C.D.Antony Jacob vs. Kerala State Housing Board
Held
The Court directed the 2nd respondent to consider the petitioner's representation (Ext.P17) to carry out the work at a reduced rate (5% above PAC), taking into account a similar work awarded (Ext.P16). It also ordered that the work should not be awarded to anyone else, and no further proceedings should be taken pursuant to the cancellation order (Ext.P10) in the interim.
Facts
The petitioner was awarded a government construction contract after being the L1 bidder and subsequently deposited performance guarantee and stamp papers. The respondents then cancelled the award, citing a mistake in the Notice Inviting Tender (NIT) where the Project Approved Cost (PAC) was erroneously shown inclusive of 12% GST, contrary to NIT conditions.
Key Issues
The key legal issue was the legality and arbitrariness of cancelling a awarded contract after the contractor had furnished performance guarantees, due to an alleged error in the tender's PAC calculation regarding GST inclusion.
AI-generated summary — verify with the full judgment below
WP(C).No.6321 OF 2021(M) 1 IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE SMT. JUSTICE P.V.ASHA THURSDAY, THE 08TH DAY OF APRIL 2021 / 18TH CHAITHRA, 1943 WP(C).No.6321 OF 2021(M) PETITIONER/S: C.D.ANTONY JACOB AGED 47 YEARS S/O. DOMINIC C.A, GOVERNMENT CONTRACTOR, CHITTATTUTHARA HOUSE, PALLURUTHY P.O, KOCHI 682 006 BY ADVS. SRI.BABU JOSEPH KURUVATHAZHA SRI.M.G.SREEJITH SMT.K.S.ARCHANA RESPONDENT/S: 1 KERALA STATE HOUSING BOARD THAMPANOOR MASJID ROAD, NEAR INDIAN INSTITUTE OF EMERGENCY MEDICAL, SANTHI NAGAR, PULIMOODU, THIRUVANANTHAPURAM 695 001, REPRESENTED BY ITS SECRETARY 2 CHIEF ENGINEER, KERALA STATE HOUSING BOARD, THAMPANOOR MASJID ROAD, NEAR INDIAN INSTITUTE OF EMERGENCY MEDICAL, SANTHI NAGAR, PULIMOODU, THIRUVANANTHAPURAM 695 001 3 THE EXECUTIVE ENGINEER, KERALA STATE HOUSING BOARD, THRISSUR DIVISION, AYYANTHOLE, THRISSUR 680 003 SHRI.K.DENNY DEVASSY, SC, K.S.H.B. THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 08.04.2021, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
WP(C).No.6321 OF 2021(M) 2 JUDGMENT Dated this the 8th day of April 2021 The petitioner is aggrieved by the cancellation of the award of contract as per Ext.P10 order d
The judgment continues below.
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