Explore the insightful legal analysis provided by the High Court in a recent case involving a tender award dispute. Gain valuable insights into the court’s interpretation of procurement regulations and its impact on the government’s financial interests. Follow along as we delve into the nuances of this case and uncover the complexities of tendering processes and contractual obligations.
Facts
- The High Court has held that the award of the tender to M/s. ASVA Power Systems India Pvt. Ltd. is illegal.
- The High Court determined that the tender of the writ petitioner should have been considered as the lowest tender.
- The High Court estimated that the loss to the Government is approximately 63 lakhs due to the award of the tender to M/s. ASVA Power Systems India Pvt. Ltd.
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Arguments
- Mr. Aman Lekhi, Additional Solicitor General, argues for the urgency of 74 videoscopes needed by the Department.
- He requests a stay on the High Court’s order, pointing out that the equipment is ready for installation.
- Shri K.V. Viswanathan supports Mr. Lekhi, emphasizing that his client’s tender was the lowest as it included all customs charges.
- He mentions the error of the High Court in disallowing landing charges to be added to M/s. Almighty Techserv’s bid.
- In contrast, Mr. Gopal Sankaranarayanan asserts the correctness of the High Court’s judgment, calling it wholly incorrect.
- The respondent argues that there is no error in the case.
- The respondent also claims that the successful bidder made false statements in the High Court and should not be granted discretionary relief.
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Analysis
- The tender in question was floated in the year 2018.
- The High Court has cancelled the tender and ordered re-tender.
- Fresh tendering may cause a delay in procuring the videoscopes needed urgently by the customs authority.
- The tender has not been awarded to M/s. Almighty Techserv.
- Fresh tender for supply of videoscopes may be floated
- Uncertainty regarding whether Government will gain or lose monetarily
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Decision
- If M/s. ASVA Power Systems India Pvt. Ltd. insists on full payment now, there will be no interim stay and the Department will have to float a new tender.
- Public interest requires the Government to proceed with procuring the videoscopes from M/s. ASVA Power Systems India Pvt. Ltd. as permitted by the court.
- Interim relief is granted with the condition that Rs. 63 lakhs will be deducted from the payment to M/s. ASVA Power Systems India Pvt. Ltd.
- Further orders regarding the deducted amount will be made after detailed hearings at the time of the final hearing.
Case Title: COMMISSIONER DIRECTORATE OF LOGISTICS Vs. M/S ALMIGHTY TECHSERV (2020 INSC 236)
Case Number: SLP(C) No.-005472 / 2020
