NILKAMAL, BITO STORAGE SYSTEMS PVT LTD Vs. BIHAR MEDICAL SERVICES AND INFRASTRUCTURE CORPORATION LIMITED; MANAGING DIRECTOR, BIHAR MEDICAL SERVICES AND INFRASTRUCTURE CORPORATION LIMITED; DEPUTY GENERAL MANAGER (SUPPLY CHAIN), BIHAR MEDICAL SERVICES AND INFRASTRUCTURE CORPORATION LIMITED; GENERAL

JUDGEMENT

(1.) Heard learned counsel for the petitioner and Sri Lalit Kishore learned senior counsel for the respondents.

(2.) The present writ petition has been filed for the following reliefs

(3.) According to the petitioner, an Indo-German joint venture, the short facts of the case are that it participated in the tender notice issued in the month of November, 2012 for supply, installation and commissioning of Pallet Racks for Bihar Medical Services and Infrastructure Corporation Limited (for short, "BMSICL") warehouses in Bihar and the earnest money deposit of Rs. 6,00,000/- was also furnished by way of bank guarantee vide B.G. No. 120386IBGB00261 dated 30.11.2012 drawn on IDBI Bank. The price bid was opened on 11.01.2013 and out of five participants, the petitioner was found to be the lowest bidder. It appears that on being asked by the Tender Committee whether the petitioner could actually supply the materials, the petitioner in its letter dated 11.01.2013 (reiterated subsequently in an identical letter dated 14.01.2013) stated that a mistake had been committed in quoting the prices, as transportation and installation costs had erroneously not been included. It was therefore stated that if the order were to be placed, the petitioner was not in a position to execute the same and would incur huge losses. The petitioner therefore requested the respondents to take a sympathetic view by permitting rectification of the mistake. By letter dated 04.02.2013 in the nature of show cause, BMSICL informed the petitioner that its financial bid had been rejected by the Tender Committee on the basis of the petitioner's letter dated 11.01.2013 and recommended forfeiture of the petitioner's EMD in form of bank guarantee of Rs. 6,00,000/-. An opportunity was granted to file a representation against the proposed action. In reply to the letter dated 04.02.2013, the petitioner requested for return of the EMD on the ground that the work order had not been awarded to it. By the impugned order dated 29.05.2013, BMSICL then invoked the bank guarantee in view of the petitioner's breach of condition no. 1(a) as the petitioner had withdrawn its bid during the period of bid validity. The IDBI Bank was required to transfer the amount of Rs. 6,00,000/- to its bank account accordingly.