S. MATHI Vs. UNION OF INDIA

JUDGEMENT

(1.) THE challenge in this writ petition is against the awarding of a contract by the Railway authorities, on various grounds. Mainly it is pointed out that once the reserve price has been fixed, the acceptance of a tender below such a price cannot be justified and the same is therefore arbitrary. The tender notice is dated 5.10.2010 by which sealed tenders in TWO PACKET SYSTEM for awarding contract for Parcel Handling at Mangalore Central and Mangalore Junction and many other Railway stations under its jurisdiction, were invited. There are two phases for the tenders, viz. Credential bid and financial bid., Ext.P1 is the copy of the tender notice which provides for reserve price in respect of various items. It is averred in para 5 of the writ petition that out of 14 and odd applicants, ten applicants including the petitioners were qualified in the credential bid conducted on 29.10.2010. The rates offered by the petitioners in tabular form is given in para 7 of the writ petition, along with that of the fifth respondent.

(2.) HEARD learned Senior Counsel for the petitioners Shri R.D. Shenoy, learned counsel for the Railways Shri Mohammed Shah and learned counsel appearing for the fifth respondent Shri G. Sreekumar (Chelur).

(3.) IT is therefore submitted by the learned Senior Counsel for the petitioners that once the reserve price is quoted by the petitioners, the rate quoted by the fifth respondent cannot be said to be competitive and the yardstick adopted by the respondents is clearly arbitrary. Ext.P7 is the proceedings showing the acceptance of tender of the fifth respondent.