{"id":64270,"date":"2005-02-22T00:00:00","date_gmt":"2005-02-21T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/laxmi-sales-corporation-vs-ms-bolangir-trading-co-ors-on-22-february-2005"},"modified":"2019-01-13T22:03:30","modified_gmt":"2019-01-13T16:33:30","slug":"laxmi-sales-corporation-vs-ms-bolangir-trading-co-ors-on-22-february-2005","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/laxmi-sales-corporation-vs-ms-bolangir-trading-co-ors-on-22-february-2005","title":{"rendered":"Laxmi Sales Corporation vs M\/S Bolangir Trading Co. &amp; Ors on 22 February, 2005"},"content":{"rendered":"<div class=\"docsource_main\">Supreme Court of India<\/div>\n<div class=\"doc_title\">Laxmi Sales Corporation vs M\/S Bolangir Trading Co. &amp; Ors on 22 February, 2005<\/div>\n<div class=\"doc_author\">Author: S Hegde<\/div>\n<div class=\"doc_bench\">Bench: N. Santosh Hegde, B.P. Singh, S. B. Sinha<\/div>\n<pre>           CASE NO.:\nAppeal (civil)  1348 of 2005\n\nPETITIONER:\nLaxmi Sales Corporation \t\t\t\n\nRESPONDENT:\nM\/s Bolangir Trading Co. &amp; Ors.\t         \n\nDATE OF JUDGMENT: 22\/02\/2005\n\nBENCH:\nN. Santosh Hegde,B.P. Singh &amp; S. B. Sinha\n\nJUDGMENT:\n<\/pre>\n<p>J U D G M E N T<br \/>\n(arising out of SLP (c) No. 3723 of 2004)<br \/>\nWITH<br \/>\nC.A. NO. 1349 OF 2005<br \/>\n(arising out of SLP (C) No. 4775 of 2004)<\/p>\n<p>SANTOSH HEGDE, J.\n<\/p>\n<p>\tDelay condoned.\n<\/p>\n<p>\tLeave granted.\n<\/p>\n<p>\tThese two appeals arise out of the civil Writ Petition No.<br \/>\n3592 of 2003 filed before the High Court of Orissa at Cuttack.  One<br \/>\nappeal arises out of an order  dated 22.8.2003 made by the High<br \/>\nCourt in the main writ petition  (c) No. 3592\/03).  The connected<br \/>\nappeal arises out of an order made on 22.12.2003 by the High Court<br \/>\nin Review Petition No. 127 of 2003.\n<\/p>\n<p>\tWrit Petition (c) No. 3592 of 2003 was filed by the<br \/>\ncontesting respondent herein viz. respondent No.3. In the said writ<br \/>\npetition the said respondent sought for an order quashing the tender<br \/>\nprocess held for Bolangir  Bhawanipatna territory whereby the<br \/>\nsecond respondent herein had  rejected the tender of  the said<br \/>\nrespondent herein for providing pre-paid telephone services in the<br \/>\ndistrict of Bolangir  Bhawanipatna.  It was the contention of the<br \/>\nsaid respondent before the  High Court that though it was fully<br \/>\nqualified to be considered and awarded the above said contract, the<br \/>\nsame was rejected  on erroneous grounds by the second respondent<br \/>\nherein and the contract was awarded in favour of the appellant.<br \/>\n\tThe High Court while entertaining the said writ petition<br \/>\nallowed the same and held that the rejection of the offer made by<br \/>\nthe second respondent herein was arbitrary and unfair hence,<br \/>\ncancelled the contract awarded in favour of the appellant herein and<br \/>\ndirected a fresh tender in accordance with law.<br \/>\n\tBeing aggrieved by the said order setting aside the contract<br \/>\nin favour of the appellant herein preferred Special Leave Petition\n<\/p>\n<p>(c) No. 17828\/03 primarily urging that the certificate of the<br \/>\nChartered Accountant produced by the said respondent was not a<br \/>\ngenuine one and the High Court  had relied upon the said forged<br \/>\ncertificate  of the Chartered Accountant and allowed the writ<br \/>\npetition.  The said Special Leave Petition came to be withdrawn<br \/>\nwith a view to approach the High Court by way of a review petition<br \/>\nto bring to its notice that the certificate of  the Chartered<br \/>\nAccountant produced by the said respondent on which the High<br \/>\nCourt had relied upon, was not a genuine certificate.\n<\/p>\n<p>\tAfter the withdrawal of the above said Special Leave Petition<br \/>\nthe appellant approached the High Court by way of a review<br \/>\npetition alleging that the Chartered Accountant&#8217;s certificate<br \/>\npurportedly issued by M\/s. Romesh Kumar &amp; Co.  was not a<br \/>\ngenuine one hence, the court was misled to pass the original order<br \/>\nallowing the writ petition.  The High Court, however, dismissed the<br \/>\nreview petition observing:\n<\/p>\n<p>&#8220;Thus, the basis of the judgment under<br \/>\nreview is not only that the writ petitioner had<br \/>\nfurnished the report\/certificate of the Chartered<br \/>\nAccountant the genuineness of which is under<br \/>\nchallenge in this review application but also<br \/>\nthat the entire tender process stood vitiated on<br \/>\naccount of absence of clear stipulation in the<br \/>\nadvertisement or the notice inviting tenders.