NARAIN CONSTRUCTION Vs. STATE OF U.P.

JUDGEMENT

(1.) The Indian Turpentine and Rosin Company Ltd., Clutterbuck Ganj, Bareilly was a Government undertaking that had been declared sick under the Sick Industrial Companies Act (SICA),1985 (hereinafter referred to as sick Government company). Proceedings for its revival were pending before the Board of Industrial and Financial Re-construction (BIFR). Secretary, Department of Industrial Development of Government of U.P. invited tenders vide memorandum of information (Annexure No.2 to the writ petition) for takeover/sale of the sick Government company. Offers were invited from interested parties for takeover of the sick Government company. Items included in the tender notice consisted of factories; distillery (alcohol) unit and ETP; other land and building consisting of (a) head office and (b) hospital compound.

(2.) The petitioner before this Court is a partnership firm, which submitted its bid in respect of land and building of (a) head office and (b) hospital compound. The head office land and building included an area of 19260 sq. mts. and its reserved price was fixed at Rs.116.443 lacs. The other item in respect of which the petitioner submitted its bid was the land and building included in the hospital compound ad-measuring 11362 Sq. mts. having reserved price of Rs.67.916 lacs.

(3.) The advertisement specified that tendering party had to submit bid along with earnest money of 2.5% of the reserve price by way of a bank draft in favour of U.P. Government. Clause (III) of the terms and condition of the advertisement specified general conditions. Clauses 4 and 5 of Clause (III) reads as under:-