TaxTMI 
TaxTMI 
2019 (12) TMI 1655
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....ition inter alia seeking for a writ of certiorari to quash Ext. P14 to the extent of rearranging the work done by the petitioner at his risk and cost and also for a writ of mandamus directing the respondents to release the Earnest Money Deposit (EMD) amount of Rs. 22,60,000/-. 3. The short facts of the case are as under: Petitioner who is a registered contractor of the Public Works Department (PWD) was awarded with the work of improving the Rajakkad-Rajakumari-Poopara road to riding quality. The approximate value of work was Rs. 11,29,06,076/-. He had submitted an EMD of Rs. 22,60,000/-. The petitioner quoted Rs. 7,99,99,990/- which was 29.14% below the estimated cost. Since the rate was below 25% of the estimated cost, Chief En....
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....rom the subject work and to refund the EMD. Yet another letter was sent to the Superintending Engineer on 19/8/17 which is marked as Ext. P11. Petitioner also approached this Court by filing WP(C) No. 28087/2017 wherein direction had been issued to the Superintending Engineer, PWD to consider Ext. P11 representation. However, pursuant to the said direction, the Superintending Engineer of PWD terminated the contract, after rejecting his representation, Ext. P11 and it was mentioned that the work will be rearranged at his risk and cost. Though petitioner submitted Ext. P14 letter dated 3/10/2017 to the Chief Engineer, informing him that he is ready and willing to execute the agreement and start the work with 14% tax amount, nothing else was h....
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....so stated that the ambiguity is created due to discrepancies in the preparation of tender documents. 6. Learned Single Judge while considering the aforesaid claim observed that in so far as Clause 13.3 in the bidding documents including invitation of bid clearly indicates that the price shall include all duties, taxes and other levies, it cannot be stated that the petitioner was not aware that he had to quote the price bid with tax. Being an A class contractor of PWD, petitioner is well versed with the manner in which tenders are to be submitted and therefore, there is justification on the part of the respondents to re-arrange the work and forfeit the EMD. 7. Learned counsel for the appellant while impugning the aforesaid judgment sub....
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....ned. The fact that there was an error which occurred in the bid document is not disputed because when the petitioner was given Ext. P9, after accepting his tender, the word "without taxes" in the total amount was conspicuously deleted, whereas the price remained the same. Petitioner was called upon to execute the agreement based on Ext. P9. Therefore, it is clear that there is ambiguity in the tender (BoQ) as a result of which petitioner had given a quote without taxes. But when he was called upon to submit an undertaking as per Ext. P6 format, the format included the value inclusive of all taxes, levies statutory fees etc at which time, he had objected to the same stating that his rate did not include any taxes. But without considering the....
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.... and there is no absolute bar for entertaining a writ petition even if the same arises out of a contractual obligation and/or involves some disputed questions of fact. 11. This is also a case in which the only question to be considered is whether the action of the respondents in treating that there was a valid acceptance of the tender by the petitioner/appellant is justified or not. 12. Learned Government Pleader however raised two contentions. First is on the basis of clause 13.3 of the invitation to bid. It is true that in the bidding documents which forms part of the notice inviting tender, it was specifically mentioned that the quoted price should contain all taxes, duties and other levies. But in this case what was intended by PW....
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....n in the BoQ, he is expected to give the rate for each item and he was called upon to give the rate "without taxes", he could only give a rate without taxes. His experience in the field and the approach of the PWD authorities are irrelevant matters in considering a specific contract. Therefore, it could be seen that the acceptance of the offer made by the petitioner was not in terms with the tender. His quoted price was without taxes and he cannot be called upon to undertake the work inclusive of all taxes. Under such circumstances, we have no hesitation to hold that the 3rd respondent was not justified in terminating the contract at the risk and cost of the contractor. It is also settled law that when an offer is made in a tender, acceptan....