HOLOSTIK INDIA LIMITED Vs. STATE OF ORISSA REPRESENTED THROUGH ITS PRINCIPAL SECRETARY, DEPARTMENT OF EXCISE

JUDGEMENT

(1.) THE petitioner is a Company registered under the Companies Act, 1956 and carries on business in manufacturing and supplying High Security Holograms to different States, Authorities and Institutions. In this writ application the petitioner assails the decision of the State Government in the Department of Excise in directing for re -tender in respect of Tender No.1144/Ex./1 -Ex -48/2010 dated 28.2.2011 for supply of Polyester Security Holograms (Excise Adhesive Labels) in super -session of the decision of the Tender Committee constituted for the purpose and further prayer has been made for a direction to the opposite party to issue work order, in favour of the petitioner.

(2.) THE facts leading to filing of this writ application are that the State invited a tender for manufacturing and supplying of Polyester Security Holograms (Excise Adhesive Labels) to be affixed on the cap of IMFL bottles on 28.2.2011. A Tender Committee; was constituted by the State Government having a Technical Committee and an Expert Committee to evaluate the capability of the manufacturer and quality/standard of the High Security Holograms to be supplied. A corrigendum was issued on 21.3.2011 directing the tenderers to quote their price as per 1000 (one thousand) holograms. In response to the said Tender Call Notice, the petitioner submitted its tender in two parts i.e. Technical Bid and Price Bid. The other tenderers also submitted their bids in response to the said Tender Call Notice. The Technical Committee evaluated the tender documents of all the tenderers on 19.4.2011 and finalized the Technical Bids on 15.7.2011. The Technical Committee found only three tenderers to be qualified namely, the petitioner, Holoflex Ltd. and Alfa Lazertech Ltd. Accordingly, the petitioner and the above two tenderers, who had qualified during evaluation of technical bids, were invited by the Tender Committee for opening of the price bid on 23.7.2011. The price bids were opened in presence of all the three successful bidders including the petitioner and the petitioner having quoted the price of RS.192.90 per 1000 (one thousand) holograms became the lowest bidder amongst the technically qualified bidders. The petitioner was thereafter called for negotiation and after negotiation, the petitioner agreed to reduce the price from Rs.192.90 per 1000 (one thousand) to Rs.180.00 per 1000 (one thousand) holograms. The same was accepted by the Tender Committee. The recommendation of the Tender Committee was thereafter placed before the State Government in the Department of Excise for approval. Since there was unreasonable delay in issuance of the work order, a representation was submitted by the petitioner on 23.8.2011 requesting the Department to issue the work order. On 6.9.2011 "the petitioner received a letter from the State " Government intimating therein that the price offered by the petitioner in the quotation for printing and supplying of 1000 (one thousand) (Excise Adhesive Labels) as Rs.192.90 paisa was found to be lowest. But after negotiation the petitioner has mentioned in the writing that the offer price is RS.180.00 per 10,000 (ten thousand) holograms and directed the petitioner to clarify the matter. The petitioner in response to the said letter clarified that the tender notice and corrigendum issued by the Government clearly provided that the price to be quoted by the bidder should be for 100 holograms and, accordingly, after negotiation, the price quoted by the petitioner at the rate of Rs.180.00 should be for 1000 hologram and not for 10000 holograms, which has been inadvertently mentioned in the record at the time of negotiation. Such explanation of the petitioner was not accepted in spite of the recommendations made by the Authorities at all levels and a decision was taken to re -tender for which this writ application has been filed.

(3.) SHRI A.K. Parija, learned Senior Counsel appearing for the petitioner drew attention of the Court not only to the notice inviting tender but also the corrigendum and with reference to the corrigendum, Shri Parija submitted that the tenderers were required to quote the price for 1000 number of holograms and, accordingly, the petitioner had quoted the price of RS.192.90 per 1000 number of holograms. Subsequently at the time of negotiation, after the petitioner was found to be the lowest bidder, the petitioner agreed to supply 1000 holograms at the rate of Rs.180/ -, but inadvertently the representative of the petitioner had written that the rate at which the petitioner is willing to supply the holograms is Rs.180/ - per 10000 holograms. According to the learned Senior Counsel, It was a mistake/error on the part of the representative of the petitioner to quote the price of RS.180/ - per 10000 holograms in stead of 1000 holograms. The Tender Committee therefore realized the same and recommended for approval of the Tender submitted by the petitioner and the recommendation of the Tender Committee was also accepted by the Principal Secretary of the concerned Department but ultimately the Government took a decision for re -tendering.