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NAFR

HIGH COURT OF CHHATTISGARH, BILASPUR

Order reserved on 24/2/2021

Order delivered on 04/03/2021

WPC No. 2376 of 2020

• M/s. Raj Industries, through its Proprietor Rajesh Gupta, S/o

Shri R.I. Gupta, aged about 52 years, New Sarkanda,

Bilaspur (CG)

---- Petitioner

Versus

1. South East Central Railway General Manager, South East

Central Railway, Bilaspur (CG).

2. Senior Divisional Electrical Engineer (G), South East Central

Railway, Bilaspur (CG)

3. Principal Chief Electrical Engineer, South East Central

Railway, Bilaspur (CG)

---- Respondents

For Petitioner

:

Mr. Anup Mazumdar, Advocate

For Respondents

:

Mr. R.S. Patel, Mr. MalayJain & Mr.

Palash Agrawal, Advocates.

Hon'ble Shri PR Ramachandra Menon,CJ

Hon'ble Shri Parth Prateem Sahu, J

CAV Order

Per Parth Prateem Sahu, J

1. Petitioner has filed this petition challenging cancellation of

Tender No.O.T.P.-19-20-23 by respondents with following

reliefs:-

“10.1. That the Records pertaining to the tender

invitation and submitted documents by petitioners

may be called for kind per usual of this honourable

court.

10.2. That the respondent authorities may be

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directed to quash decision/order regarding the

cancellation of tender and direct the respondents to

allot the tender no. tender no.O.T.P.-19-20-23 to the

petitioner firm.

10.3. That any other relief which this Hon'ble court

may deem fit and just in the facts and

circumstances of the case.”

2. Facts necessary for disposal of this petition are that on

17.5.2020 the respondents floated Tender Notification

No.OTP 19-20-23 for the work of “Provision of Extension

/Modification of control building at Bilaspur/SECR for new

East Rail orridor project of CERL & Chhattisgarh East West

Rail corridor project of CEWRL”. The petitioner participated in

the tender proceedings along with six other bidders. Along

with tender document, the petitioner deposited earnest money

on 16-17/05/2020. Upon opening of bids submitted by the

tenderers, bid of one SNB Electrical, Janjgir Champa has

been found to be lowest one, whereas bid of the petitioner

was found to be second lowest. Upon examination of the

documents submitted by the lowest bidder, it was found that

lowest bidder did not fulfil requisite eligibility criteria laid down

in the tender document, as such bid of lowest bidder has

been rejected. As a result, petitioner, who is second lowest

bidder and qualifies all the requisite eligibility criteria as

prescribed in the tender document, became entitled for award

of contract. However, for the reasons best known to the

respondent authorities, instead of awarding contract to the

petitioner, the entire tender proceedings have been cancelled.

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This made the petitioner to approach this Court by preferring

this petition pleading therein that as per tender conditions and

the Indian Railways Standard General Conditions of Contract,

2019 (for short ‘Conditions of 2019’), if for any reason, the L1

is found ineligible to enter into agreement, then work is to be

awarded to L2 contractor/bidder. Respondent authorities

cancelled the entire tender proceedings and this fact came to

the knowledge of petitioner only when earnest money and

security deposit were remitted in petitioner’s bank account on

10.7.2020. Petitioner submitted an application for not

cancelling the tender proceedings, which was not replied by

respondent authorities. The sole Proprietor of petitioner firm

has obtained ‘A-Class’ Electrical License as per requirement

and both the sole proprietors of the petitioner firm fulfil the

requisites. In the earlier contract work awarded by the

respondent Railways, the entire amount of bills has not been

paid even after completion of work on the ground that there is

a dispute pending before the High Court with regard to the

status and constitution of the petitioner firm as to whether it is

a partnership firm or a proprietorship