High Court Punjab-Haryana High Court

Traffic Media (India) Pvt. … vs State Of Punjab And Others on 18 February, 2009

Punjab-Haryana High Court
Traffic Media (India) Pvt. … vs State Of Punjab And Others on 18 February, 2009
Civil Writ Petition No.1901 of 2009                                           1


         IN THE HIGH COURT OF PUNJAB AND HARYANA AT
                         CHANDIGARH.


                                              Date of Decision:-18.2.2009


Traffic Media (India) Pvt. Limited
                                                              ---Petitioner

                                       Versus

State of Punjab and others
                                                             ---Respondents


CORAM:- HON'BLE MR.JUSTICE J.S.KHEHAR
        HON'BLE MR.JUSTICE NAWAB SINGH


Present:-     Mr.Vivek Kumar, Advocate for the petitioner.

              Mr.B.S.Dhillon, Assistant Advocate General, Punjab for
              respondent Nos.1 and 2.

              Mr.Arun Palli, Senior Advocate with Mr.I.S.Sidhu, Advocate
              and Mr.Kuldeep Singh, Joint Commissioner, Municipal
              Corporation, Ludhiana for respondent No.3.

              Mr.V.K.Sandhir, Advocate for respondent No.4.

J.S.KHEHAR, J. (ORAL)

Replication to the written statement filed on behalf of

respondent No.3 has been handed over to us in Court today. Copy thereof

has also been furnished to the learned counsel for respondent No.3. The

same is taken on record, subject to all just exceptions. A separate replication

to the written statement filed on behalf of respondent No.4 has also been

handed over to us in Court today. Copy thereof has also been furnished to

the learned counsel for respondent No.4. The same is also taken on record,

subject to all just exceptions.

During the course of hearing, it emerged that there were
Civil Writ Petition No.1901 of 2009 2

disputed questions of fact. According to learned counsel representing the

respondents, the tender submitted by the petitioner was defective for three

reasons. These defects have been noticed in paragraph 3 of the preliminary

submissions contained in the written statement filed on behalf of respondent

No.3. In order to demonstrate their fairness to this Court, learned counsel

for respondent No.3, i.e. Municipal Corporation, Ludhiana stated that the

Finance and Contract Committee of the Municipal Corporation, Ludhiana

had taken a decision not to accept any bid which was less than the bid

tendered by the petitioner, namely Rs.7.2 crores.

Despite the fact that the disputed questions of fact were

involved in the controversy raised by the petitioner, yet having examined

the averments made in the instant writ petition as also in the two

replications filed on behalf of the petitioner, we are of the view that there

was a “possibility” that the assertions made on behalf of the petitioner

“might” be truthful. It is therefore, that we enquired from the respondents

particulars of the highest bid, out of valid tenders submitted by the

interested parties on 23.1.2009. We were informed that the highest bid was

made by respondent No.4, who had agreed to pay a sum of Rs.5 crores.

We enquired from the learned counsel for the petitioner

whether the petitioner would be interested in hiking its bid amount, during

the process of negotiations, if he was allowed to participate in the same. In

response to our query, learned counsel for the petitioner having obtained

instructions told us, that the petitioner would comfortably enhance the bid

amount to Rs.7.6 crores, but with some difficulty he was willing to enhance

it even to Rs.8 crores, but not beyond that.

Learned counsel for respondent No.4, on instructions received,
Civil Writ Petition No.1901 of 2009 3

states that respondent No.4 is ready and willing to hike the bid amount

depicted in the tender submitted by respondent No.4 to Rs.8.05 crores (as

respondent No.3 i.e. Municipal Corporation, Ludhiana had taken a decision

not to accept the bid less than the bid of the petitioner in his tender namely

Rs.7.2 crores). This offer made by respondent No.4 to us in Court will be

deemed to be binding on respondent No.4, specially because the instant

petition is being disposed of on the basis of the undertaking given by

respondent No.4. In case respondent No.4 backs out from the amount

mentioned here-in-above namely Rs.8.05 crores, his earnest money shall

stand forfeited.

In view of the factual position noticed here-in-above, we are

satisfied and have arrived at a conclusion, that even if the tender documents

submitted by the petitioner were valid, the petitioner would not have been

favoured with the contract in question as he would not have been the

highest bidder even if an opportunity was available to him to compete for

the contract. As such, we are satisfied that no further action is called for in

the facts and circumstances of the present case.

Accordingly, the instant writ petition is disposed of with the

clear understanding that respondent No.4 has enhanced his bid amount to

Rs.8.05 crores. The bid of respondent No.4 and others who participate in the

process of negotiations (if any) will be disposed of in accordance with law.

Obviously, if no other tenderer makes an offer in excess of Rs.8.05 crores, it

will be open to the Municipal Corporation, Ludhiana to accept the bid of

respondent No.4.

Learned counsel for respondent No.3 states that it be clarified

(in view of the interim order passed by this Court on 5.2.2009) that it will be
Civil Writ Petition No.1901 of 2009 4

open to the Municipal Corporation, Ludhiana to finalize the matter in view

of the fact that the Finance and Contract Committee of the Municipal

Corporation, Ludhiana is scheduled to meet on 20.2.2009. Clarification

sought is the natural conclusion of the discussion noticed here-in-above, and

is accordingly accorded.

Disposed of in the aforesaid terms.




                                                        (J.S.Khehar)
                                                             Judge



                                                        (Nawab Singh)
18.2.2009                                                    Judge
AS