HOTMIX PLANT OWNERS ASSOCIATION Vs. STATE OF PUNJAB AND OTHERS
LAWS(P&H)-2016-5-515
HIGH COURT OF PUNJAB AND HARYANA
Decided on May 17,2016

Hotmix Plant Owners Association Appellant
VERSUS
STATE OF PUNJAB AND OTHERS Respondents

JUDGEMENT

- (1.) The petitioner seeks a writ declaring the time-limit for completion of the contract entered into between the parties to be invalid. At the hearing, an order was sought directing the respondents to constitute a committee for stipulating the norms for fixing the period of construction contracts.
(2.) Clause 4.3 of the contract in question stipulates the conditions for the bidders to be qualified for the award of the contract. Clauses 4.3 C(a) and 4.4 read as under:- "4.3 To qualify for award of the contract, each bidder in its name should have: . . C In addition to above, each bidder to be eligible or qualify should have submitted/attached with his technical bid- (a) an undertaking that his available bid capacity, calculated as per clause 4.4 below, is more than the estimated value of the project/work (as specified in BDS). 4.4 Bid Capacity The bid capacity of the prospective bidders will be calculated as under: Assessed Available Bid Capacity = (A*N*2-B) Where A = Maximum value of Civil Engineering works executed in any one year (year means Financial year) during the last five years (updated to the price level of the Financial year in which bids are received at a rate per year as indicated in the BDS) taking into account the completed as well as works in progress. N = Number of years prescribed for completion of the Project/Works for which these bids are being invited (e.g. 7 months = 7/12 years) B = Value (updated to the price level of the year indicated in BDS) of existing commitments (only allotted works) on the last date of submission of bids as per bidding document and on-going works to be completed during the period of completion of the Project/Works for which these bids are being invited. Note: The statement showing the value of existing commitments and on-going works as well as the stipulated period of completion remaining for each of the works listed should be attached along with certificates duly signed by the Engineerin-Charge not below the rank of an Executive Engineer or equivalent."
(3.) The formula is not challenged. The petitioner's grievance is that the period of the contract ought to be fixed rationally and on valid criteria.;


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