GARG ACRYLICS LTD AND ANOTHER Vs. STATE OF PUNJAB AND OTHERS
LAWS(P&H)-2016-9-199
HIGH COURT OF PUNJAB AND HARYANA
Decided on September 16,2016

Garg Acrylics Ltd And Another Appellant
VERSUS
STATE OF PUNJAB AND OTHERS Respondents

JUDGEMENT

- (1.) In this writ petition filed under Articles 226/227 of the Constitution of India, the petitioners have prayed for issuance of a writ in the nature of mandamus directing respondents No.1 and 2 to take a decision in terms of the decision taken by the Council of Ministers in the Cabinet Meeting dated 25.2.2016 (Annexure P-4) and to direct respondent No.4 to strictly process the tenders through E-tendering process and as per the guidelines (Annexure P-10) approved by the Government of Punjab. Further, a writ of certiorari has been sought for quashing the communication dated 6.7.2016 issued by respondent No.3.
(2.) Put shortly, the facts necessary for adjudication of the instant petition as narrated therein may be noticed. The Council of Ministers, Punjab took a decision on 20.5.2015 to invite tenders for the construction and development of Grain Storage Silo Complex on Design, Build, Finance, Operate and Transfer (DEFOT) for storage of foodgrain on public private partnership. On 20.8.2015, respondent No.3-Punjab State Warehousing Corporation invited tenders, Annexure P-1, for the aforesaid purpose for seven locations, i.e. Machiwara, Banga, Ajnala, Nurmahal, Sirhind, Patran and Jalalabad. In pursuance thereto, petitioner No.1 applied for the tender. The technical bids were opened on 8.9.2015 whereas the financial bids were opened on 16.9.2015. Petitioner No.1 was declared L-1 for two locations, i.e. Nurmahal and Jalalabad and was declared L-2 for three locations, namely, Ajnala, Banga and Patran. The petitioners deposited the total earnest money of Rs. 88,50,000/- for the aforesaid five locations. Vide communication dated 8.1.2016 (Annexure P-2), petitioner No.1 was asked to renew/extend its price bids for the said five locations who vide communication dated 9.1.2016 (Annexure P-3) confirmed that its bids shall be valid for another 60 days. The Council of Ministers took a decision dated 25.2.2016 (Annexure P-4) that in future, the tenders for the works would be invited by respondent No.2 through respondent No.4 and regarding the tenders already invited, it was decided that the concerned Ministers would sit together and take a joint decision. As per news item, Annexure P-5, a dispute had arisen between the two concerned Ministers. On the basis of the complaints and representations made by various contractors, a detailed report dated 1.3.2016 (Annexure P-6) was prepared by respondent No.3 and was submitted to the State Government. Vide communication dated 5.7.2016 (Annexure P-7), the petitioner extended its bid for another three months and informed respondent No.3 that the bids are valid till October, 2016. However, respondent No.3 vide letter dated 6.7.2016 (Annexure P-8) cancelled the tender process. On 18.7.2016, petitioner No.1 received information under the Right to Information Act, 2005 that respondent No.3 acted in violation of the decision taken by the Council of Ministers and had cancelled the tender process without there being any direction from the concerned Ministers. Accordingly, petitioner No.1 submitted a representation dated 25.7.2016 (Annexure P-9) against the cancellation of the tender, but to no effect. As per the approved guidelines (Annexure P- 10) for E-tendering, any tender involving work order more than Rs. 5 lacs has to be invited only through E-tendering process. Respondent No.4 issued fresh tender process, Annexure P-11 and the petitioner applied for the same vide communication dated 3.8.2016 (Annexure P-12) along with draft of Rs. 50,000/-. Hence, the present writ petition.
(3.) Learned counsel for the petitioner submitted that respondent No.3 had cancelled the tender process vide communication dated 6.7.2016 (Annexure P-8) in violation of the decision taken by the Council of Ministers on 25.2.2016 (Annexure P-4). It was further submitted that the cancellation of the tender process suffered from arbitrariness and malafides.;


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