BHARAT HOTELS LTD Vs. STATE OF HARYANA
LAWS(P&H)-2008-8-63
HIGH COURT OF PUNJAB AND HARYANA
Decided on August 21,2008

Bharat Hotels Ltd Appellant
VERSUS
STATE OF HARYANA Respondents

JUDGEMENT

HEMANT GUPTA, J. - (1.) THE challenge in the present writ petition is to the communication dated. 7.11.2007 (Annexure P.8) as well as the advertisement dated 15.12.2007 (Annexure P.10), whereby the respondents have invited additional offers in respect of the opening of "The State of the Art Hotel/Hospitality Management Institute" at Tilyar (Rohtak) and Badhkal (Faridabad).
(2.) THE respondents invited the Expression of Interest (for short 'the EOI') from interested institutions/hotel chains/societies/bodies possessing experience and expertise in hotel, hospitality, travel and tourism management for setting of "The State of the Art Hotel/Hospitality Management Institutes" at Tilyar (Rohtak) and Badhakal (Faridabad) vide advertisement dated 13.2.2006 published in the Economic Times. The last date for receipt of EOI was 31.3.2006. The petitioner is stated to be a major player in the Hotel and tourism sectors and one of the leading business houses in the country commanding forefront position in hospitality chain under the banner of "Bharat Hotel" with a net worth of more than Rs. 7500 crores. The petitioner submitted its EOI in the project vide letter dated 18.2.2006. The petitioner was called to appear before a Committee under the Chairpersonship of Minister of State for Tourism, Haryana on 12.6.2006 for making a presentation on its EOI for explaining the profile of its organisation and also for giving the details of the proposed offer for setting up the proposed institute. Apart from the petitioner, 6-7 other interested parties also made their representations on 12.6.2006. It was on 5.6.2007, almost a year later, the petitioner was informed that its name has been short listed for obtaining financial bid for the project. A copy of the Request for Proposal along with the site plan of the land identified was also enclosed. The pre-bid conference was organised for 27.6.2007. As per the Request for Proposal documents, the respondents were to make available land measuring 5 acres approximately at Badhakal on lease hold basis, initially for 33 years, extendable for 33 years at the first instance and another 33 years at the next instance. The reserve price was kept at Rs. 6,29,97,000/-. The petitioner also attended the pre-bid conference held on 27.6.2007 and in pursuance. of the said conference, the petitioner was requested to send the financial bid as per procedure laid down in the Request for Proposal document. It was further stated that the financial bid must reach the office of respondent No. 2 by 11 a.m. on 11.9.2007. Such financial bid was submitted in an envelope-Part I containing power of attorney in favour of the Senior Vice President Development for signing of the application as also the earnest money of Rs. 6,30,000/- in the form of a demand draft dated 10.9.2007. Another envelope-Part II containing the financial bid alongwith the covering letter was also submitted. Both the envelopes containing the documents were kept in outer envelope along with other documents including project report, balance sheet; profit and loss account of the Petitioner for the last 3 years and auditor's certificate regarding net worth. Subsequently, the petitioner was informed that the financial bid would be opened by the Committee on 9.10.2007 at 4.00 p.m. in the meeting under the Chairpersonship of the Minister of State for Tourism.
(3.) IT is the case of the petitioner that the petitioner was short listed for submission of the financial bid after having made the presentation and having attended the pre-bid conference and after completion of all the formalities provided in the Request for Proposal documents. The petitioner was successful bidder but a letter dated 7.11.2007 was received, whereby the petitioner was intimated that it was decided to keep the offer of the petitioner valid for the time being and that it has been further decided that fresh tenders may be floated for inviting additional offers. It was also communicated that the petitioner may send revised offers in response to the fresh tenders, if it so desires, otherwise its existing bid shall remain valid till the date of its validity or as revalidated by the petitioner later on depending upon the eventuality. In terms of the decision communicated, an advertisement has been inserted on 15.12.2007 inviting EOI for the same project. The petitioner has contended that once the bid of the petitioner is found to be the highest amongst all eligible tenderers, then the respondents cannot seek additional offers. Before examining the said argument in detail, some of the relevant conditions in the Request for Proposal, are worth to be noticed. The said conditions read as under : "10. The reserve price for land at Tilyar Lake Tourist Complex, Rohtak shall be Rs. 4,40,22,000 (rupees four crores forty lacs twenty two thousand only) and for the land at Food Craft Institute, Faridabad, the Reserve Price shall be Rs. 6,29,97,000 (rupees six crores twenty nine lacs and ninety seven thousand only). The offer sent by the applicant shall indicate the offer stating the maximum amount he would offer to pay over and above the above mentioned reserve price. The reserve price so quoted/accepted shall be payable in the following manner. xx xx xx 12. The applicant shall be required to pay 1% of the reserve price as earnest money in the shape of Demand Draft Payable in favour of the Director, Tourism Department, Haryana at Chandigarh. The demand draft of the earnest money shall be required to be sent alongwith financial bid/offer. xx xx xx 20. All the pre-qualified applicants are required to submit financial bid in accordance with the guidelines set forth in this Request for Proposal. Pre- qualified applicants shall provide information sought herein in the prescribed formats in order to accurately establish and interpret the information provided. The cost of preparation of Financial Bid and related expenses shall be borne by the Pre-qualified applicants themselves. xx xx xx 22. The Financial Bids would be evaluated for completeness and only completed Financial Bid, would be taken up for final evaluation. 23. The Financial Bids of only those Pre-qualified applicants whose Financial Bids are found complete shall be opened. The Project would be awarded to the Pre-qualified s applicant whose Financial Bid is declared as the highest. PART-A xx xx xx 20. Two copies of Request for Financial Bid (Request for Proposal) shall be furnished to the pre-qualified bidder. One copy may be returned alongwith the financial bid duly signed every page as indicated. Earnest money shall be submitted in separate envelopes along with financial bid in separate sealed cover otherwise the same shall be rejected. 28. No changes to a submitted Financial Bid, shall be allowed under circumstances. 29. The Financial Bid and all related correspondence and documents shall be made in English language only. 30. The Financial Bid for each of the project would be in two parts viz. Part-I, which will comprise of Earnest Money and Power of Attorney, and Part- II, which will be the Financial Bid. The Pre-qualified applicant would provide all the information as required in Request for Proposal. xx xx xx 32. Each of the three envelopes shall bear the name and address of the pre- qualified applicant for its identification and recording the same in the register and also if the Bid documents are to be returned unopened in case it is tendered late or is otherwise not complete. xx xx xx 34. First cover shall be opened in the presence of the Pre-qualified applicant's representatives at time and date specified by Tourism Department, Haryana in the Request for Proposal. Second cover containing detailed Financial bid shall be opened immediately after ascertaining the availability of required Earnest Money in the first cover, in the form and manner specified in the Request for proposal.";


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