BHASKAR INDUSTRIAL DEVELOPMENT LIMITED Vs. UNION OF INDIA

JUDGEMENT

(1.) The petitioners who are two in number along with the third respondent herein which is said to be a public sector undertaking,- along with many others, participated in a tender for supply of various types of sleepers pursuant to a tender floated by the second respondent herein being Tender No. Track-1 of 2001. By reason of the said tender, a notice inviting tender was called in respect of 6,30,000 sleepers. Having regard to the terms and conditions of the said notice inviting tender, the participants submitted their offer to a limited quantity. The positions of the parties upon submission of their respective offers would appear from the following chart:

(2.) Improving vigilance administration is possible only if system improvements are made to prevent the possibilities of corruption 'and also encourage a culture of honesty. In exercise of the powers conferred on the CVC by Section 8(1)(h), the following instructions are issued for compliance:

(3.) Some of the organisations have sought clarification as to whether they can consider the L-2 offer or negotiate with that firm if L-1 withdraws his offer before the work order is placed, or before the supply or execution of work order takes place. In this regard, it is clarified that such a situation may be avoided if a two-bid system is followed (technocommercial) so that proper assessment of the offers is made before the award of work order. Therefore, if L-1 party backs out, there should be retendering in atransparent and fair manner. The authority may in such a situation call for limited or short notice tender if so justified in the interest of work and take decision on the basis of lowest tender.