FLY WHEEL TRAVELS Vs. BHARAT SANCHAR NIGAM LTD

JUDGEMENT

(1.) This writ petition is filed by M/s. Fly Wheel Travels, a partnership firm, with a prayer to issue a writ of mandamus declaring the proceedings of cancellation bearing LR.No.WM/142/BSNL/HYD/Tenders/2004-05/57, Dated: 20/21-12-2004 as well as the consequential proceedings of even date bearing LR.No.WM/142/BSNL/HYD/HV/TENDERS/04-05/59 of the respondents as illegal, arbitrary and unenforceable and consequently direct the respondents to act in accordance with their acceptance letter No.WM/142/BSNL/HV/TENDERS/04-05/37, DATED 16-11-2004.

(2.) The facts that led to filing of the writ petition be stated briefly as under: Bharat Sanchar Nigam Limited, Suryalok Complex, Abids, Hyderabad (for short BSNL)-1st respondent herein, invited tenders for hiring light motor vehicles such as non-AC Ambassador cars, jeeps, matadors etc., in Hyderabad Telecom District. About eleven persons responded to the tender notification. A tender committee evaluated the tenders, had shortlisted eight tenderers out of eleven and had called them for negotiations on 4.10.2004. The respondents accepted the petitioner's tender and required the petitioner to pay or give bank guarantee for Rs.3.50 lakhs towards security deposit and to submit non-judicial stamp paper for entering into an agreement. The petitioner secured the requisite bank guarantee from State Bank of Hyderabad, Malakpet Branch, Hyderabad. When the petitioner went to furnish the bank guarantee, the respondents refused to accept the same and issued letter dated 22.11.2004 asking him to submit once again proof of experience with any State or Central Government Organisation or Public Sector undertaking and copies of hired vehicle bills, cheques or DDs etc. The petitioner submitted the requisite information on 26.11.2004 together with copies of bills, details of vehicles hired to N.C.R.I. and the cheques issued by National Council for Rural Institutes, Hyderabad. The petitioner received communication on 24.12.2004 whereunder the respondents informed the petitioner of the cancellation of the tender and also calling for explanation as to why it should not be blacklisted and its EMD of Rs.56,000/- shall not be forfeited. Questioning the rejection of tender and the show-cause notice as to black listing and forfeiture of EMD of Rs.56,000/-, this writ petition is filed.

(3.) The writ petitioner filed WPMP No.32868 of 2004 seeking suspension of the show-cause notice issued by the respondents proposing to black list it and to forfeit the entire EMD pending disposal of the writ petition. This Court by order dated 31-12-2004 permitted the petitioner to file additional material and also directed the respondents to consider the explanation submitted by the petitioner to show-cause notice and pass appropriate orders there on in accordance with law. The respondents considered the explanation and additional material furnished by the petitioner and passed orders on 2.2.2005 whereunder the explanation offered by the petitioner was found to be not satisfactory and reserved their right to proceed further in accordance with the said show-cause notice.