LAWS(KAR)-2017-6-252

GOVERNMENT OF KARNATAKA Vs. GSJ ENVO LTD.

Decided On June 30, 2017
GOVERNMENT OF KARNATAKA Appellant
V/S
Gsj Envo Ltd. Respondents

JUDGEMENT

(1.) These two appeals are presented by the State of Karnataka and the Bengaluru Water Supply and Sewerage Board ('BWSSB' for short) respectively, challenging the judgment and order dated December 31, 2015, passed by the Hon'ble Single Judge directing the appellants to act in pursuance of the letter of acceptance dated February 21, 2014, issued by the second appellant-BWSSB.

(2.) Briefly stated the facts of the case are, the BWSSB floated a tender on August 28, 2013, for construction and commissioning of a 192 MLD Intermediate Sewage Pumping Station at the Koramangala Sports Complex, Koramangala, Bengaluru. The envisaged project intended the successful bidder to design, supply and commission the project within a time bound period of 24 months and to maintain the same for a period of seven years. The estimated cost was Rs.44,05,47,810/-. There were two bidders, M/s GSJ Envo Limited ('M/s GSJ' for short) the writ petitioner-contesting respondent herein and one M/s EMS Infra Com., Ghaziabad. The bid submitted by M/s EMS Infra Com., was rejected in the technical evaluation. The financial bid of the petitioner, after negotiation was for Rs.111,78,29,344/- which was about 154 % in excess of the estimated cost. BWSSB issued a letter of acceptance dated February 21, 2014 to the writ petitioner. On the very next day, namely the February 22, 2014, it was communicated to the writ petitioner, that the work was kept in abeyance. Finally, by a communication dated October 18, 2014, the BWSSB annulled the bid process. The writ petitioner challenged the same in the instant writ petition inter alia with a prayer for a writ of certiorari to quash the letter of annulment and for a further direction to give effect to the letter of acceptance.

(3.) The Hon'ble Single Judge quashed the annulment and directed the respondents to act in pursuance of letter of acceptance.