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Hanumant Construction Private Limited v. The State Of Bihar and Ors.

Patna HC26 Nov 2013CWJC/11185/2013

Case brief

AI extract

What is this about?

The Court disposed of a petition concerning a cancelled tender for canal renovation. It directed the authorities to negotiate with the three successful bidders having equal rates, allowing allotment based on negotiation rather than mandating a fresh tender process.

What did the court decide?

Directions to respondents to negotiate with the three successful tenderers having equal rates, allowing agreement and allotment based on the lowest offer; liberty to proceed with fresh tender if negot

Hanumant Construction Private Limited Vs The… — Public Procurement and Tenders | Patna HC (2013)

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IN THE HIGH COURT OF JUDICATURE AT PATNA Civil Writ Jurisdiction Case No.11185 of 2013

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====================================================== Hanumant Construction Private Limited having its registered office at Prabhani Complex, Civil Lines, Raipur through Its AGM, Project & Authorised Representative Shri Priyaranjan Sharma son of Shri Baleshwar Sharma, resident of Village- Babhana, Ward No. 2 of Jehanabad, Municipal Area, P .O- Babhana, District- Jehanabad. .... .... Petitioner Versus 1. The State of Bihar through Its Principal Secretary, Department of Water Resources, Government of Bihar, Patna, Sachivalaya P.S., Patna. 2. Engineer-in-Chief (North), Water Resources Department, Government of Bihar, Patna, Sachivalaya P.S., Patna. 3. Chief Engineer, Planning & Monitoring, Water Resources Department, Government of Bihar, Patna, Sachivalaya P.S., Patna. 4. Departmental Tender Committee through its Chairman, Water Resources Department, Govt. of Bihar, Patna., Sachivalaya, P.S- District - Patna. 5. Chief Engineer, Water Resources Department, Gaya, Gaya Town P.S., Gaya. 6. Superintending Engineer, Water Ways Circle, Ghoshi, Jehanabad Ghosi P.S., Jehanabad. 7. Superintending Engineer, Planning and Monitoring, Water Resources Department, Government of Bihar, Patna, Sachivalaya P.S., Patna. 8. The Executive Engineer, Water Ways Division, Udera Asthan, Jehanabad, Uderasthan, P.S. Jehanabad. .... .... Respondents ====================================================== Appearance : For the Petitioner : Mr. Rama Kant Sharma, Sr. Advocate Mr. Tuhin Shankar, Advocate For the Respondents : Mr. J.P. Karn, AAG 4 Mr. A.K. Dubey, AC to AAG4 ====================================================== CORAM: HONOURABLE MR. JUSTICE JAYANANDAN SINGH ORAL ORDER

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3 26-11-2013 The case of petitioner is that tender process was held for the work of Renovation of Structures and Modernization and Lining of Telhara Branch Canal from 0.00 KM to 17.850 KM. Four contractors submitted their tender papers. Out of four, three qualified for opening of the financial bids and rate of all the three was found to be equal as they quoted rate 15% below the Bill of

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Patna High Court CWJC No.11185 of 2013 (3) dt.26-11-2013

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Quantity. Hence, lottery was held in which petitioner was declared successful. Thus, tender process was complete and only agreement had to be entered into and work had to be allotted to the petitioner. At this stage, respondents came to know about the letter of the Finance Department dated 11.04.2013 by which limit of 15% below the bill of quantity had been removed. Hence, the Tender Evaluation Committee decided to cancel the tender process and issue a fresh NIT.

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Learned senior counsel for the petitioner submits that since this letter was issued later on, the same should not be applied in this tender notice. He also submits that since petitioner had been declared successful bidder, pursuant to the lottery, respondents should have entered into an agreement with the petitioner on the rate quoted in the tender notice.

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This Court finds that the Tender Committee took notice of the said letter of the Vigilance Department only for the reason that, in view of the removal of limit of 15%, tenderers may quote rates below that also. Thus, the Government may be a gainer in the matter. This reason appearing from the decision of the Tender Committee does not appear to be unreasonable.

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However, this Court is of the opinion that instead of starting fresh tender process, it would have been appropriate for

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Patna High Court CWJC No.11185 of 2013 (3) dt.26-11-2013

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the respondents to enter into negotiation with all the successful tenderers whose financial bids had been opened and their rate had been found equal. In negotiation, whoever may have agreed for lower rate, respondents could allot work to that tenderer by executing an agreement with him.

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This writ application is, accordingly, disposed of with a direction to the respondents that instead of initiating a fresh tender process by issuing fresh NIT, they shall enter into a negotiation with all the three tenderers whose financial bids and rate quoted have been found equal. The respondents shall be at liberty to accept the lowest offer and enter into agreement and allot the work on that basis. In case none of the three tenderers agree to enter into negotiation, respondents shall be at liberty to proceed with fresh tender process.

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B.T/-

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(Jayanandan Singh, J)

Hanumant Construction Private Limited v. The State Of Bihar and Ors.

Case brief

What is this about?

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Hanumant Construction Private Limited v. The State Of Bihar and Ors.

Case brief

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What did the court decide?

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