GANESH ENGINEERING WORKS Vs. UNION OF INDIA

JUDGEMENT

(1.) -Diesel Locomotive Works (DLW for short) is a unit of Indian Railways engaged in the manufacture of locomotives near Varanasi. For the manufacture of locomotives it requires steel plates and sheets and other ferrous and non-ferrous material leaving huge quantities of ferrous melting scrap including steel plates and sheets as-waste. This scrap is stored in the scrap yard by DLW and is periodically disposed of by inviting tenders for its purchase and removal. In respect of one such lot of nearly 2000MT (plus-minus 25%) sealed tenders were invited, to be opened on 29th March, 1990.

(2.) 21 offers by sealed tenders were received from various parties. The tender submitted by respondent No. 6 was finally accepted. This is challanged by the petitioner, who was also one of the tenders, on the ground that it had tendered the highest rate and its tender had been wrongly rejected. It is also contended that the tender of respondent No. 6 has been wrongly accepted even though it had not complied the tender conditions.

(3.) IN the rejoinder affidavit the petitioner claims to have submitted a crossed cheque along with tender papers which appears to have been removed mala fide with a view to award the tender to respondent No. 6. Particulars of the cheque could not be furnished 'by the petitioner as according to it, there was no column in the tender papers for this purpose and it had no opportunity to point this out as it was not conveyed the rejection of petitioner's tender. It is also alleged that a loss of atleast four lacs has been caused to the Government due to rejection of petitioner's offer which was much higher than that of respondent No. 6. Lastly, acceptance of offer made by respondent No. 6 was challanged as the mode of depositing the earnest money along with tender was not as prescribed having been submitted by loose cheque drawn on personal account and not in cash or by demand draft.