{"id":39647,"date":"2008-10-06T00:00:00","date_gmt":"2008-10-05T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/goodwill-vs-state-on-6-october-2008"},"modified":"2016-07-11T05:31:02","modified_gmt":"2016-07-11T00:01:02","slug":"goodwill-vs-state-on-6-october-2008","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/goodwill-vs-state-on-6-october-2008","title":{"rendered":"Goodwill vs State on 6 October, 2008"},"content":{"rendered":"<div class=\"docsource_main\">Gujarat High Court<\/div>\n<div class=\"doc_title\">Goodwill vs State on 6 October, 2008<\/div>\n<div class=\"doc_author\">Author: Mohit S. H.N.Devani,&amp;Nbsp;<\/div>\n<pre>   Gujarat High Court Case Information System \n\n  \n  \n    \n\n \n \n    \t      \n         \n\t    \n\t\t   Print\n\t\t\t\t          \n\n  \n\n\n\t \n\t \n\t \n\t \n\t \n\t \n\t \n\t\n\n\n \n\n\n\t \n\nSCA\/1182820\/2008\t 6\/ 6\tORDER \n \n \n\n\t\n\n \n\nIN\nTHE HIGH COURT OF GUJARAT AT AHMEDABAD\n \n\n \n\n\n \n\nSPECIAL\nCIVIL APPLICATION No. 11828 of 2008\n \n\n \n \n=========================================================\n\n\n \n\nGOODWILL\nADVANCE CONSTRUCTION CO. - Petitioner(s)\n \n\nVersus\n \n\nSTATE\nOF GUJARAT &amp; 4 - Respondent(s)\n \n\n========================================================\n \nAppearance : \nMR\nKG SUKHWANI for Petitioner(s) : 1, \nMR APURVA\nDAVE, AGP for Respondent(s) : 1, \nNOTICE SERVED BY DS for\nRespondent(s) : 1 -\n5. \n=========================================================\n\n\n \n\t  \n\t \n\t  \n\t\t \n\t\t\t \n\nCORAM\n\t\t\t: \n\t\t\t\n\t\t\n\t\t \n\t\t\t \n\nHONOURABLE\n\t\t\tMR. JUSTICE MOHIT S. SHAH\n\t\t\n\t\n\t \n\t\t \n\t\t \n\t\t\t \n\n             \n\t\t\tand\n\t\t\n\t\n\t \n\t\t \n\t\t \n\t\t\t \n\nHONOURABLE\n\t\t\tMS.JUSTICE H.N.DEVANI\n\t\t\n\t\n\n \n\n \n \n\n\n \n\nDate\n: 06\/10\/2008  \n \nORAL ORDER<\/pre>\n<p>(Per<br \/>\n: HONOURABLE MR. JUSTICE MOHIT S. SHAH)<\/p>\n<p>\t\tThe facts giving rise to this<br \/>\npetition under Article 226 of the Constitution are that the<br \/>\nrespondents invited tenders for constructing Canal Syphon Across<br \/>\nRiver Saraswati at Ch. 247.805 k.m. of Sujlam Suflam, Spreading Canal<br \/>\nat Kherava, Mehsana.  The tender conditions, inter alia, read as<br \/>\nunder :-\n<\/p>\n<p> 10.0\tEarnest Money Deposit<br \/>\n(EMD):\n<\/p>\n<p>(i)\tEarnest Money Deposit (EMD)<br \/>\nfor the work.  The Earnest money deposit shall be drawn in favour of<br \/>\nthe Executive Engineer, Sujalam Suflam Dn. No.2, Visnagar and shall<br \/>\nbe in the form of :\n<\/p>\n<p>Fixed deposit receipt, deposit at<br \/>\ncall receipt or account payee demand draft amounting to Rs.21.00 lacs<br \/>\nfrom any Nationalised Bank.\n<\/p>\n<p>(ii)\t Demand Draft for EMD &amp;<br \/>\nTender fee shall be submitted in electronic format only through<br \/>\nonline (by scanning) while uploading the bid.  This submission shall<br \/>\nmean that EMD &amp; tender fee are received for purpose of opening<br \/>\nthe bid.  Accordingly offer of those shall be opened whose EMD &amp;<br \/>\ntender fee is received electronically.  However for the purpose of<br \/>\nrealization of D.D. bidder shall send the D.D. in original through<br \/>\npersonally in sealed cover so as to reach to Executive Engineer,<br \/>\nSujalam Suflam Dn. No.2, Visnagar before date 18.09.2008 upto 18.00<br \/>\nhrs. Penaltative action for not submitting D.D. in original to E.E.<br \/>\nby bidder shall be initiated. D.D. for Exemption Certificate is not<br \/>\nnecessary.  However, Exemption Certificate shall have to be submitted<br \/>\nelectronically through online.