&#8221;\n<\/p>\n<p>\tHaving been unsuccessful in the review petition the appellant<br \/>\nis now before us in these two appeals challenging both the orders<br \/>\nmade in the main writ petition as well as in the review petition by<br \/>\nthe High Court.\n<\/p>\n<p>\tMr. P.N. Misra, senior counsel appearing for the appellant<br \/>\nsubmitted that the respondent department rightly rejected the tender<br \/>\nof the respondent  for want of mandatory information as required in<br \/>\nthe tender form as well as in the instructions issued therein.<br \/>\nAccording to the learned counsel, following are the mandatory<br \/>\nrequirements which the respondent failed to produce which<br \/>\ncompelled the respondent department to reject its offer:\n<\/p>\n<p>a)\tAll supporting documents wherever applicable in Annexures<br \/>\nI &amp; J should be furnished;\n<\/p>\n<p>b)\tTurnover of the firm\/organisation over the last two years<br \/>\n(with supporting documents);\n<\/p>\n<p>c)\tWork experience of the last 2 years with full details (the<br \/>\nsupporting documents to be submitted)\n<\/p>\n<p>d)\tProof of Turn Over (Latest P&amp;L A\/c duly certified by a<br \/>\nChartered Accountant)\n<\/p>\n<p>e)\tThe checklist, annexures-I &amp; J along with all desired<br \/>\ndocuments and EMD should be furnished.\n<\/p>\n<p>Learned counsel for the appellant also submitted that the<br \/>\ndepartment  in its counter has clearly stated that the tender of the<br \/>\nrespondent was rejected for lack of information in the tender form<br \/>\nwhich was the mandatory requirement for accepting the tender<br \/>\namongst which latest profit and loss account duly certified by a<br \/>\nChartered Accountant evidencing the annual turnover of Rs. 25<br \/>\nlakhs was necessary.  The department in the said counter had also<br \/>\nstated that the  respondent along with the tender document had filed<br \/>\nonly the purported certificate of the Chartered Accountant and its<br \/>\nsales tax turnover whereas the profit and loss account was never<br \/>\nproduced as certified along with the tender form and was filed for<br \/>\nthe first time before the High Court in the writ petition, therefore,<br \/>\nwhen the tender of the said respondent was considered there was no<br \/>\nmaterial to find out what exactly was the profit and loss account for<br \/>\nthe year 2001-02 evidencing sale turnover as required in Appendix-<br \/>\nC, Annexure-J and Checklist Clause 6 (c) of the tender documents.<br \/>\nIt is the contention of the learned counsel for the appellant as also<br \/>\nof the learned counsel for the department that because of the non-<br \/>\nsupply of this material information the offer made by the<br \/>\nrespondent had to be rejected.   The learned counsel then pointed<br \/>\nout from the judgment of the High Court that the High Court came<br \/>\nto the conclusion in the writ petition that none of the above<br \/>\ndocuments was required to be mandatorily furnished, and specially<br \/>\nthe audited profit and loss account for the relevant year. The rules<br \/>\nand conditions  subject to which the bids were invited did not<br \/>\nanywhere stipulate  that a tender would be rejected if audited profit<br \/>\nand loss account in support of the eligible turnover of Rs. 25 lakhs<br \/>\nwas not furnished by the tenderer.\n<\/p>\n<p>The argument of the learned counsel for the respondent was<br \/>\nin tune with the finding of the High Court inasmuch as that the<br \/>\nabsence of the documents which was made the basis for rejection of<br \/>\nthe tender were really not called for in the advertisement and as a<br \/>\nmatter of fact the turnover of the said respondent for the relevant<br \/>\nyear  was more than the minimum stipulated in the tender form<br \/>\nhence, the same was produced  before the High Court to establish<br \/>\nits claim for acceptance of tender.\n<\/p>\n<p>We have heard the argument of the learned counsel for the<br \/>\nparties and perused the record.  