M/S L.K. & SONS Vs. STATE OF MANIPUR
LAWS(MANIP)-2013-11-7
HIGH COURT OF MANIPUR
Decided on November 15,2013

M/S L.K. And Sons Appellant
VERSUS
STATE OF MANIPUR Respondents

JUDGEMENT

- (1.)THE petitioner is a firm registered under the Indian Partnership Act, 1932 and is engaged in execution of different types of contracts. In this writ application, the petitioner challenges the legality of the order passed in Annexure -A/6 dated 21.10.2013 directing for furnishing additional Bank Guarantee of Rs.25.00 crorers (Rupees twentyfive crores) for the purpose of execution of Agreement.
(2.)THE respondents published a notice on 7.8.2013 inviting bids of eligible parties for appointment as Management Agency of taxation posts along the National Highways passing through the State of Manipur at Hengbung, National High Way No.2 in the District of Senapati and at Jiribam, National Highway No.37 in the Imphal East District.
The petitioner who fulfills the requirement of eligibility criteria submitted its bid on 21.8.2013 along with all necessary documents. As per the terms of the tender, it also submitted a Bank Guarantee of Rs.50.00 lakhs (Rupees fifty lakhs). The tenders were in two parts - one for technical and the other for financial. The technical and financial bids were opened on 11.9.2013 and 12.9.2013. Out of the four bidders, three qualified including the petitioner. Thereafter, the financial bids submitted by the said three bidders including the petitioner were opened and the bids submitted by the petitioner was found to be the highest being Rs.4050.00 crores as assured amount, i.e. the value of taxable goods and consignments. After opening of the technical and financial bids, the petitioner having been found to be the highest bidder, he was selected to execute the contract but in Annexure -A/6, it was directed to furnish additional Bank Guarantee of Rs.25.00 crores for the purpose of execution of the Agreement. Challenging the said order, this writ application has been filed.

(3.)MR .H.S. Paonam, learned Sr.counsel appearing for the petitioner challenges the order in Annexure -A/6 on the ground that as per the terms of the tender documents, the petitioner is required to have a minimum of Rs.5.00 crores turn over per annum and it is also required to furnish Bank Guarantee for a sum of Rs.50.00 lakhs as the assured value. There is no such condition giving liberty to the respondents to direct for furnishing of any further amount as additional Bank Guarantee for the purpose of entering into an Agreement. Therefore, in the absence of such a provision in the tender documents, demand for furnishing additional Bank Guarantee of Rs.25.00 crores is unreasonable and arbitrary.


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