TaxTMI 
TaxTMI 
2015 (10) TMI 2727
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....dance with law in pursuance of the Notice Inviting Tender No. 21 dated 15.11.2012. The correctness of impugned judgment and order is challenged in this appeal as the Appellant-Corporation is aggrieved of the said judgment and order of the High Court. 3. The necessary brief facts are stated hereunder to appreciate the rival legal contentions urged on behalf of the parties: The Appellant is South Delhi Municipal Corporation and Respondents are registered civil contractors with the Appellant authorities and stated to have executed several works of the Corporation in the past. The Appellant-Corporation in its area invited tenders relating to 26 works to be executed against NIT No. 21/EE(MZ-WZ)-II/TC/2012-2013 dated 15.11.2012. The last date for bid preparation and its submission was 26.11.2012 upto 3.00 PM and the opening of the financial bids was scheduled on 28.11.2012, but the date was extended to 29.11.2012 as 28.11.2012 was declared holiday on account of 'Guru Nanak Birthday'. 4. On 29.11.2012, when the financial bids were opened, both the Respondents were declared successful being the lowest bidder in respect of 16 works. There were only five bidders who pa....
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....s taken by the Appellant-Corporation to serve the best interest of the Corporation with a bonafide intention. 10. He further contended that the High Court has erroneously ignored the fact that in the same financial year i.e. 2012-2013, the Appellant-Corporation issued 72 other work orders for similar works in the adjacent areas of the Corporation and all of them were issued at much lower rates than the rates quoted by both the Respondents. He urged that before the issuance of a particular contract, the internal system for financial check by the concerned department of the Appellant-Corporation has to justify the reasonableness of the rates quoted by the bidders by comparing the same with rates of other similar works awarded in the recent past by the Appellant-Corporation. 11. He further submitted that CVC Guidelines on the subject ensure that the Corporation gets the best price for execution of works at the same time ensuring transparency in awarding contracts in favour of successful bidders. It was further urged by him that the Appellant-Corporation had acted bonafide to get the best price for execution of works and to protect the public money, by cancelling the entire tende....
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....poration in the Corporation Area in the recent past is absolutely false and misleading. In this regard, she submitted that bids were invited by the Appellant-Corporation on the basis of tender rates fixed and the contractors are required to quote their rates below or above on percentage basis. After a bid is made by the contractor, the tender accepting Authority satisfies itself about the reasonableness of the rates offered by the contractor in his bid before acceptance of the tender in his name. At this stage the reasonableness of the rates are assessed on the basis of justified rates. Justification of rates offered by the bidders is prepared by the Appellant-Corporation on the basis of Delhi Schedule of Rates, 2007 and Delhi Schedule of Rates, 2012. In connection with the above she pointed out that Delhi Schedule of Rates, for each item of work prepared on the basis of CPWD rates on the basis of which works can be executed by the contractor and in case the rates on which works are allotted are very much below the said Delhi Schedule of Rates, there are chances of the quality of the work to be executed by the contractor getting compromised. She further submitted that the Appellant....
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....gendum dated 30.11.2012 was taken with a bonafide intention to serve the best interest of the Corporation ensuring that only a reasonable price is paid to the successful contractors for the works executed in the area as the money which it spends on getting such works done is public money. b) The High Court has not appreciated the fact that for the same financial year i.e. 2012-2013 the concerned department of the Appellant-Corporation has issued 72 other work orders for similar works in the adjacent areas of the Corporation and all of them were issued for much lower rates than the rates offered by both the Respondents. c) Further, the High Court has conveniently ignored the very relevant aspect of the case namely, that the Appellant-Corporation, before issuance of a particular tender notice, is required to satisfy itself about the reasonableness of the rates quoted by the bidders keeping in view the prevalent market rates in the Corporation Area. The internal system for financial check by the concerned department of the Appellant-Corporation justifies the reasonableness of the rates offered by the bidders by comparing them with the rates at which other....
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....onafide intention to get better and reasonable rates from the bidders for the execution of the works and not to show favouritism in favour of any bidder. g) The High Court has also failed to appreciate the relevant fact that the officials of the Appellant-Corporation made proper analysis about the rates quoted by both the Respondents as the same were higher than the usual market tendency and accordingly, they decided to cancel the entire tender process. 19. A careful reading of the impugned judgment and order would show that none of the aforesaid aspects have been borne in mind by the High Court and it has failed to appreciate the same in a proper perspective while exercising its judicial review power. The High Court has erred in quashing the decision of the Appellant-Corporation regarding the cancellation of its earlier tender notice and also the subsequent tender notice issued afresh by it on 13.12.2012 for the same works. 20. For the reasons stated above, the High Court has failed to see that the Appellant-Corporation adopted a fair and transparent method by inviting the bids for the re-tender notice issued by it. The High Court has not found any malafide intentio....