Eagle Consultancy Services vs. The State Of Andhra Pradesh

Held

The Court held that the petitioner's quoted bid amount of Rs.17,700/- per head per month was less than the minimum prescribed amount of Rs.20,576/- per head per month as stipulated in tender condition No.5(14) and Schedule-A of the price bid. This constituted a violation of the tender terms and conditions. Consequently, the petitioner's financial bid was not approved, and the show cause notice was issued appropriately. The Court found no grounds to grant relief to the petitioner to proceed with the cancelled tender. However, since the entire tender was cancelled to facilitate a fresh process, no prejudice would be caused to the petitioner, who was free to participate again if eligible. The Court also directed the respondent to ensure necessary precautions are taken for portal functionality in future tenders.

Facts

The petitioner, M/s Eagle Consultancy Services, participated in an e-procurement tender issued by Respondent No. 3 for providing watchmen cum helpers. The petitioner received a show cause notice dated 02.11.2023, alleging violation of minimum wage norms as per G.O.Ms.No.7 and causing financial loss. The petitioner submitted a reply on 17.11.2023. Subsequently, the Earnest Money Deposit (EMD) was returned, and the tender was cancelled. The petitioner filed W.P.No.1005 of 2024 challenging the show cause notice and non-consideration of their explanation, and W.P.No.5666 of 2024 challenging the cancellation of the tender notification.

Key Issues

1. Whether the petitioner's quoted bid amount violated the terms and conditions of the e-procurement tender, specifically regarding the minimum wages to be paid as per G.O.Ms.No.7 and Schedule-A of the price bid. Petitioner's Contention: The petitioner participated in the bid and submitted a reply to the show cause notice. The EMD was returned, and the tender was cancelled without proper consideration of their explanation. The petitioner also raised issues regarding portal functionality during bid submission. Respondent's Contention: The petitioner quoted Rs.17,700/- per head per month, which was less than the minimum prescribed amount of Rs.20,576/- per head per month (inclusive of Basic Pay, EPF, ESI, GST, and Taxable Income) as per tender condition No.5(14) and Schedule-A. This violation led to the financial bid not being approved, the issuance of the show cause notice, and the subsequent cancellation of the tender to initiate a fresh process.