\n<\/p>\n<p> Any documents in supporting of<br \/>\ntender bid shall be submitted in electronic format only through<br \/>\nonline (by scanning etc) &amp; hard copy will not be accepted<br \/>\nseparately.\n<\/p>\n<p>(iii)Cheque shall not be<br \/>\naccepted.\n<\/p>\n<p>(iv)\tValid EMD exemption<br \/>\ncertificate shall be accepted. &#8230; &#8230; &#8230; &#8230;\n<\/p>\n<p>2.\t\tThe petitioner herein<br \/>\nsubmitted EMD in the form of D.D. for a sum of Rs.21 lacs from a<br \/>\nnationalised bank.  In the present petition, the petitioner has<br \/>\nprayed for a direction to the respondents to open the bids of only<br \/>\nthose bidders who have furnished EMD of Rs.21 lacs by way of FDR or<br \/>\nDD of a nationalised bank and not to open price bids of bidders who<br \/>\nhave not furnished the EMD of Rs.21 lacs in the form of FDR or DD of<br \/>\na nationalised bank.\n<\/p>\n<p>3.\t\tWhile issuing notice on<br \/>\n23.09.2008, the respondents were directed not to open the price bids<br \/>\nof the bidders who had not paid or deposited the EMD.\n<\/p>\n<p>4.\t\tIn response to the notice,<br \/>\naffidavit-in-reply has been filed by the Superintending Engineer,<br \/>\nSujlam Suflam, Circle No.2, Kherava, Mehsana pointing out that the<br \/>\ntender conditions permitted furnishing EMD either in the form of DD<br \/>\nor FDR of a nationalised bank or valid EMD Exemption Certificate.  It<br \/>\nis further stated that at the pre-bidding conference held on<br \/>\n10.09.2008, a clarification was made that DD or FDR shall be of a<br \/>\nnationalised bank because the respondent authorities wanted to make<br \/>\nit clear that FDR or DD of a co-operative bank shall not be accepted.<br \/>\n It is specifically stated in the reply affidavit that the respondent<br \/>\nauthorities never intended to do away with sub-clause (iv) of Clause<br \/>\n10 stating that  valid EMD Exemption Certificate shall be<br \/>\naccepted.\n<\/p>\n<p>5.\t\tMr Sukhwani for the<br \/>\npetitioner has submitted that since sub-clause (i) specifically<br \/>\nprovided that FDR or DD shall be from any nationalised bank, there<br \/>\nwas no need for any clarification and that the clarification was<br \/>\nissued on 10.09.2008 only because one of the bidders had inquired<br \/>\nwhether EMD Exemption Certificate shall be accepted or not.\n<\/p>\n<p>6.\t\tThe minutes of the pre-bid<br \/>\nmeeting held on 10.09.2008 are produced at Annexure-B to the petition<br \/>\nand the relevant item reads as under :-\n<\/p>\n<p>Points<\/p>\n<p>Clarification<\/p>\n<p><span class=\"hidden_text\">(3)<\/span><\/p>\n<p>Provision<br \/>\n\t\t\t\tfor form of EMD MENTIONED A at differs.\n<\/p>\n<p><span class=\"hidden_text\">(3)<\/span><\/p>\n<p>FDR<br \/>\n\t\t\t\tor DD of Nationalised Bank.\n<\/p>\n<p>\t\tA bare perusal of the above<br \/>\nitem clearly indicates that there was no reference to EMD Exemption<br \/>\nCertificate and therefore, it can never be contended that the<br \/>\nrespondent authorities had done away with valid EMD Exemption<br \/>\nCertificate as one of the acceptable forms of EMD.\n<\/p>\n<p>7.\t\tThe learned counsel for the<br \/>\npetitioner, however, submitted that it would amount to discrimination<br \/>\nif the bidders submitting DDs or FDRs are required to give such EMD<br \/>\namounting to Rs.21 lacs, but Exemption Certificate can be obtained by<br \/>\ndepositing Rs.7.50 lacs.\n<\/p>\n<p>8.\t\tIt was open to the petitioner<br \/>\nalso to submit a valid EMD Exemption Certificate.  