West Bengal State Electricity Board vs Patel Engineering Co. Ltd. & Ors on 15 January, 2001
In this regard, the judgment of the Supreme Court
in West Bengal State Electricity Board (supra) with specific reference to
paragraph 32 is clear. There, the Supreme Court held that the principle of
awarding contract to the lowest tenderer applies when all things are
equal. In this case, the respondent No.5 was declared 'un-responsive' at
the first instance and as held by the learned Single Judge and by this
Court also, the subsequent declaration of the respondent No.5 as
'responsive' was without jurisdiction on account of same having violated
the terms of the ITB. However, during the course of the case before the
learned Single Judge, it became clear that the Financial Bid of the
respondent No.5 was less by Rs.19.05 Crore in comparison to the
petitioner's bid. Therefore, the second part of the learned Single Judge's
order is modified to the extent that instead of directing the Union
Territory to retender, this Court considers it sufficient to give the
discretion to the official respondents whether they feel the need to
13 LPA Nos. 89 & 94 of 2024
retender in the light of the wide disparity in the bid amounts between the
respondent No.5 and the petitioner, which is a substantial amount of
money, in exercise of its discretionary powers under clause 28.1 of the
SBD as the official respondents have the power to do so as no valid
contract was entered with the petitioner. Therefore, as no rights were
created which are legally justiciable, the Union Territory on its own can
consider retendering afresh in exercise of its powers under clause 28.1.
Reserving this discretion of the official respondents, LPA No. 89/2024
stands disposed of.