SAI CONSTRUCTION Vs. STATE OF U P

JUDGEMENT

(1.) A tender notice has been issued by the Executive Engineer in the Rural Engineering Department of Aligarh division inviting tenders for certain work of a civil nature. The petitioner is aggrieved by the condition imposed in the tender notice insofar as it directs that 5% of the contract amount should be furnished as earnest money at the time of submitting tender forms. The submission of the petitioner is that under the U.P. Financial Hand Book Volume-V Part-I Schedule XIX, Para 308 (18), the earnest money required to be deposited is subject to a maximum of 2% of the total cost of the work tendered. Hence, it has been submitted that it was not open to the third respondent to fix or demand earnest money at a rate higher than 2% of the cost of the work which has been tendered.

(2.) The relevant conditions which are contained in the Financial Hand Book are as follows:

(3.) Reliance has been placed by the petitioner on the judgement of a Division Bench of this Court in M/s. Jal Akash vs. State of U.P. & Ors.,2006 6 ALJ 22