Respondents For Petitioner : Shri Manoj Paranjpe, Shri K. Rohan & Bharat Sharma, Advocates.
For Respondent/State : Shri Chandresh Shrivastava, Deputy Advocate General For Respondent No. 2 : Shri Prafull N Bharat, Advocate, Shri Mateen Siddiqui, and 3 and Shri Faisal Akhtar, Advocates.
For Respondent No. 4 : Shri Rajeev Shrivastava, Shri Ankit Singhal and Shri Om Kukreja, Advocates. WPC No. 2860 of 2020 • M/s Prakash Asphaltings And Toll Highways (India) Ltd., a Company incorporated and registered under the provisions of the Companies Act 1956, Having Its Registered Office at 76, Mall Road, Mhow, District Indore, Madhya Pradesh, through its authorized signatory Shri Mayank Agrawal.
---- Petitioner Versus
1. Bilaspur Smart City Ltd. Through Its Managing Director, 3rd Floor, Pingle Bhawan, Nehru Chowk, Bilaspur District Bilaspur Chhattisgarh
2. The Manager Bilaspur Smart City Ltd. 3rd Floor, Pingle Bhawan, Nehru Chowk, Bilaspur, District Bilaspur, Chhattisgarh.
---- Respondents For Petitioner : Shri Rajeev Shrivastava, Shri Ankit Singhal and Shri Om Kukreja, Advocates.
For Respondents : Shri Prafull N Bharat, Advocate, Shri Mateen Siddiqui, Shri Faisal Akhtar, Advocates.
WPC No. 2872 of 2020 • M/s Prakash Asphaltings and Toll Highways (India) Ltd. A Company Incorporated And Registered Under The Provisions Of The Companies Act, 1956, having its Registered Office at 76, Mall Road, Mhow, District Indore, Madhya Pradesh ---- Petitioner Versus
1. Bilaspur Smart City Ltd. Through Its Managind Director, 3rd Floor, Pingle Bhawan, Nehru Chowk, Bilaspur, District Bilaspur Chhattisgarh.
2. The Manager Bilaspur Smart City Ltd., 3rd Floor, Pingle Bhawan, Nehru Chowk , Bilaspur , District Bilaspur , Chhattisgarh.
---- Respondents For Petitioner : Shri Rajeev Shrivastava, Shri Ankit Singhal and Shri Om Kukreja, Advocates.
For Respondents : Shri Prafull N Bharat, Advocate, Shri Mateen Siddiqui, Shri Faisal Akhtar, Advocates.
WPC No. 3150 of 2020 • Raipur Construction Pvt. Ltd. a Company Duly incorporated under the provisions of the Companies Act, 1956 And Having Its Office At 24 Ground Floor, Babla Complex, G.E. Road, Raipur, Chhattisgarh.
---- Petitioner Versus
1. State of Chhattisgarh Through Secretary, Urban Administration And Development Department, Mahanadi Bhawan, Mantralaya, Naya Raipur, District Raipur, Chhattisgarh
2. Bilaspur Smart City Ltd., Through Its Managing Director, 3rd Floor, Vikas Bhawan, Nehru Chowk, Bilaspur, District Bilaspur, Chhattisgarh
3. Manager Bilaspur Smart City Ltd., 3rd Floor, Vikas Bhawan, Nehru Chowk, Bilaspur, District Bilaspur, Chhattisgarh ---- Respondents For Petitioner : Shri Manoj Paranjpe, Shri K. Rohan & Shri Bharat Sharma Advocates.
For Respondent/State : Shri Chandresh Shrivastava, Deputy Advocate General For Respondent No. 2 : Shri Prafull N Bharat, Advocate, Shri Mateen Siddiqui, and 3 and Shri Faisal Akhtar.
WPC No. 3151 of 2020 • Raipur Construction Pvt. Ltd. A Company duly incorporated under the provisions of the Companies Act, 1956 and having its Office at 24 Ground Floor, Babla Complex , G.E. Road , Raipur , Chhattisgarh.
---- Petitioner Versus
1. State of Chhattisgarh Through Secretary, Urban Administration And Development Department, Mahanadi Bhawan, Mantralaya, Naya Raipur , District Raipur Chhattisgarh.
2. Bilaspur Smart City Ltd. Through Its Managing Director , 3rd Floor, Vikas Bhawan, Nehru Chowk, Bilaspur , District Bilaspur Chhattisgarh.
3. Manager Bilaspur Smart City Ltd., 3rd Floor, Vikas Bhawan, Nehru Chowk, Bilaspur , District Bilaspur Chhattisgarh.
---- Respondents For Petitioner : Shri Manoj Paranjpe, Shri K. Rohan & Bharat Sharma, Advocates.
For Respondent/State : Shri Chandresh Shrivastava, Deputy Advocate General For Respondent No. 2 : Shri Prafull N Bharat, Advocate, Shri Mateen Siddiqui, and 3 and Shri Faisal Akhtar.
