M/S S.K. Traders, Birla Mandir Road, Patna vs. The Bihar State Text Book Corporation LTD.

We have heard the learned counsel for the petitioner and the learned Government Advocate.

The Bihar State Text Book Publishing Corporation Ltd. (for brevity “the respondent Corporation”) had floated a 2/6 tender for sale of damaged books, as is evident from Annexure P/3. The sale was to be carried out on an As Is Where Is basis and it involved the sale of damaged books in the unshredded form and shredded form. The successful tenderer was obliged to take delivery of the material as indicated in the Notice Inviting Tender (NIT) after bearing the charges for loading and transportation. Use of the sold material was also restricted in use for the preparation of pulp/lugdi and not for making envelops from the paper or book so sold or use as waste paper. The prohibitions as stipulated in the NIT were to be undertaken through Annexure F.

The NIT at Annexure E had the Price Bid Schedule (Financial Bid) wherein the tentative quantity in stock was indicated as 600MT. Two columns were separately provided for Category-1 and Category-2; respectively for the scrap books in original form and in the shredded form. The petitioner bid along with others and was conferred with the award. The petitioner was issued with Annexure P/2, which he failed to comply. The petitioner's contention is that though he had quoted separate bids for the shredded and unshredded scrap books, by Annexure P/2, only the contract for unshredded scrap books have been awarded to him. It is also argued that by 3/6 Annexure P/2, the petitioner has been directed to make payment of Rs.1,91,54,133/- which is much higher than the bid or quote of Rs.58,71,600/-.

The petitioner’s contention is, thus, two fold; (i) both the category of scrap books are to be awarded to the petitioner and (ii) the amounts directed to be deposited as per Annexure P/2 is far above the quote made by the petitioner.

Insofar as the first contention is concerned, the NIT specifically speaks of two categories of scrap books being tendered for the purpose of sale and requires the bidders to quote separate prices for the two categories, as is evident from Annexure-E which also specifies that the tentative quantity in stock is 600 metric tons. While Annexure-E provides two separate columns for Category-1 and 2; respectively the original and the shredded form of scrap books, there is no separate quantity referred to in the NIT. But we have to specifically notice that the NIT by Column 7 of the first page itself provides that ‘the physical site inspection shall be allowed by 13.11.2023 at 11:00 hours to 22.11.2023 at 16:00 hours’. Hence, it was open for the bidders to visit the site and examine the quantity tentatively intended to be sold on an As Is Where Is basis and ascertain the nature of the same. It is also pertinent that this is 4/6 not a one-time contract and the respondent Corporation intended such sale of books in both the categories on an As Is Where Is basis, as and when it is available.

As of now, the entire 600 metric ton, which was the tentative quantity indicated to be in stock; we have to presume is in the unshredded form. The petitioner having made separate quotes for both the shredded and unshredded material cannot now turn back and say that he will pick up the unshredded material only if he is delivered the shredded material also.

Insofar as the contention regarding the escalation of price, we have to first notice Annexure-E as per the NIT, as uploaded by the petitioner which is produced by the respondent Corporation in their counter affidavit and available in Annexure P/13. This is the bid document submitted online by the petitioner in which is contained Annexure-E. For Category-1 scrap books in the original form, the petitioner has quoted Rs.26,786 for one metric ton and Category-2, the shredded scrap books, the petitioner has quoted Rs.9,786 for one metric ton. The material value as is seen from Annexure P/2 is based on the quote of the petitioner @ Rs.26,786 for one metric ton, totaling Rs.1,60,71,600/-. The final quote asserted by the petitioner as 5/6 seen from the memorandum of writ petition is Rs.58,71,600/- which is for shredded scrap books as per the quote of the petitioner @ Rs.9,786/-. The petitioner having quoted under both the categories cannot now claim that the unshredded material available with the respondent Corporation should be delivered to him at the price quoted by him for the shredded material.

One other reason for the escalation of price to Rs.1,91,54,133/- as seen in Annexure P/2 is the addition of GST and TCS. We have to pertinently notice that NIT at Clause 10(a) indicates that the GST would be charged as per the GST Act and the rate must be included in the quoted price. But Annexure-E uploaded by the petitioner, which is the Price Bid Schedule at columns available at Category-1 and Category-2, specifically indicates that the price quoted is excluding GST. The petitioner, having quoted the price excluding the tax component, hence cannot have any contention regarding escalation of the bid amount, either on the basis of the price quoted for the shredded scrap books or on the addition made of tax.

The work order issued at Annexure P/2 is quite in consonance with the bid made by the petitioner. The petitioner having failed to deposit the amount and take delivery; the 6/6 respondent Corporation is justified in passing Annexure P/1 order.

We find absolutely no reason to interfere with either Annexure P/1 or Annexure P/2. The writ petition stands dismissed.