Disposed

Valsalam T v. State of Kerala

Kerala HC18 Jan 2023WP(C)/730/2023

Case brief

AI extract

What is this about?

Petitioners who were low bidders challenged a Panchayath's decision to cancel tenders due to lack of funds. The Court held that the Panchayath is within its powers to cancel tenders if funds are unavailable and such a decision is not subject to judicial review.

What did the court decide?

Writ petition is closed reserving the petitioner's liberty to participate in the re-tender, if any conducted by the panchayath.

Valsalam T Vs State of Kerala — Public Procurement and Tenders | Kerala HC (2023)

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IN THE HIGH COURT OF KERALA AT ERNAKULAM

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PRESENT

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THE HONOURABLE MR.JUSTICE V.G.ARUN

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WEDNESDAY, THE 18^TH DAY OF JANUARY 2023 / 28TH POUSHA, 1944

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WP(C) NO. 730 OF 2023

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PETITIONERS:

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1 VALSALAM T AGED 48 YEARS S/O THAPASIMUTHU (LATE), THUMBAKKAL (H), UCHAKKADA P.O, KULATHOOR, THIRUVANANTHAPURAM PIN - 695506

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2 WILFERR RAJ D AGED 42 YEARS S/O DEVADASAN (LATE), MYLADY (H), KULATHOOR, UCHAKKADA P.O, THIRUVANANTHAPURAM, PIN - 695506

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3 DAS J AGED 62 YEARS S/O JOSHEWA (LATE), MATHA SADHANAM, KULATHOOR, UCHAKKADA P.O, THIRUVANANTHAPURAM, PIN - 695506

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4 SATYADAS J AGED 65 YEARS S/O JOSHWA (LATE), PUNARTHAM (H), ATTUPURAM, KULATHOOR, UCHAKKADA P.O, THIRUVANANTHAPURAM, PIN - 695506

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5 KIRANDAS Y.L AGED 30 YEARS S/O YESUDAS, LYLA BHAVAN, KIDARAKUZHY, URAMVILA, VENKADAMBU P.O, THIRUVANANTHAPURAM, PIN - 695506 BY ADVS. J.JULIAN XAVIER FIROZ K.ROBIN ROY JOSEPH ANIES MATHEW ANJANA RAM NIRMAL KURIEN EAPEN

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RESPONDENTS:

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1 STATE OF KERALA REP. BY ITS CHIEF SECRETARY,

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WP(C) NO. 730 OF 2023

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SECRETARIAT, THIRUVANANTHAPURAM PIN - 695001

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2 SECRETARY FINANCE (INDUSTRIES AND PW-B) DEPARTMENT, SECRETARIAT, THIRUVANANTHAPURAM, PIN - 695001

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3 SECRETARY LOCAL SELF GOVERNMENT DEPARTMENT SECRETARIAT, THIRUVANANTHAPURAM , PIN - 695001

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4 ASSISTANT ENGINEER LID & EW, KULATHOOR GRAMA PANCHAYAT, KULATHOOR, UCHAKKADA P.O, THIRUVANANTHAPURAM, PIN - 695506

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5 KULATHOOR GRAMA PANCHAYAT REP. BY ITS SECRETARY, KULATHOOR, UCHAKKADA P.O, THIRUVANANTHAPURAM, PIN - 695506

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OTHER PRESENT:

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GP SRI P S APPU

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VINAYAKUMARI.I (S.C)

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THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 18.01.2023, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

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WP(C) NO. 730 OF 2023

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JUDGMENT

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Dated this the 18^th day of January, 2023

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The petitioners are contractors who had participated in

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different tenders floated by the 5^th respondent Panchayath and declared as the lowest bidders. The petitioner's grievance is that in spite of they being the lowest bidders, the panchayath decided to cancel the tender. Hence this writ petition is filed.

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Learned Counsel for the petitioners submitted that the rates quoted by the petitioners being within 10% of PAC, the 5^th respondent panchayath was bound to accept the tenders in view of Ext.P2 Government Order, as per which panchayaths are authorised to accept tenders up to a limit of 10% above PAC.

