LAMIFAB INDUSTRIES Vs. UNION OF INDIA

JUDGEMENT

(1.) The Rajasthan Agricultural Competitiveness Project Management and Implementation Society invited sealed Proposals for supply and installation of Geo-Membrane sheets in the farmers' field.

(2.) The petitioner-company apart from others submitted their proposals before the last date for its submission. The proposals were opened on 7th October, 2015 where the petitioner-company remained lowest. The petitioner-company received letters on 24 th November, 2016 and 19th December, 2016 to return their proposal security with intimation of assignment of work to other company. The reason for rejection of proposal was not given in the letter dated 24th November, 2016 but it was conveyed vide letter dated 19th December, 2016. The rejection of proposal was for want of proposal security for a period of 135 days. The petitioner-company had given proposal security for a period of 45 days. As per terms of proposal document, the bid was liable to be rejected if proposal security is not given for the required period.

(3.) The proposal was to be submitted with validity of 90 days and proposal security of a period of bid validity plus 45 days totalling 135 days. The petitioner-company has submitted proposal security for a period of 45 days only thus their proposal was rejected.