WPC No. 3188 of 2020 • M/s Prakash Asphaltings And Toll Highways (India) Ltd. A Company Incorporated And Rregistered Under The Provisions Of The Companies Act., 1956, Having Its Registered Office At 76, Mall Road, Mhow, District- Indore, Madhya Pradesh, Through Its Authorized Signatory Shri Mayank Agrawal ---- Petitioner Versus
1. Bilaspur Smart City Ltd. through its Managing Director, 3rd Floor, Pingle Bhawan, Nehru Chowk, Bilaspur, District- Bilaspur, Chhattisgarh.
2. The Manager Bilaspur Smart City Ltd., 3rd Floor, Pingle Bhawan, Nehru Chowki, Bilaspur, District- Bilaspur, Chhattisgarh
3. P.K. Panchaity S/o Late Dr. U.K. Panchaity Aged About 58 Years Manager, Bilaspur Smart City Limited, Bilaspur, Chhattisgarh.
4. Dena Bank Through Its Branch Manager, Address South Tukoganj, District-
Indore, Madhya Pradesh ---- Respondents For Petitioner : Shri Rajeev Shrivastava, Shri Ankit Singhal and Shri Om Kukreja, Advocates.
For Respondents No. 1 & 2 : Shri Prafull N Bharat, Shri Mateen Siddiqui, and Shri Faisal Akhtar, Advocates.
Hon'ble Shri P.R. Ramachandra Menon, Chief Justice Hon'ble Shri Parth Prateem Sahu, Judge
C A V Order
Per P.R. Ramachandra Menon, Chief Justice
1. All these writ petitions are connected together by a common thread of the same texture. The subject matter relates to the tender floated by the Respondent-Bilaspur Smart City Limited. The challenge raised is against cancellation of the Second tender (after cancelling the First tender) and in respect of the subsequent/Third tender proceedings, besides the instance of blacklisting the parties concerned and other incidental aspects.
2. The main points that arise for consideration are:
(a) Whether the repeated cancellation of the tender floated by the Respondent-Bilaspur Smart City Limited is with intent to extend undue favours to anybody of choice of the Respondents?
(b) Whether the blacklisting of the Tenderer ordered by the Respondent-Bilaspur Smart City Limited without issuing any show cause notice is correct or sustainable in law?
(c) Whether the disqualification of the Petitioner-Company in WPC No.
2390/2020 and WPC No. 2396/2020 {M/s. Raipur Construction Pvt.
Ltd.} in the Second round of tender is correct or justified?
(d) Whether the disqualification of the Petitioner in WPC No. 2860/2020 and WPC No. 2872/2020 {M/s. Prakash Asphaltings & Toll Highways (India) Ltd.} in the Second round of tender after declaring them as already qualified and placing them at L1, based on some complaint as to the alleged suppression of the work in hand - to assess the bid capacity, is in order?
(e) Whether blacklisting of the Petitioner in WPC No. 3150/2020 and WPC No. 3151/2020 (same Petitioner Company in WPC No. 2390/2020 and WPC No. 2396/2020) as per order dated 11.11.2020 and the subsequent proceedings dated 24.11.2020 informing that the physical bid of the said Petitioner cannot be opened in the Third round of tender in view of the blacklisting ordered on 11.11.2020 and the further order dated 25.11.2020 rejecting the bid submitted in respect of the Third tender, is correct and justified?
(f) Whether the 'decision making process' pursued by the Respondent-
Bilaspur Smart City Limited is transparent and sustainable in law; both with regard to the question of 'disqualification' and the 'blacklisting' of the parties concerned?
(g) Is the version of the Petitioners in WPC No. 3150/2020, WPC No. 3151/2020 (same petitioner in WPC No. 2390 and WPC No. 2396/2020) that the agreement stated as executed between the said Petitioner and the Raipur Smart City Ltd. on 05.08.2020 (with reference to the existing work in hand produced by the Respondent/Bilaspur Smart City Ltd. alongwith the covering memo) is forged/concocted, or acceptable to be acted upon with reference to the relief sought for?
3. We heard Shri Manoj Paranjpe, Shri K. Rohan and Shri Bharat Sharma, the learned counsel for the Petitioner-Raipur Construction Pvt. Ltd. in WPC No. 2390/2020, 2396/2020, 3150/2020 and WPC No. 3151/2020, Shri Rajeev Shrivastava, Shri Ankit Singhal and Shri Om Kukreja for the Petitioner-M/s. Prakash Asphaltings & Toll Highways (India) Ltd. in WPC No. 2872/2020, 2860/2020 and 3188/2020, besides Shri Chandresh Shrivastava, the learned Deputy Advocate General for the State, Shri Prafull N. Bharat, Shri Mateen Siddiqui and Shri Faisal Akhtar, Advocates for the Respondent-
Bilaspur Smart City Limited.
4. The sequence of events starts from the day when the Respondent-Bilaspur Smart City Ltd. issued a Tender notification dated 09.06.2020 inviting bids for construction of bituminous road and drain works from Arpa River Indira Setu to Shanichari Rapta (Left Side). A similar tender was floated in respect of similar construction for the same stretch on the 'Right side' as well. The Petitioner-Raipur Construction Pvt. Ltd. contends that though they had participated, they were wrongly declared as ineligible vide order dated 25.07.2020. However, the said tender came to be cancelled by the Respondent-Bilaspur Smart City Ltd. on 25.07.2020 who issued a fresh tender for the work on the same day. The Petitioner-Raipur Construction Pvt. Ltd