M/S Tathagat Tour And Travels vs. The State Of Bihar
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M/s Tathagat Tour and Travels (Petitioner) filed a writ petition against the State of Bihar and the Bodhgaya Temple Management Committee (Respondents). The Petitioner was awarded a contract for booking tour packages for foreign cultural troupes after participating in a tender process. The Petitioner submitted invoices totaling Rs. 43,71,675/- plus 5% GST. An initial payment of Rs. 35,00,000/- was made, followed by Rs. 1,96,996/-, leaving a balance of Rs. 6,37,336/-. The Petitioner also claimed reimbursement of Rs. 2,18,650/- for COVID-19 testing expenses incurred for inbound troupes. Despite reminders, the Respondents had not paid the outstanding amounts. The Respondents, in their counter-affidavit, acknowledged the contract and completion of work but asserted that the payable amount was Rs. 37,34,339/- based on a breakdown of services, and suggested the Petitioner approach a Civil Court.
Held
The Court held that the Respondent-authority could not unilaterally reduce the amount payable to the Petitioner after accepting their lowest bid and approving the tender amount of Rs. 43,71,675/- plus 5% GST. The Court found that the letter dated 06.01.2023 clearly indicated the approval of the Petitioner's quoted amount. The Court reasoned that once a tender is accepted and the amount approved, the authority cannot reduce it on subsequent pretexts, especially when the work has been completed and there are no complaints. The Court found the breakdown of costs by the authorities to be illegal. Furthermore, the Court held that there were no disputed questions of fact, as the documents clearly illuminated the issue, and the Respondent's contention regarding disputed facts was without legal basis. The Petitioner was not to be relegated to a Civil Court merely on the raising of such a plea. The Court directed the Respondent-authority to pay the balance amount of Rs. 6,37,336/- and the COVID-19 testing expenses of Rs. 2,18,650/- within six weeks. If payment was not made within the stipulated time, the Petitioner would be entitled to simple interest at 8% per annum from the date of invoice submission until realization. The issue of interest at 14.5% p.a. as sought by the petitioner was not expressly decided, but simple interest at 8% was granted in case of delayed payment.
Key Issues
1. Whether the Respondent-authority can unilaterally reduce the amount payable to the Petitioner after accepting their lowest bid and approving the tender amount of Rs. 43,71,675/- plus 5% GST, contrary to the terms of the accepted tender? (Question of law turning on principles of contract law and tender acceptance). 2. Whether the Petitioner is entitled to reimbursement of Rs. 2,18,650/- for COVID-19 testing expenses incurred for inbound cultural troupes as directed by the Respondent-authority? (Question of fact and law turning on contractual obligations and reimbursement clauses). Petitioner's Arguments: The Petitioner argued that once the tender bid was accepted and the amount approved, the authorities could not reduce it. They relied on the tender document, their submitted bids, and the letter dated 06.01.2023 approving the lowest bid of Rs. 43,71,675/- plus 5% GST. They also contended that the breakdown of costs by the authorities was illegal and that the Petitioner should not be relegated to a Civil Court based on a mere assertion of disputed facts, as the documents clearly indicated no such dispute. Respondents' Arguments: The Respondent-authority opposed the maintainability of the writ petition, arguing that there were disputed questions of fact that could not be adjudicated in a writ proceeding. They claimed that based on a breakdown of services, the total amount payable was Rs. 37,34,339/-, and nothing remained due. They asserted that the Petitioner's remedy lay in filing a civil suit.
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Cause title — parties, addresses and appearances
ORAL ORDER 4 13-08-2025 Heard learned counsel for the parties.
The present Writ Petition has been filed for the following reliefs:- “(i) To issue an appropriate writ/order/direction in the nature of Mandamus commanding the Respondents 2/8 to pay an amount of Rs. 6,37,336/- (Rupees Six Lakhs Thirty Seven Thousand Three Hundred Thirty Six Only) being admitted dues payable by the Respondents to the petitioner towards invoice bearing nos. 793,794,795,796,797 and 798 dated 29.01.2023 for cultural troupes of Cambodia, Tipa, Myanmar, Vietnam, Thailand and Sri Lanka. (ii) To issue an appropriate writ/order/direction in the nature of Mandamus commanding the Respondents to pay up-to-date interest from 29.01.2023 till the date of actual payment @ 14.5% p.a. as per SBI borrowing rate on the amount of Rs. 6,37,336/- (Rupees Six Lakhs Thirty Seven Thousand Three Hundred Thirty Six Only). (iii) To issue an appropriate writ/order/direction in the nature of Mandamus commanding the Respondents to pay an amount of Rs. 2,18,650/- (Rupees Two Lakhs Eighteen Thousand Six Hundred Fifty Only) being the amount paid by the petitioner to the various cultural troupes as reimbursement for their covid testing expense. (iv) To issue an appropriate writ/order/direction in the nature of Mandamus commanding the Respondents to pay up-to-date interest from 02.02.2023 till the date of actual payment @ 14.5 % p.a. as per SBI borrowing rate on the amount of Rs. 2,18,650/- (Rupees Two Lakhs Eighteen Thousand Six Hundred Fifty Only).”
