LAWS(MAD)-1991-2-59

ANDHRA CIVIL CONSTRUCTION COMPANY Vs. GOVERNMENT OF INDIA

Decided On February 07, 1991
ANDHRA CIVIL CONSTRUCTION COMPANY REPRESENTED BY ITS MANAGING PARTNER, B.HANUMANTHA RAO Appellant
V/S
GOVERNMENT OF INDIA, REPRESENTED BY ITS SECRETARY, MINISTRY OF SHIPPING AND TRANSPORT, TRANSPORT BHAVAN, NEW DELHI Respondents

JUDGEMENT

(1.) THESE appeals are directed against a common judgment single Judge dated 28.3.1990 dismissing W.P.Nos.12324 of 1987; 916 of 1988 1988.

(2.) THE appellant in all the three writ appeals is the unsuccessful writ petitioner, Civil Construction Company-a Civil Engineering Firm having its Registered Office from a perusal of the pleadings of the parties, it transpires that during 1979, the Port Trust, with a view to deepen the approach channel at Tuticorin Port from invited tenders for deepening the approach channel measuring 1400 Mts. Work to two contractors in December, 1979 with a view to have the deepening work expeditiously. THE channel was divided into two portions and (i) Reach from Ch.00 525 Mts. and from Ch.1050 Mts. to 1400 Mts. was allotted to the appellant and from Ch.525 Mts. to 1050 Mts. was allotted to Dredging Corporation of (hereinafter called the D.C.I.) Work orders were accordingly issued to the appellant as D.C.I. THE appellant completed the deepening of the approach channel between Mts. to 475 Mts. and from Ch.1050 Mts. to 1400 Mts. However, D.C.I, could subsequential work because of the existence of some rock in the portion for which had been allotted to them. Even the appellant could not, for the same reason execute the work from Ch.475 Mts. to 525 Mts. Efforts made by the Development (Ports) and the Chairman, Tuticorin Port Trust did not yield any constructive regard to the further progress of the work by D.C.I, and consequently, the Tuticorin Trust decided to have the balance of the work entrusted to D.C.I, carried out through agencies.

(3.) SO far as the three Indian Contractors who has submitted their tenders are concerned, the Tender Committee was of the opinion that the appe-lant firm, with an completion time of twenty-one months (including tolerance quantity), had an edge D.C.I. who had given 27 month3 as the completion time. The Tuticorin Port Trust, therefore, initiated proposal on the recommendation of the Tender Committee. In the meantime, transpires that the foreign firm gave a post-tender escalation of their offer and account, it lost its competitiveness. While dropping the said offer, a consolidated proposal line with the recommendation made by the Tender committee was sent to the concerned Ministry in the Government of India in September, 1984, to explore the possibility securing the required foreign exchange to enable the Port Trust to call for a global tender otherwise, to allot the work to the Indian contractors. Having somehow acquired knowledge about the recommendation of the Tender Committee, the appellant appears to have a proposal for purchase and import of a Dipper Dredger to undertake the dredging time. The appellant appears to have also thought of using the imported machinery completing the balance of the work which was already with them (Ch.475 Mts. to 525 The Port Trust appears to have, after consideration of various aspects resolved to tender to the appellant after the proposal was placed before the Board of Trustees, resolution dated 28.5.1985, based on the majority decision of the Board of Trustees. Board of Trustees appears to have taken note of the terms and con-.ditions regarding actual acceptance of the tender and the non-availability of the requisite foreign exchange calling global tenders.