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M/S Pradepatha Transport Company vs The Singareni Collieries Company Ltd

High Court Of Telangana|19 December, 2014
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JUDGMENT / ORDER

The Hon’ble Sri Justice C.V. Nagarjuna Reddy Writ Petition No.39064 of 2014 Dated: 19.12.2014 Between:
M/s.Pradepatha Transport Company, rep. by its Managing Partner I.Thirupathi ..
Petitioner and The Singareni Collieries Company Ltd., Rep. by its Chairman & MD, Kothagudem, Khammam District and another.
..
Respondents Counsel for the petitioner: Mr.T.Koteshwara Prasad Counsel for the respondents: Mr.T.S.Pattabhi Rama Rao Rao, Co., Ltd.
for Mr.Nandigama Krishna SC for Singareni Collieries The court made the following:
Order:
This Writ Petition is filed for a Mandamus to declare the action of the respondents in issuing the tender notice bearing Ref.No.BP114 O 0160/2014- 15, dated 02-12-2014, for coal transportation from Goleti 1A incline to SRP CHP, without finalizing the tender B.P.No.114 0 0015, as illegal and arbitrary.
The petitioner is an existing transport contractor in respect of the above-mentioned incline of respondent No.1. On the expiry of the petitioner’s contract, a fresh tender notification was issued in response to which the petitioner has submitted its tender. As the petitioner turned out to be the lowest tenderer, negotiations were held with it by the officials of the respondents on 14-10-2014 at 10.30 a.m. A perusal of the copy of the minutes of the said negotiations filed by the petitioner shows that the Management, having felt that the rates quoted by the petitioner were on high side, requested the petitioner to match the rate for Rs.3.64 ps., per Ton/Km. However, for the reasons given out by the petitioner, it has agreed to reduce the rate by 0.04 ps., from Rs.4.23 ps., and insisted to pay Rs.4.19 ps., per Ton/km. The said meeting was concluded with the observation by the representatives of the respondents that the petitioner was informed that the matter would be examined. Evidently, not being satisfied with the rate offered by the petitioner, the respondents have issued a fresh tender notice. Feeling aggrieved by the same, the petitioner filed this Writ Petition.
After hearing Mr.T.Koteshwara Prasad, learned Counsel for the petitioner, and Mr.T.S.Pattabhi Rama Rao, learned Counsel representing Mr.Nandigama Krishna Rao, learned Standing Counsel for respondent No.1- Singareni Collieries Company Limited, this Court is of the opinion that the respondents have not committed any illegality in calling for fresh tenders.
From a perusal of the record, it is evident that the petitioner’s offer was considered by the respondents and that the petitioner has declined to reduce the rate to Rs.3.64 per ton/km as requested by the respondents.
The petitioner being the lowest tenderer does not have an indefeasible right to the award of contract unless its offer is accepted by the respondents. Evidently, negotiations between the petitioner and the respondents have failed leading to issuance of a fresh tender notice. Being a public Corporation, it is not only the responsibility but also the sacred duty of respondent No.1 to safeguard the public interests by ensuring that the prices paid by it are highly competitive. Therefore, this Court does not find any illegality or arbitrariness in the action of the respondents in deciding to issue fresh tenders. No right of the petitioner is infringed by the respondents, by not accepting its offer. Hence, I do not find any merit in this Writ Petition and the same is liable to be dismissed.
At this stage, it is stated by the learned Counsel for the petitioner that the Earnest Money Deposit (EMD) paid by the petitioner in connection with the previous tender notice is still with the respondents and that the petitioner may be permitted to participate in the fresh tender process without insisting for payment of the EMD afresh. The learned Standing Counsel for the respondents submitted that the petitioner can, accordingly, participate in the fresh tender process.
In view of the same, the respondents are directed to allow the petitioner to participate in the fresh tender process with the EMD earlier paid by it.
Subject to the liberty given to the petitioner as above, the Writ Petition is dismissed.
As a sequel to dismissal of the Writ Petition, WPMP.No.48963 of 2014, filed by the petitioner for interim relief, is disposed of as infructuous.
(C.V.Nagarjuna Reddy, J) Dt: 19th December, 2014
LUR
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Title

M/S Pradepatha Transport Company vs The Singareni Collieries Company Ltd

Court

High Court Of Telangana

JudgmentDate
19 December, 2014
Judges
  • C V Nagarjuna Reddy
Advocates
  • Mr T Koteshwara Prasad