High Court Kerala High Court

C.M.Kunju Mohamad vs The General Manager on 28 October, 2009

Kerala High Court
C.M.Kunju Mohamad vs The General Manager on 28 October, 2009
       

  

  

 
 
  IN THE HIGH COURT OF KERALA AT ERNAKULAM

WP(C).No. 29240 of 2009(Y)


1. C.M.KUNJU MOHAMAD, CONTRACTOR, NETOOR,
                      ...  Petitioner

                        Vs



1. THE GENERAL MANAGER,
                       ...       Respondent

2. THE DEPUTY GENERAL MANAGER (L.P.G.),

3. THE SYSTEM & SECURITY SERVICES,

4. V.K.RAJU, CONTRACTOR, (HAULAGE, CARTAGE,

5. THE CENTRAL VIGILANCE COMMISSION,

                For Petitioner  :SRI.MOHAN C.MENON

                For Respondent  :SRI.T.P.M.IBRAHIM KHAN,ASST.SOLICITOR

The Hon'ble MR. Justice P.N.RAVINDRAN

 Dated :28/10/2009

 O R D E R

P.N.RAVINDRAN,J.

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W.P.(C) No.29240 of 2009 – Y

—————————————-
Dated 28th October, 2009

Judgment

Heard Sri.Mohan C. Menon, the learned counsel appearing

for the petitioner, Sri.E.K.Nandakumar, the learned standing

counsel appearing for respondents 1 and 2 and Sri.T.P.M.

Ibrahim Khan, the learned Assistant Solicitor General of India

for the 5th respondent.

2. The Indian Oil Corporation Limited invited tenders for

carrying out the work of loading and unloading of cylinders and

for haulage, cartage, clearing and miscellaneous work at their

Calicut plant. In the tender terms and conditions, it is

stipulated that the rates are to be quoted in figures and words

on percentage basis in the price bid. The tenderers were also

cautioned that if the rates are not quoted in words, such offers

will be summarily rejected. It was also stated that tenders

which do not meet the tender conditions are liable to be

rejected.

W.P.(C) No.29240/2009 2

3. Pursuant to the tender notice, the petitioner submitted

that his credential bid and price bid. In the price bid, instead of

quoting the percentage rate offered by him in words and

figures, the petitioner quoted the rate only in figures. This writ

petition is filed contending that as the petitioner’s bid is the

lowest, it ought to have been accepted. It is conceded at the

Bar that shortly after this writ petition was filed, the petitioner’s

bid was rejected on the ground that the percentage rate

quoted by him in the price bid was not mentioned in figures

and words.

4. A copy of the price bid submitted by the petitioner is

produced as Ext.R1 (a) along with the statement filed on behalf

of respondents 1 and 2. Relying on the terms and conditions of

the tender notice, respondents 1 and 2 have stated that the

petitioner’s bid was not in accordance with the tender

conditions and therefore, it was rejected for the reason that the

rate quoted by him was only in figures and not both in words

and figures. The respondents also contend that the stipulation

in the tender notice is that the percentage rate shall be both in

words and figures.

W.P.(C) No.29240/2009 3

5. I have considered the submissions made at the Bar by

the learned counsel appearing on either side. Paragraphs 7

and 8 of the general guidelines forming part of the tender

conditions read as follows:

“7. Rates are to be quoted in figures and words on
percentage basis in the Price Bid (inclusive of all taxes
excluding Service Tax) only under Minus ( – ) % column,
or Plus ( + ) % column.

If rates are quoted under both Plus ( + ) % column
and Minus ( – )% column, offer would be summarily
rejected.

When there is a difference between the rates in
figures and words, the rate quoted in words shall be
accepted.

Service tax paid by the contractor shall be
reimbursed on actual basis subject to production of proof
of payment in originals.

8. If rates are not quoted in words, offer would be
summarily rejected.”

It is thus evident from the general conditions of the tender that

the rate has to be quoted not only in figures but also in words.

It is also stated that if rates are not quoted in words, the offer

will be summarily rejected. In my opinion, the petitioner who

did not admittedly satisfy the tender conditions by quoting in

his price bid, the rate offered by him in words cannot be heard

W.P.(C) No.29240/2009 4

to contend that his bid should be entertained and accepted. It

is to rule out the possibility of any tampering with the rate

quoted in the price bid that the official respondents have

insisted that the rate should be quoted not only in words but

also in figures. This is all the more important for the reason

that the rates can be quoted below the minimum prescribed

and also above the minimum prescribed. In other words, if in

the petitioner’s tender, the rate quoted is minus 5.11

percentage above the tender rate, it is possible for someone

else who is interested in disqualifying the petitioner to convert

it as + 5.11 percentage above the tender rate. It is to avoid

such a possibility that it is insisted that the rates should be

quoted both in words and in figures. The petitioner’s bid did

not admittedly satisfy the said stipulation. I am therefore

persuaded to agree with the official respondents that the

petitioner’s bid was liable to be rejected on that short ground.

Further, if official respondents are given the discretion to

condone such lapses, it can lead to abuse or misuse of such

discretionary power. In a given case, an erring officer of the

Indian Oil Corporation can permit an otherwise invalid tender to

W.P.(C) No.29240/2009 5

be corrected and made valid. That will vitiate the tendering

process. Such a stipulation cannot, in my opinion, be watered

down to enable persons like the petitioner who do not have

submitted their bid in accordance with the tender conditions to

participate in the selection process. I therefore find no reason

to entertain this writ petition.

6. It is brought to my notice that as regards the haulage,

cartage, clearing and miscellaneous work, the respondents are

likely to re-tender the work. I make it clear that

notwithstanding the dismissal of this writ petition, it will be

open to the petitioner to participate in the re-tender if the work

of haulage, cartage, clearing and miscellaneous work is re-

tendered by the Corporation and nothing contained in this

judgment will stand in the way of the petitioner from

participating in such re-tender, if any.

The writ petition is dismissed with the above observation.

P.N.RAVINDRAN
Judge

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