Dismissed

Shree Mahamaya Constructions, v. State of Chhattisgarh

Chhattisgarh HC4 Oct 2018WPC/1459/2018

Case brief

AI extract

What is this about?

High Court of Chhattisgarh held that bid capacity 'N' component excludes rainy season if NIT specifies completion time excluding it. Petitioner contention for adding four months negated. Writ application dismissed as re-calculation showed bid capacity was lower than probable contract amount.

What did the court decide?

Writ application dismissed after re-calculation showed bid capacity lied below probable contract amount. Petitioner cannot claim rainy season addition.

Shree Mahamaya Constructions, Vs State… — Contract and Commercial Disputes | Chhattisgarh HC (2018)

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AFR

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HIGH COURT OF CHHATTISGARH, BILASPUR

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WPC No. 1459 of 2018

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Shree Mahamaya Constructions, 231, 2nd Floor, Rishabh Complex M.G. Road, Raipur Chhattisgarh. Through Its Sole Proprietor Sh. Sandeep Rungta, S/o Late Sh. G. R. Rungta , Aged About 46 Years, R/o Navkar Apartments, 3rd Block , 2nd Floor, Choubey Colony Raipur Chhattisgarh

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---- Petitioner

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Versus

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State Of Chhattisgarh Through Its Secretary Public Health Engineering Department , Mahanadi Bhawan, Mantralaya, Capital Complex, New Raipur District Raipur Chhattisgarh

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Engineer - In - Chief, Public Health Engineering Department District Raipur Chhattisgarh.

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Chief Engineer, Public Health Engineering Department Bilaspur Zone District Bilaspur Chhattisgarh

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Superintending Engineer, Public Health Engineering Department Bilaspur Division, District Bilaspur Chhattisgarh

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Executive Engineer Public Health Engineering, Korba Division District Korba Chhattisgarh

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---- Respondents

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--------------------------------------------------------------------------------------------------For Petitioner : Shri Prashant Singh, Senior Advocate with Shri Abhishek Vinod Deshmukh, Advocate For Respondent/State : Shri UNS Deo, Government Advocate

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Hon'ble Shri Ajay Kumar Tripathi, Chief Justice Hon'ble Shri Justice Parth Prateem Sahu

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Order on Board

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Per Ajay Kumar Tripathi, Chief Justice

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04.10.2018

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Heard learned counsel for the parties.

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NIT No.70/SAC/EE/PHE/Korba dated 05.01.2018 was issued by the

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Office of Executive Engineer/Health Engineering Korba Division. The NIT

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wpc 1459 of 2018

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was for providing, supplying, laying, jointing, testing and commissioning of 6010 mt raw water pumping for augmentation of water supply in the town of Pali. Since the tender of the petitioner has been rejected by the respondents on the ground of lacking 'bid capacity', the said decision is the reason for filing the writ application.

¶24

As admitted by the parties, bid capacity is required to be calculated of every tenderer on a formula. The formula is, 2 x A x (N/12) -C.

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"A" stands for maximum value of work done in one year out of last five years with 10% surcharge per annum. "N/12" stands for stipulated time for completing the work awarded. "C" stands for balance work in hand with 20% surcharge per annum.

¶26

From the arguments as well as the plea taken herein, it is accepted position that the component "N" which relates to stipulated time for completing the work is a variable component. It is variable for the reason that in cases where the NIT indicates that the period stipulated for completing the work indicates 'including rainy season', then the rainy season which is accepted to last for four months has to be included or added to the period for completing the work so awarded. When the stipulation in the NIT states 'excluding the rainy season', meaning thereby that the bid capacity will have to be calculated on the length or the time stipulated in the NIT for completing that work.

¶27

Coming to the present case, argument has been made by learned senior Advocate on behalf of the petitioner that in cases where the NIT talks in terms of excluding rainy season, the respondents have given

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wpc 1459 of 2018

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leeway to this petitioner himself in relation to other contracts. Period of four months was added, whereas, in relation to the present case they are taking a variable stand that that period is not required to be calculated or included, in calculation of the bid capacity.

¶31

It is also urged that the NIT should be understood on the basis of the terms and conditions laid down therein and a circular which has not even been reflected or is not part of any circular issued earlier cannot be allowed to be used as the basis for taking a decision on the bid capacity of a tenderer. Specific attack is on circular dated 15.06.2015 which has been brought on record as additional return of the State as Annexure E and F.

¶32

The question which arises for consideration is whether the component of "N" in the case of the present NIT will include the added four months of rainy season or the period so specified for completion of contract shall be the only criteria.

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The categorical stand of the counsel for the State is that clarity has to be sought from the general guidelines which have been issued in this regard by the Public Works Department because confusion seems to have arisen on this aspect of the matter even earlier. May be before such clarity emerged, there were instances where the period of rainy season used to get included even when the contract talked about excluding the rainy season meaning thereby that the period of contract + four months used to be the basis for calculating the bid capacity.