It is the case of the petitioner that pursuant to the tender issued by the respondent-authhority, the petitioner has 3/8 participated and submitted his quotation. The respondent- authority vide Ref. No. 003/BTMC/23 dated 06.01.2023 has declared the petitioner as the lowest bidder and he was awarded the contract for booking of the tour packages as envisaged in the tender notice. The petitioner submitted the invoices for payment of the work completed vide invoices bearing Nos. 793, 794, 795, 796, 797 and 798 dated 29.01.2023 aggregating to the total amount of Rs. 43,71,675/-.Thereafter, the petitioner was paid an amount of Rs. 35 Lakhs on 11.01.2023 which was duly acknowledged by the petitioner vide Money Receipt dated 12.01.2023. Further, it is stated that the petitioner had spent approximately Rs. 2,18,650/- towards the covid testing for inbound cultural troupes coming from Cambodia, Myanmar and Thailand vide letter dated 02.02.2023 and the same was informed to the respondent-authority. That out of the total balance payment of Rs. 8,71,675/-, the petitioner had subsequently been paid an amount of Rs. 1,96,996/- on 29.03.2023 and the same has been acknowledged by the petitioner. That the balance amount of Rs. 6,37,336/- has not being paid to the petitioner though the petitioner has reminded the authorities to pay the same along with the amount of Rs. 2,18,650/- spent towards covid testing for the inbound cultural 4/8 troupes coming from Cambodia, Myanmar and Thailand. Though the petitioner has been making rounds of the respondents by writing various letters and e-mails, the same has not been paid till date. Left with no other alternative, the petitioner has approached this Hon’ble Court by way of the present writ petition.
In the counter affidavit filed by the Respondent No. 4, the facts that the petitioner has been awarded the contract and he has completed the same which has not been denied by the respondent-authority. However, the authorities have annexued Annexure R-1 giving the break-up of the bills to the petitioner wherein a chart has been prepared. The perusal of the chart shows that the authorities have segregated the amounts payable to the petitioner under various heads i.e. Air/Railway Ticket, Accommodation Cost, Food Cost, Transportation Cost, Escort & Guidence Cost, Miscellaneous Cost, VISA Fee and the total amount arrived at by the authorities payable to the petitioner is Rs. 37,34,339/- (Thirty seven lakhs thirty four thousand three hundred thirty nine rupees only).
Learned counsel appearing on behalf of the petitioner has stated that once the authority has accepted the tender bids submitted by the petitioner, the questions of 5/8 reducing the amount payable to the petitioner does not arise. Learned counsel has drawn the attention of this Court to the tender document and also the bids submitted by the petitioner and also the letter dated 06.01.2023 bearing Ref. No. 003/BTMC/23 (Annexure P/3) wherein the authorities having found that the petitioner has quoted the lowest figure of Rs. 43,71,675/- + 5% GST has been approved. Learned counsel has stated that once the bid of the petitioner was accepted the authorities cannot reduce the amount payable to the petitioner. Moreso, when there is no complaint from any quarter against the petitioner. Further, learned counsel has stated that due to the prevalence of the COVID-19, the petitioner was directed to test the incoming troupes and the petitioner has spent an amount of Rs. 2,18,650/- which is yet to be paid by the authorities.
Learned counsel appearing on behalf of the respondent-authority has vehemently opposed the very maintainability of the present writ petition. Learned counsel has stated that there are disputed questions of fact which cannot be gone into the present writ petition and the present writ petition is liable to be dismissed on the said ground. Learned counsel has stated that the respondent-authority duly taking into consideration the services rendered by the petitioner have paid 6/8 the total amount of Rs. 37,34,339/- and nothing remain to be paid. That in case, the petitioner has any grievance his remedy is to approach the Civil Court by way of civil suit and not by way of present writ petition. Learned counsel has prayed for dismissing the present writ petition.
Admittedly, as seen from the record, the authorities have flouted a tender for the purpose of taking care of the troupes/tourist coming from various corners of the world i.e. Cambodia, Myanmar, Vietnam, Thailand and Sri Lanka etc. to which the petitioner has submitted his bid. The authorities having found that the quotation submitted by the petitioner was the lowest, have granted the tender in favour of the petitioner.
A perusal of the letter dated 06.01.2023 bearing Ref. No. 003/BTMC/23 which is extracted below for better appreciation reads as under:- “Reference to this office Letter No. 295/BTMC/22 dated 24.12.2022 for inviting the quotation of inbound tour package for 6 Foreign Cultural Troupe. I, am to inform you that your quotations is found lowest Rs. 43,71,675 + GST 5% approved.”
That the authority having accepted the tender and agreed to pay an amount of Rs. 43,71,675/- along with the 5% GST cannot turn around and reduce the same after completion 7/8 of the work. Once the authority have accepted the tender submitted by the petitioner and approved the amount, the authority cannot reduce the amount on one pretext or the other. The amount arrived at by the authorities by breaking up the components as Air/Railway Ticket, Accommodation Cost, Food Cost, Transportation Cost, Escort & Guidence Cost, Miscellaneous Cost, VISA Fee is per se illegal. The authorities having accepted the tender cannot refuse to pay the total amount after completion of the work.
Though the counsel for the respondents has vehemently opposed the very maintainability of the present writ petition on the ground that there are disputed questions of fact, it is to be noted that a bare perusal of the documents throws ample light issue involved and there are absolutely no disputed questions of fact involved in the present writ petition. Therefore, the contention of the counsel for the respondents that the present CWJC cannot be entertained is without any legal basis. Merely, because a bogey of disputed questions is raised, the petitioner cannot be relegated to the Civil Court.
Having regard to the above-mentioned facts and circumstances, the present writ petition is allowed. The respondent-authority are directed to pay the balance amount of 8/8 Rs. 6,37,336/- and also the amount of Rs. 2,18,650/- incurred by the petitioner for the purposes of conducting COVID-19 tests. The entire exercise shall be completed as expeditiously as possible preferably within a period of six weeks from the date of the receipt of the copy of this order. In case, the amount are not paid by the respondent-authority to the petitioner within the stipulated time, the petitioner would be entitled to simple interest at the rate of 8% per annum from the date of submission of the invoices till the date of actual realization.
With the above directions, the present writ petition stands allowed to the extent indicated above.
shakir/- (A. Abhishek Reddy, J) U
Reproduced from the public record of the Patna High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.