In our opinion, the High Court  was<br \/>\nnot justified in coming to the conclusion that production of the<br \/>\ndocuments mentioned herein above along with the tender form was<br \/>\nnot mandatory and the High Court was also not justified in coming<br \/>\nto the conclusion that neither the rules and conditions governing the<br \/>\ntender  nor the advertisement calling for tender  made it mandatory<br \/>\nfor an intending tenderer  to produce those documents and specially<br \/>\nproof of turnover for the relevant year 2001-02.  We have already<br \/>\nnoticed from the various conditions in the tender form and<br \/>\nannexures annexed thereto that production of supporting documents<br \/>\nwherever applicable in Annexure I &amp; J was one of the requirements<br \/>\nof the tender and Annexure J specifically required at Sl. No. 7 the<br \/>\nproof of turnover of the firm over the last two relevant years with<br \/>\nsupporting documents.  The same annexure also required the<br \/>\ntenderer to produce proof of work experience for the last two years<br \/>\nwith full details  and supporting documents and the checklist had<br \/>\nspecifically mentioned that the production of proof of turnover with<br \/>\nlatest profit and loss account dully certified by a Chartered<br \/>\nAccountant  was a mandatory requirement.\n<\/p>\n<p>In this background we are unable to accept the finding of the<br \/>\nHigh Court that there was no mandatory requirement of the<br \/>\nproduction of the above documents.  As a matter of fact  the High<br \/>\nCourt erred in coming to the conclusion in para 6 of its judgment in<br \/>\nthe writ petition that  &#8220;the advertisement in Annexure-1 to the writ<br \/>\npetition only states that for Bolangir-Bhawanipatna, a tenderer must<br \/>\nhave a turnover  of Rs. 25 lakhs, but it does not anywhere  state that<br \/>\naudited profit and loss account has to be submitted by a tenderer<br \/>\nshowing a turnover of Rs. 25 lakhs&#8221;.  This finding of fact as noticed<br \/>\nby us herein above is contrary to records and is an error apparent on<br \/>\nface of the record.\n<\/p>\n<p>Learned counsel for the respondent  submitted that he along<br \/>\nwith the writ petition produced sufficient material to establish his<br \/>\nturnover, which the High Court correctly accepted, but the learned<br \/>\ncounsel for the appellant, in our opinion rightly, contended that<br \/>\nthese turnovers really did not reflect the turnover of the relevant<br \/>\nyear. It is also relevant to note the fact that the allegation, that<br \/>\ncertification by a Chartered Accountant is not  genuine,  has not<br \/>\nbeen rebutted by the concerned respondent.\n<\/p>\n<p>In this factual background, we think the High Court was not<br \/>\njustified in allowing the writ petition of respondent No.1 Bolangir<br \/>\nTrading Company in regard to the grant of contract pertaining to<br \/>\nthe  district of Bolangir  Bhawanipatna.\n<\/p>\n<p>Since we have come to the conclusion that the High Court<br \/>\nhas misread the material on record and has committed factual error<br \/>\nbased on which the relief is granted, we do not think it necessary to<br \/>\ngo into the various judgments relied upon by the High Court.\n<\/p>\n<p>For the reasons stated above these appeals succeed. The<br \/>\nimpugned orders of the court below are set aside and the writ<br \/>\npetition ( c) No. 3592 of 2003 is dismissed.\n<\/p>\n<p>\tIn view of our above order, there is no need to make any<br \/>\nseparate order in the appeal arising out of the review order of the<br \/>\nHigh Court.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Supreme Court of India Laxmi Sales Corporation vs M\/S Bolangir Trading Co. &amp; Ors on 22 February, 2005 Author: S Hegde Bench: N. Santosh Hegde, B.P. Singh, S. B. Sinha CASE NO.: Appeal (civil) 1348 of 2005 PETITIONER: Laxmi Sales Corporation RESPONDENT: M\/s Bolangir Trading Co. &amp; Ors. DATE OF JUDGMENT: 22\/02\/2005 BENCH: N. Santosh [&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":[30],"tags":[],"class_list":["post-64270","post","type-post","status-publish","format-standard","hentry","category-supreme-court-of-india"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Laxmi Sales Corporation vs M\/S Bolangir Trading Co. &amp; Ors on 22 February, 2005 - Free Judgements of Supreme Court &amp; High Court | Legal India<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.legalindia.com\/judgments\/laxmi-sales-corporation-vs-ms-bolangir-trading-co-ors-on-22-february-2005\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Laxmi Sales Corporation vs M\/S Bolangir Trading Co. &amp; 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