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wpc 1459 of 2018

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The communication ie Annexure F dated 15.06.2015 and the recent clarification in furtherance to the dispute dated 10.09.2018, Annexure E are reproduced herein below:

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Annexure- F

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fn'kk&funsZ'k

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NRrhlx<+ 'kklu yksd fuekZ.k foHkkx

¶40

ea=ky; dihVy dks EiyDl egkunh Hkous &jk;iqj

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dzekad ,Q 21&7@Vh@12@19@fufonk izfr]

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jk;qij] fnukad 15@06@2015

¶43

izeq[k vfHk;ark] yksd fuekZ.k foHkkx] jk;iqj ¼N-x-½

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fo"k; %& ih-D;w- nLrkost lfgr vkeaf=r fufonkvksa esa fcM dsisflVh dh x.kuk gsrq “N” dh x.kuk ds laca/k esaA lanHkZ %& vkidk Kkiu dzekad iz-v-@fu-@48098916@15&16 fnukad 03-06-2015

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&&&00&&&

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d`i;k mijksDr lanfHkZr i= dk voyksdu djsa A 'kklu }kjk tkjh fd;s x;s izh& DokyhfQds'ku vfHkys[kksa esa ;g Li"V gS fd N dh x.kuk ds fy;s tkjh fufonk esa vafdr le;kof/k dks gh fy;k tkuk gS A ;g iqu% Li"V fd;k tkrk gS] fd ftu fufonkvksa esa o"kkZ _rq NksM+dj dk mYys[k gS] muesa N dh x.kuk ds fy, le;kof/k esa o"kkZ _rq dks x.kuk esa 'kkfey ugha fd;k tk;s A

¶47

vkns'kkuqlkj lgh@& ¼ts-,e- yqyq½ mi lfpo NRrhlx<+ 'kklu yksd fuekZ.k foHkkx

¶48

i`-dzekad ,Q 21&7@Vh@12@19@fufonk jk;qij] fnukad @06@2015 izfrfyfi %&

¶49

1- fut lfpo] ea=h N-x- 'kklu yks-fu-fo- ea=ky;] u;k jk;iqj dh vksj lwpukFkZ A 2- fufonk izdks"B] dk;kZy; iz-v-yks-fu-fo- fljiqj Hkou jk;iqj dh vksj lwpukFkZ ,oa vko';d dk;Zokgh gsrq izsf"kr A

¶50

3- leLr eq[; vfHk;ark] yksd fuekZ.k foHkkx --------------------------- ifj{ks= ---------------------------- dks lwpukFkZ ,oa vko';d dk;Zokgh gsrq izsf"kr A

¶51

4- leLr v/kh{k.k vfHk;ark] yksd fuekZ.k foHkkx --------------------------- ifj{ks= ---------------------------- dks lwpukFkZ ,oa vko';d dk;Zokgh gsrq izsf"kr A

¶52

mi lfpo NRrhlx<+ 'kklu yksd fuekZ.k foHkkx

wpc 1459 of 2018

Annexure- E

dk;kZy; izeq[k vfHk;ark yksd LokLF; ;kaf=dh foHkkx]

¶57

r`rh; ry Cykd&4] bUnzkorh Hkou] vVy uxj] ftyk jk;iqj

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dzekad 6256@r-'kk-@iz-v-@yks-Lok-;ka-fo-@2018 vVy uxj] fnukad 10@9@2018

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izfr]

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eq[; vfHk;ark] yksd LokLF; ;kaf=dh foHkkx] fcykliqj ifj{ks= fcykliqj A

¶61

fo"k; %& izdj.k dz- WPC/1459/2018 esa ekuuh; mPp U;k;ky; NRrhlx<+ }kjk fnukad 30-08-2018 dks ikfjr funsZ'k A lanHkZ %& vkidk i= dzekad 2621@ys-'kk-@eq-v-@fcykliqj fnukad 10-09-2018

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&&&000&&&

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fo"k;karxZr ys[k gS fd ekuuh; mPp U;k;ky; NRrhlx<+ }kjk izdj.k dzekad WPC/1459/2018 esa esllZ egkek;k daLVªD'ku] jk;iqj fo:) N-x- 'kklu esa fnukad 30-08-2018 dks ikfjr fd;s x;s fu.kZ; ds ifjizs{; esa vkids lanfHkZr i= esa mYysf[kr fd;k x;k gS fd idzj.k flLVe fufonk dz- 26155 ls lacaf/kr gS A izdj.k esa eq[; vfHk;ark] fcykliqj }kjk ih-D;w- dh ik=rk fu/kkZj.k esa esllZ egkek;k daLVªD'ku] jk;iqj dks fcM {kerk de gksus ds vk/kkj ij vik= ?kksf"kr fd;k x;k Fkk A rr~le; fcM {kerk dh x.kuk ds lq= 2AN-C esa N dk eku 06 ekg fy;k x;k Fkk A

