- (1.) A tender notice has been issued by the Executive Engineer in the Rural Engineering Department of Aligarh division inviting tenders for certain work of a civil nature. The petitioner is aggrieved by the condition imposed in the tender notice insofar as it directs that 5% of the contract amount should be furnished as earnest money at the time of submitting tender forms. The submission of the petitioner is that under the U.P. Financial Hand Book Volume-V Part-I Schedule XIX, Para 308 (18), the earnest money required to be deposited is subject to a maximum of 2% of the total cost of the work tendered. Hence, it has been submitted that it was not open to the third respondent to fix or demand earnest money at a rate higher than 2% of the cost of the work which has been tendered.
(2.) The relevant conditions which are contained in the Financial Hand Book are as follows: "17. All tenders must be submitted on the prescribed form which can be obtained on application and payment where this is required. No tender should, as a rule, be considered unless it is accompanied by earnest money which should be as follows: JUDGEMENT_578_ADJ7_2014_1.html
(3.) Reliance has been placed by the petitioner on the judgement of a Division Bench of this Court in M/s. Jal Akash vs. State of U.P. & Ors.,2006 6 ALJ 22;