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Patna High Court - Orders

Jmd Services Private Limited vs The State Of Bihar on 18 September, 2024

Bench: Chief Justice, Partha Sarthy

                      IN THE HIGH COURT OF JUDICATURE AT PATNA
                              Civil Writ Jurisdiction Case No.14167 of 2024
                 ======================================================
                 JMD Services Private Limited

                                                                                ... ... Petitioner/s
                                                   Versus
                 The State of Bihar & Ors.

                                                           ... ... Respondent/s
                 ======================================================
                 Appearance :
                 For the Petitioner/s   :     Mr. Y.V.Giri, Sr. Advocate
                                              Ms. Shrishti Singh, Advocate
                 For the Respondent/s   :     Mr. Lalit Kishore, Sr. Advocate
                                              Mr. Vikash Kumar, Advocate
                                              Mr. Ayush Kumar, Advocate
                                              Mr. Kanishka Shankar, Advocate
                 ======================================================
                 CORAM: HONOURABLE THE CHIEF JUSTICE
                         and
                         HONOURABLE MR. JUSTICE PARTHA SARTHY
                                       ORAL ORDER

                 (Per: HONOURABLE THE CHIEF JUSTICE)

2   18-09-2024

The question arising in the above case is as to whether there could be cancellation of tender even after the agreement was entered into. A Notice Inviting Tender for sourcing manpower to various Health Institutions of the State was published as per Annexure-P/1. One of the conditions was that the agencies who apply under the NIT should source the manpower only from agencies having a license under the Private Security Agencies (Regulation) Act, 2005. Clause 7(b) indicates that there is no requirement for an agency applying under the NIT to have a license under the Act but only insists on Patna High Court CWJC No.14167 of 2024(2) dt.18-09-2024 2/3 the manpower being sourced from such agency having license; which is subsequent to the award of the contract.

2. Ten agencies qualified in the tender and the agreement was entered into by the Civil Surgeons of the respective districts with the Agencies allotted to such districts by the Corporation, as per the NIT. Later, the State Government issued a directive pointing out that the clause with respect to sourcing manpower from the agencies having license under the Act was faulty in so far as only agencies having license under the Act should be permitted to apply. Two of the ten successful bidders did not have a license under the Act of 2005. In such circumstance, the entire tender was directed to be cancelled by the Government and a fresh tender is now contemplated.

3. It is also submitted by the Corporation that as of now the Civil Surgeons have been asked to carry on the work with the ten agencies so that the work is not hampered till a fresh tender is finalized.

4. We are of the opinion that as of now the fresh tender should not be proceeded by the Corporation and we stay the further proceedings.

5. The order of cancellation of the agreement dated 06.09.2024 (Annexure-P/14) shall also stand stayed. Patna High Court CWJC No.14167 of 2024(2) dt.18-09-2024 3/3

6. The Corporation shall file a counter affidavit within two weeks. The matter shall be heard on that date.

7. Post on 05.10.2024.

(K. Vinod Chandran, CJ) ( Partha Sarthy, J) Saurabh/-

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