LAWS(PAT)-2016-10-157

RICHA INDUSTRIES LIMITEDHAVING ITS REGISTERED OFFICE AT PLOT NO. 29 Vs. BIHAR STATE BUILDING CONSTRUCTION CORPORATION LIMITED THROUGH ITS CHIEF GENERAL MANAGER

Decided On October 18, 2016
Richa Industries Limitedhaving Its Registered Office At Plot No. 29 Appellant
V/S
Bihar State Building Construction Corporation Limited Through Its Chief General Manager Respondents

JUDGEMENT

(1.) Heard learned counsel for the petitioner and learned counsel for the Bihar State Building Construction Corporation Limited.

(2.) The petitioner seeks quashing of the letter dated 13.5.2015 by which the letter of allotment of contract dated 21.2.2015 issued to the petitioner and the letter of acceptance dated 26.2.2015 issued by the respondent Corporation have been withdrawn and further it is stated therein that the work was being re-tendered due to the indisciplined act of the petitioner and the petitioner was henceforth being declared unfit to participate in any tender of Bihar State Building Construction Corporation Limited.

(3.) The petitioner participated pursuant to the tender notice dated 20.11.2014 for construction of godowns of different dimensions and numbers at several places, including the districts of Muzaffarpur and Vaishali. After opening of the technical bid and the financial bid the petitioner was found to be the lowest tenderer. Letter of Acceptance was issued and the work was decided to be allotted in its favour but only at the price mentioned in the original B.O.Q., whereas the petitioner had quoted 10% above the scheduled rates. The petitioner was informed thereafter by letter dated 9.4.2015, in response to its letter dated 27.3.2015, that any extra amount over the approved B.O.Q. rate had not been possible and if he was not willing to do the work on the said rate he had to intimate the same to the authorities within a week so as to cancel the tender and to debar the petitioner from participating in any tender of works of the Corporation for five years, otherwise agreement was to be executed by him within three days from the date of issue of the letter and the work was to be started immediately. The petitioner protested to the said letter by letter dated 13.4.2015 stating as to under what circumstances of the tender clause the petitioner was forced to accept the LOA and also expressed his shock to see the reply in which the aforesaid statements have been made, including relevant provisions of the contract and it was stated that there was nothing in the 'Award of Contract' which showed that the contract could be awarded without the acceptance of bidder and further stated that the petitioner could not be debarred nor on the threat of debarment could be forced to accept anything. Again by letter dated 29.4.2015 the petitioner reiterated that it could only work at the quoted price and not on the scheduled rates and as such the letter of command could not be followed as the same would lead to heavy losses for the petitioner and accordingly a request was made to either return the earnest money deposit or award the tender at the quoted rates and not at the scheduled rates. Thereafter the impugned letter dated 13.5.2015 has been issued by which the letter of allotment of work dated 21.2.2015 and subsequent letter of acceptance issued by the Deputy General Manager, BSBCCL, PIU, Muzaffarpur dated 26.2.2015 were withdrawn and further it was stated that the work was being re-tendered and due to indisciplined act the petitioner was declared unfit to participate in any tender of Bihar State Building Construction Corporation Limited. Aggrieved by the same the petitioner has come up before this Court.