RAUNAQ INTERNATIONAL LIMITED Vs. PUNJAB STATE ELECTRICITY BOARD

JUDGEMENT

(1.) This order can conveniently dispose of Civil Writ Petitions 142141 and 14920 of 1995 as the challenge in both of them is to the award of a miscast by the Punjab State Electricity Board (for short the Board) in favour of M/s. Technofab Engineering Limited, New Delhi a respondent in these cases. Brief facts leading to the filing of these petitions may first be noticed.

(2.) By a notice dated January 28, 1995 the Board invited sealed tenders for the work of design, supply, erection and commissioning of low pressure, piping system e.g. fuel, oil, Aux. steam, cooking/sevice/DM waters compressed air for 2 x 210 M.W. Guru Nanak Dev Thermal Power Plant, Bhatinda Step III (hereinafter called the contract). The tender documents along with earnest money prescribed therein were to reach the Board by March 10, 1995 which date was extended up to April 17, 1995. The tender documents inter alia contained instructions to be observed by the tenderers which was in consonance rite provisions of the Purchase Regulations framed by the Board under Section 79(g) of the Electricity (Supply) Act, 1948. As per regulation 12 read with Clause 13 of the instruction, each tenderer quoting a price up to Rs. 5/- crores was to deposit earnest money of Rs. 1/- lac and for a quotation of more than Rs. 5 crores the earnest money was Rs. 2/- lacs. However, as per regulation 12(11) read with Clause 13(11) certain categories including Small Scale Industries duly registered with Punjab Government or with National Small Scale Industries Corporation were exempted from depositing the earnest money.

(3.) In response to the notice inviting tenders. M/s. Lloyds Insulation (India) Limited, M/s. Technofab Engineering Limited, M/s. Zuberi Engineering Company, International Limited; M/s. Industrial Engineering and Fabricators (Pvt.) Limited M/s. General Mechanical Works (referred to hereinafter as Lloyd, Technofab Zuberi, Raunaq, IEF and GMW respectively) submitted their bids for the contract. The total price as quoted by these companies for the contract was as shown against the name of each company and their merit position was also as under : Bidder Total quoted price Merit position Lloyd 5,60,62,500/- Lowest Technofeb 5,72,00,189/- IInd Zuberi 6,17,12,261/- IIIrd Raunaq 6,45,00,000/- IVth IEF 8,40,50,000/- Vth GMW 9,04,56,000 Vlth.