DAULATRAM INDUSTRIES Vs. UNION OF INDIA

JUDGEMENT

(1.) This writ petition is instituted aggrieved by the action of the respondent/Railways in not awarding the contract of maintenance of RMPU's fitted in Air Conditioned coached including POH activity at LGD & TPTY shops to the petitioner even though, it was identified as lowest bidder.

(2.) The facts are in narrow compass. On 26.4.2013 the South Central Railway of the Indian Railways (second respondent) issued tender notice calling for tenders from interested parties for awarding the contract of maintenance of RMPU's fitted in Air Conditioned coaches including POH activity at LGD & TPTY shops. The contract once awarded would be in force for a period of three years and the estimated cost of the tender was Rs. 11,73,11,715/. Initially, tender notification provided for price variation clause, however, by way of corrigendum issued on 13.5.2013 the price variation clause was deleted. The petitioner as well as the third respondent have submitted their tenders. Tenders were opened on 19.6.2013 and petitioner was announced as lowest bidder. On receiving the intimation that petitioner was identified as lowest bidder, petitioner addressed letter dated 23.8.2013 to incorporate price variation clause as originally notified in the tender notification and renotify the tender. It has followed it up with further correspondence. Petitioner was not informed about the decision taken on the request made to introduce price variation clause. While petitioner was awaiting response to his letters for introduction of price variation clause, petitioner was informed by letter dated 7.10.2013 returning the FDR submitted by the petitioner towards Earnest Money Deposit. Petitioner avers that ignoring the petitioner's lowest bid, second respondent entered into negotiations for awarding of the contract to the third respondent.

(3.) The action of the respondents in not awarding the contract to the petitioner though it was the lowest bidder, is assailed on the following grounds: