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2009 (2) TMI 743

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..... if acting as an appellate authority over the decision of the University which was beyond the jurisdiction of the Court. The High Court was not justified in accepting the contentions of respondent no. 1 and thereby upsetting the entire process of inviting tenders by interfering with the terms and conditions of inviting the tenders and by rescheduling and directing the process of re-tendering, which would only cause further delay and would increase the burden on the exchequer of the University. - CIVIL APPEAL N. 1127 OF 2009 - - - Dated:- 20-2-2009 - PASAYAT, ARIJIT AND SHARMA, MUKUNDAKAM, JJ. JUDGMENT Dr. Mukundakam Sharma, J. 1. Leave Granted. 2. In the present appeal what is under consideration is the construction of Veterinary College building at Navsari Agricultural University, Gujarat (hereinafter referred to as University ). Since construction of the aforesaid building was required to be done immediately, University released the grant which was going to lapse on 31.03.2009. The University issued a Tender Notice No. 20/2008-09 on 21.11.2008 inviting tenders for construction of Veterinary College building at Navsari Agricultural University, Gujarat. The tender n .....

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..... g for quashing the decision of respondent no. 2 University dated 8.12.2008 considering the respondent no. 1 as disqualified from participating in the tender selection process for the construction of Veterinary College building at Navsari Agricultural University, Gujarat. 5. The said writ petition was placed before the Division Bench and after looking into the records and after hearing the parties the Division Bench held that the University acted arbitrarily in requiring the pre-qualification documents to be sent physically so as to reach the University by R.P.A.D./Speed Post by 27.11.2008, inasmuch as it meant that the contractor had to send pre-qualification documents by the aforesaid mode by dispatching the same latest by 25.11.2008. Consequently, the writ petition was allowed and the decision of the respondent no. 2 University dated 10.12.2008 accepting the bid of the appellant was quashed and set aside with a further direction that the University shall issue a fresh tender notice with the same terms and conditions but it would also provide seven days time for submitting the pre-qualification documents after the end date for downloading the bid documents. 6. Being aggrie .....

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..... e estimated contract value of Rs. 8.40 crores, is concerned, three parties applied and submitted their tenders and on scrutiny it was found that one out of the three did not satisfy the requirements, and therefore, his tender was rightly rejected by the parties. So far as the tenders of the appellant and respondent no. 1 are concerned, ongoing through the record we find that the respondent no. 1 never specifically raised the issue regarding paucity and shortage of time as one of the grounds for challenging the decision of the University. The only stand that was taken by respondent no. 1 for late submission of his pre-qualification documents is that he came to know about the tenders only on 27.11.2008 as he was undertaking various construction works, and therefore, could not submit all the required pre-qualification documents in time stipulated in the notice inviting tenders. The aforesaid stand makes it crystal clear that respondent no. 1 was prevented in submitting the required documents in time due to his personal difficulty and not for the time schedule attached to the notice inviting tenders. That was also not one of his grounds taken specifically in the writ petition at any .....

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..... be expedited and the same should not be stalled in between. The process which is suggested by the High Court in its Judgment and Order if allowed to be gone through the same would mean prolonged delay in the completion of the project. The project is time bound and money must be utilized by 31st March, 2009. The process of re-tendering and allotment of fresh tender would mean delay and would also be time consuming. 12. The Supreme Court in number of decisions has held that there is a vital distinction between administrative and contractual law. In Puravankara Projects Ltd. vs. Hotel Venus International and Others, reported in (2007) 10 SCC 33, in which one of us, namely, Justice Arijit Pasayat was a party, it was held as follows: tender terms are contractual and it is the privilege of the Government which invites its tenders and courts do not have jurisdiction to judge as to how the tender terms should be framed. By observing that there was an implied term which was not there in the tender, and postponing the time by which the bank guarantee had to be furnished, in essence the High Court directed modification of a vital term of the contract . It further held that th .....

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..... ilities or goods . 13. The prime consideration on which the High Court set aside the award of contract in favour of the appellant is that if the bid of respondent no. 1 was considered in the tender process there would have been saving of public money. However, that would not in any manner justify in going through once again the same tender process, which is always time consuming. Any delay in awarding the contract would only mean increase in the cost of expenditure for cost of construction would go up with the passage of time. 14. In W.B. State Electricity Board vs. Patel Engineering Co. Ltd. and Others, reported in (2001) 2 SCC 451, this Court while considering the issue with regard to the process of tender held: where bidders who fulfil prequalification alone are invited to bid, adherence to the instructions cannot be given a go-by by branding it as a pedantic approach, otherwise it will encourage and provide scope for discrimination, arbitrariness and favouritism which are totally opposed to the rule of law and constitutional values . It was also held: the very purpose of issuing rules/instructions is to ensure their enforcement lest the rule of law should be a casualty .....

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