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Learned Standing Counsel for the Panchayath submitted that, the panchayath committee had decided to cancel the tender, as the panchayath does not have funds to do the works at the rates quoted by the petitioners.

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No doubt, Ext.P2 government order authorises

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panchayaths to accept tenders upto 10% above PAC. But that is no reason for this Court to compel the 5^th respondent panchayath to accept the bids submitted by the petitioners, the panchayath

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WP(C) NO. 730 OF 2023

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having decided to cancel the tenders due to paucity of funds. It is well within the powers of the panchayath to decide whether to go on with the tender or to cancel it. Such a decision cannot be made the subject matter of judicial review.

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The writ petition is hence closed, reserving the petitioner's liberty to participate in the re-tender, if any conducted by the panchayath.

Sd/-

V.G.ARUN JUDGE

SAAP

WP(C) NO. 730 OF 2023

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APPENDIX OF WP(C) 730/2023

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PETITIONER EXHIBITS

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Exhibit P1	TRUE COPY OF THE G.O (P) NO.375/2015 DATED 24.08.2015 ISSUED BY THE 2ND RESPONDENT
Exhibit P2	TRUE COPY OF THE G.O (RT.) NO.2497/2022/LSGD DATED 18.10.2022 ISSUED BY THE 3RD RESPONDENT
Exhibit P3	TRUE COPY OF THE G.O (RT.) NO.204/2022 DATED 20.11.2022 ISSUED BY THE 2ND RESPONDENT
Exhibit P4	TRUE COPY OF THE NOTICE INVITING TENDER FOR THE WORKS VIZ. ANNUAL PLAN - SO 129/2022-23 KULATHOOR GP- ATTUPURAM KADAVIL ROAD RETARING - GENERAL CIVIL WORK DATED 26.10.2022
Exhibit P5	TRUE COPY OF THE NOTICE INVITING TENDER DATED 26.10.2022 ISSUED BY THE 4TH RESPONDENT
Exhibit P6	TRUE COPY OF THE CHART OF SIX WORKS SHOWING ESTIMATE PAC AND THE AMOUNT QUOTED BY L1S
Exhibit P7	TRUE COPY OF THE LETTER DATED 16.12.2022 ISSUED BY THE 4TH RESPONDENT INTIMATING THE CANCELLATION OF TWO WORKS FOR WHICH 1ST PETITIONER HAS SUBMITTED E-TENDER
Exhibit P7(a)	TRUE COPY OF THE LETTER DATED 16.12.2022 ISSUED BY THE 4TH RESPONDENT INTIMATING THE CANCELLATION OF WORK FOR WHICH 2ND PETITIONER HAS SUBMITTED E-TENDER
Exhibit P7 (b)	TRUE COPY OF THE LETTER DATED 16.12.2022 ISSUED BY THE 4TH RESPONDENT INTIMATING THE CANCELLATION OF WORK FOR WHICH 3RD PETITIONER HAS SUBMITTED E-TENDER
Exhibit P7 (c)	TRUE COPY OF THE LETTER DATED 16.12.2022 ISSUED BY THE 4TH RESPONDENT INTIMATING

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WP(C) NO. 730 OF 2023

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THE CANCELLATION OF WORK FOR WHICH 4TH PETITIONER HAS SUBMITTED E-TENDER

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Exhibit P7 (d) TRUE COPY OF THE LETTER DATED 16.12.2022 ISSUED BY THE 4TH RESPONDENT INTIMATING THE CANCELLATION OF WORK FOR WHICH 5TH PETITIONER HAS SUBMITTED E-TENDER Exhibit P8 TRUE COPY OF THE DECISION NO.2 (2) DATED 13.12.2022 ISSUED BY THE 5TH RESPONDENT

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//True Copy// PA to Judge

Valsalam T v. State of Kerala

Case brief

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Valsalam T v. State of Kerala

Case brief

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