The petitioner<br \/>\nhaving himself furnished EMD in the form of DD of Rs.21 lacs from a<br \/>\nnationalised bank cannot now be permitted to make any grievance<br \/>\nagainst acceptance of tenders with valid EMD Exemption Certificate as<br \/>\nper sub-clause (iv) Clause 10 of the tender conditions.\n<\/p>\n<p>9.\t\tMr Sukhwani for the<br \/>\npetitioner relied on the decision of a learned Single Judge of this<br \/>\nCourt in Senior<br \/>\nRegional Manager, FCI Vs. Sunil Agencies, Kutch, 2003(2) GLR 1020<br \/>\nin support of the contention that there has to be strict compliance<br \/>\nwith the tender conditions and that the variation is not permissible<br \/>\neven in case of the lowest bidder.\n<\/p>\n<p>10.\t\tThat was a case where the<br \/>\ntender conditions required DD of a scheduled bank and the concerned<br \/>\nlowest bidder had submitted DD of a non-scheduled bank.\n<\/p>\n<p>\t\tIn the facts and circumstances<br \/>\nof the present case as indicated earlier, the tender conditions did<br \/>\npermit acceptance of valid EMD Exemption Certificate and therefore,<br \/>\nthe  decision  cited  on  behalf  of  the petitioner does not advance<br \/>\nthe petitioner&#8217;s case any further.\n<\/p>\n<p>11.\t\tOn the contrary, in M\/s.\n<\/p>\n<p>G.J. Fernandez Vs. State of Karnataka, AIR 1990 SC 958,<br \/>\nthe Apex Court has held that the rule of invalidation of grant of<br \/>\ncontract on account of relaxation of pre-qualification does not<br \/>\nreadily apply where attempt of applicant is to gain immunity from<br \/>\ncompetition.\n<\/p>\n<p>\t\tIn the first place, the<br \/>\npetitioner has not made out any case of relaxation as discussed<br \/>\nabove.  Secondly, what the petitioner is seeking by invoking writ<br \/>\njurisdiction of this Court is to gain immunity from competition with<br \/>\nthose who submitted valid EMD Exemption Certificates.  As pointed out<br \/>\nby Mr Apurva Dave, learned AGP for respondent No.1, out of 10<br \/>\ntenderers, 8 parties have submitted EMD in the form of valid EMD<br \/>\nExemption Certificate and therefore, if the petitioner&#8217;s case is<br \/>\naccepted, there will be only two bidders left in the fray.  In view<br \/>\nof this factual position also, it is obvious that the petitioner is<br \/>\nseeking to gain immunity from competition with as many as 8 other<br \/>\nbidders.\n<\/p>\n<p>12.\t\tIn view of the above<br \/>\ndiscussion, we do not find any merit in the petition and the petition<br \/>\nis, therefore, summarily dismissed.\n<\/p>\n<p>\t\tEx-parte ad-interim relief<br \/>\ngranted earlier stands vacated.\n<\/p>\n<p>\t\t\t\t\t\t\t(MOHIT S. SHAH, J.)<\/p>\n<p>\t\t\t\t\t\t\t(HARSHA N.DEVANI, J.)<\/p>\n<p>mrpandya*<\/p>\n<p>\t\t   \u00a0\u00a0\u00a0<\/p>\n<p>\t\t   Top<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Gujarat High Court Goodwill vs State on 6 October, 2008 Author: Mohit S. H.N.Devani,&amp;Nbsp; Gujarat High Court Case Information System Print SCA\/1182820\/2008 6\/ 6 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD SPECIAL CIVIL APPLICATION No. 11828 of 2008 ========================================================= GOODWILL ADVANCE CONSTRUCTION CO. &#8211; Petitioner(s) Versus STATE OF GUJARAT &amp; 4 &#8211; Respondent(s) [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[16,8],"tags":[],"class_list":["post-39647","post","type-post","status-publish","format-standard","hentry","category-gujarat-high-court","category-high-court"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Goodwill vs State on 6 October, 2008 - Free Judgements of Supreme Court &amp; 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