M/S Indian Rlys Cat.& ... vs M/S Doshion Veolia Water ...

3. The relevant facts very briefly are that M/s Indian Railway Catering and Tourism Corporation Limited (for short `IRCTC') planned to set up a packaged drinking water bottling plant at Palure, near Chennai, to produce drinking water under the brand name "Rail Neer" for railway passengers. In November 2008, the civil work for construction of the plant building was started. In February 2009, IRCTC published a tender notice for turnkey project for design, engineering, supply, installation, commissioning, operation and maintenance of the packaged drinking water bottling plant.

Pursuant to the tender notice, three tenderers, namely, M/s Thermax, M/s Ion Exchange (I) Ltd. and M/s. Doshion Veolia Water Solutions (P) Limited submitted their offers, but as the 3 offers were conditional, it was not possible to evaluate them and to decide the inter-se position of the three tenderers in an objective manner and therefore the Tender Committee of the IRCTC recommended for discharge of the tender and to invite fresh tenders after incorporating all the relevant revisions in the tender document to avoid anomalies. On 04.08.2009, a fresh tender notice was advertised by IRCTC and in response to this fresh tender notice M/s Ion Exchange (I) Limited (for short `Ion Exchange') and M/s. Doshion Veolia Water Solutions (P) Limited (for short `Doshion') submitted their technical and financial bids in separate sealed covers. The technical bids were opened on 24.08.2009 and both Ion Exchange and Doshion were informed on 26.08.2009 that their financial bids would be opened on 27.08.2009. When on 27.08.2009 the financial bids of Ion Exchange and Doshion were opened, it was found that Doshion had quoted a total price of Rs. 18.65 Crores, whereas Ion Exchange had quoted a total price of Rs. 18.66 Crores and had also quoted a discount of 1% on the quoted price. The result was that the net price quoted by Ion Exchange after deducting the discount of 1% 4 worked out to Rs.18,47,34,000/- as against the price of Rs.18,66,00,000/- quoted by Doshion.

5. On 21.12.2009, Doshion filed Writ Petition No. 27074 of 2009 in the Madras High Court praying for a writ of mandamus restraining IRCTC from taking any step in 8 furtherance of the tender. On 23.12.2009, learned Single Judge of the Madras High Court issued an interim injunction till 15.01.2010 and posted the matter for 05.01.2010. On 05.01.2010, IRCTC filed its detailed counter affidavit in reply to the writ petition. On 17.01.2010, Doshion filed Writ Petition No. 1059 of 2010 praying for quashing the letter of acceptance dated 17.12.2009 issued in favour of Ion Exchange. IRCTC and Ion Exchange filed their respective counter affidavits in reply to the Writ Petition and Doshion also filed its rejoinder affidavit. After hearing, the learned Single Judge of the Madras High Court dismissed the two Writ Petitions on 16.02.2010. On 08.04.2010, Doshion filed Writ Appeal Nos. 726-727 of 2010 before the Division Bench of the Madras High Court and on 12.04.2010 the Division Bench passed the order of status quo while admitting the appeals.

He urged that we should allow the appeal of Doshion on this point and direct IRCTC to award the contract to Doshion.

Over-writing of figures is not permitted.

1.12 Failure to comply with either of these conditions will render the tender void. No advice of any change in rate after opening of the tender will be entertained.

2.1 Vendor shall quote for lump sum price along with detailed break-up as per price schedule enclosed with this bid document.

The language of Clauses (i) and (ii) of the Note quoted above is clear that the prices quoted are to be lump sum inclusive of all duties and taxes etc. and the vendor should indicate total excise duty amount included in the prices for plants and equipments. The Note does not indicate the consequences that will follow if the vendor does not indicate the total excise 28 duty amount included in the prices for plants and equipments.

20. In the result, we set aside the impugned judgment and order of the Division Bench of the High Court and allow the appeals of IRCTC and Ion Exchange and dismiss the appeal of Doshion. There shall be no order as to costs.