Excelsior Correspondent
Srinagar, July 2: Observing that allotting works and contracts to the citizens has to be rational, the High Court has quashed the order of cancellation of contract and blacklisting the petitioner-firm by the J&K Medical Supplies Corporation Ltd (JKMSCL) by recording that the act of Corporation against the contractor company cannot stand with test of law.
The communication and order was issued by JKMSCL whereby the contract in favour of the Petitioner firm-International Institute of Professional Studies (IIPS) was cancelled and the company was blacklisted without giving opportunity of being heard to the petitioner-company.
The petitioner-firm as stated before the court is involved in activities of providing manpower facilities of trained professionals in the discipline of computer related software activities and the trained manpower is supplied to both the Government agencies as well as Semi-Government agencies operating within the Union Territory of Jammu and Kashmir.
It is in terms of tender Notice No. of 2020 issued by Managing Director JKMSCL, quotations were invited from different manpower supplying agencies for supply of different categories of manpower, including Assistant Programmer, Data Entry Operators and other supporting staff for working in Jammu and Kashmir Medical Supplies Corporation Ltd.
The Petitioner-firm, being eligible in all respects, responded to the tender notice by submitting all the relevant documents. The Respondent Corporation accepted the bid of the Petitioner and same was found to have qualified in the technical evaluation process amongst other eligible bidders.
The Purchase Committee of the Respondent-Corporation, approved the rates as offered by the Petitioner-firm and the letter of intent was issued in favour of the firm, whereby the firm was asked to submit an undertaking in the shape of an Affidavit assuring therein the successful performance of the contract before the issuance of the formal contract in his favour.
Court has been informed that the condition of submitting undertaking was in excess of the terms and conditions provided in the original tender notice, as such, the Petitioner approached the Respondent-Corporation with a representation seeking clarification on the excess condition(s) imposed by them in the letter of intent.
Instead of clarifying the entire issue that had crept in the contents of the letter of intent issued by the MD-JKMSCL, he has issued the impugned communication followed by impugned order in terms whereof not only the contract that was successfully allotted in favour or the Petitioner stands cancelled, but the Petitioner- firm has also been blacklisted for a period of two years resulting into approaching of court by the petitioner-company to seek indulgence in the matter.
Court after hearing the parties at length said the decision to allot the works or enter into contract with citizens has to be rational, non arbitrary and reasonable and the decision-making process of the Government or Government agencies in contractual matters has to be reasonable and conforming to the requirements of fundamental rights of the persons guaranteed under Articles 14 and 19 of the Constitution of India.
In the case on hand, Justice Ali Mohd Magrey said, the Respondent-Corporation has cancelled the contract in favour of the Petitioner-firm and blacklisted it on the ground that it did not submit the undertaking in the manner required.
Court said prior to issuance of impugned communication and order, the Respondent-Corporation did not provide any opportunity of being heard to the Petitioner-firm. This course of action adopted by the Respondent Corporation Court said, has visited the Petitioner-firm with major punishment, and for such major punishment, as per procedure, fair and due opportunity of hearing had to be offered to the Petitioner-firm by associating him in the entire process.
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