¶64

izeq[k vfHk;ark] yksd LokLF; ;kaf=dh foHkkx] N-x- jk;iqj dh v/;{krk esa xfBr tkap lfefr esa Hkh vius vUos"k.k esa yksd LokLF; ;kaf=dh foHkkx ds fufonk gsrq Bsdsnkjksa dh ik=rk dk fu/kkZj.k djus ckcr 'kklu ds vkns'k fnukad 31-12-2016 ds vuqlkj dk;Z fu"iknu {kerk ¼fcM {kerk½ dh x.kuk ds lq= 2AN-C esa N dk eku 06 ekg fy;k x;k gS A mDr vkns'k esa Li"V gS fd N dk eku fufonk esa dk;Z iw.kZ djus dh fu/kkZfjr vof/k fy;k tkos A fufonk esa izdkf'kr dk;Ziw.kZrk dh le;kof/k 06 ekg o"kkZ _rq NksM+dj yh xbZ Fkh A fcM dsisflVh de gksus ds dkj.k esllZ egkek;k daLVªD'ku] jk;iqj dks lfefr }kjk vik= ?kksf"kr fd;k x;k gS A

¶65

blh izdkj NRrhlx<+ 'kklu] yksd fuekZ.k foHkkx ds i= dz- ,Q 21&7@Vh@12@15 fufonk jk;iqj fnukad 15-06-2015 esa fcM dsisflVh dh x.kuk esa N ds eku dks fufonk esa vafdr vof/k gh fy;k x;k gS ,oa mYys[k fd;k x;k gS fd ftu fufonkvksa esa o"kkZ _rq NksM+dj dk mYys[k gS mlesa N dh x.kuk ds fy, le;kof/k esa o"kkZ _rq dks x.kuk esa 'kkfey ugha fd;k tkos A mDr vkns'k dh Nk;kizfr layXu gS A

¶66

rRlaca/k esa vkids }kjk izLrqr izdj.k flLVe fufonk dz- 26155 ds fufonkdkjksa ds izh&DokyhfQds'ku fu/kkZj.k gsrq vkgZrk dk x.kuk i=d dks lfefr }kjk ekU; djrs gq;s layXu dj ekuuh; mPp U;k;ky; NRrhlx<+ esa tokcnkok izLrqr djus vko';d dk;Zokgh gsrq izsf"kr gS A

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lgh@& izeq[k vfHk;ark yksd LokLF; ;kaf=dh foHkkx NRrhlx<+] vVy uxj

¶68

wpc 1459 of 2018

¶69

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i`-dz-@r-'kk-@iz-v-@yks-Lok-;ka-fo-@2018 vVy uxj] fnukad

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izfrfyfi %&

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1- fo'ks"k lfpo] N-x- 'kklu] yksd LokLF; ;kaf=dh foHkkx] ea=ky;] egkunh Hkou] vVy uxj] ftyk jk;iqj dh vksj lwpukFkZ izsf"kr A

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2- v/kh{k.k vfHk;ark] yksd LokLF; ;kaf=dh foHkkx] fcykliqj e.My fcykliqj dh vksj lwpukFkZ izsf"kr A

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3- dk;Zikyu vfHk;ark] yksd LokLF; ;kaf=dh [kaM dksjck dh vksj lwpukFkZ izsf"krA

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izeq[k vfHk;ark yksd LokLF; ;kaf=dh foHkkx NRrhlx<+] vVy uxj

¶76

From reading of that circular or clarification, we come to a conclusion that wherever the NIT talks of excluding the rainy season, then the component of "N" will be restricted to the period which has been fixed for completion of the contract in the NIT.

¶77

With the above interpretation which is required to be given to the meaning of 'excluding' and 'including' rainy season, if the respondent authorities have not calculated the bid value, then they would require to re-visit the same, which the Court is informed has been done and the details of calculation thereof emerges in additional return at page-12. The said calculation is also reproduced here below:

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CALCULATION

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(For System No.26155)

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Bid Capacity = 2 x A x (N/12) - C

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Wherein, A— Maximum value of work done in one year out of the last five years (with 10% surcharge per annum).

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N/12= Stipulated Time for completing the work awarded.

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C= Balance work in hand (with 20% surcharge per annum).

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2 x 813.90 x 1.10 x 1.10 x 1.10 x 1.10 x (6/12) - (507.39) x 1- (130.11 + 369.88) x 1.20 - (34.25) x 1.20 x 1.20

wpc 1459 of 2018

= 34.93 lakhs

=which is lesser than Probable Amount of Contract (PAC) ie Rs.123.26 lakhs.

¶89

Since the decision of the respondent authorities emerges from the method of calculation, no interference is required with the decision of the respondents.

¶90

In view of above, the argument made on behalf of learned senior Advocate that there is an obligation or requirement to add four months of rainy season even though the period of completion of the contract was six months is negated and the writ application is dismissed.

¶91

Sd/- Sd/- (Ajay Kumar Tripathi) (Parth Prateem Sahu) Chief Justice Judge

¶92

padma

Shree Mahamaya Constructions, v. State of Chhattisgarh

Case brief

What is this about?

What did the court decide?

Shree Mahamaya Constructions, v. State of Chhattisgarh

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

Coram

Case details

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