BASANT BAGDE Vs. HINDUSTAN PREFAB LIMITED

JUDGEMENT

(1.) This is the second round of litigation involving the parties stemming from he award to the Petitioner, by the Respondent No. 1 Hindustan Prefab imited ('HPL'), the contract of construction of low cost houses in eleven ackages, in two lots of five and six packages each, at Raipur in hhattisgarh. This time around, the petitioner seeks a writ of certiorari to uash the decision of the HPL conveyed by its letter dated 16th September 009 cancelling six of the eleven packages awarded to the Petitioner. This etition also seeks a writ of mandamus directing the Respondents "not to ancel the contract of the Petitioner in respect of the remaining five ackages."

(2.) The background to the present petition under Article 226 of the Constitution is that on 20th March 2008 HPL issued a notice inviting sealed percentage rate tender ('NIT') for construction of houses under the Basic Services for Urban Poor ('BSUP') Scheme of Jawaharlal Nehru National Urban Renewal Mission ('JNNURM') in Raipur City. Clause 5 of the Special Conditions of Contracts ('SCC) required the tenderer to quote rates on percentage basis "(below/at par/over) Madhya Pradesh (Chhattisgarh) Schedule of Rates, 1999." Clause 11.01 of the NIT provided that in case of percentage rate tenders, "the tenderer should quote a unique single percentage (plus/at par/minus) over the total estimated amount given in the schedule/bill of quantities." It further stated that "under no circumstances, such a tenderer is allowed to quote separate percentages for individual items, trades or group of items."

(3.) It is stated that on 3rd April 2008 the Petitioner submitted six tenders on ercentage rate basis. The quoted rates were 109% above the SOR, after taking into account the amended rates. The tenders were opened on that very day. The lowest (L-1) bidder was awarded seven packages out of total 18 packages at the rate of 59% of SOR. It is stated that on 9th May 2008, the HPL negotiated with the Petitioner in terms of Clause 7 of NIT. The Petitioner was asked to submit his acceptance for executing the contract at the L-1 rate. In response thereto, by a letter dated 9th May 2008 the Petitioner agreed to quote its rates at the L-1 price which was 59% above SOR, subject to grant of a minimum of five packages.