M/S Methodex System Private Limited vs. The Additional Director General Cpwd Nirman Bhawan Lucknow And 2 Others
Facts
The petitioner, M/s Methodex System Private Limited, was the L-1 bidder for a construction contract for the GST Building in Ghaziabad. The letter of acceptance was issued on April 25, 2025, requiring the petitioner to submit a performance guarantee of Rs. 8,37,155/- within seven days. The petitioner failed to submit the performance guarantee within the stipulated period. Consequently, on May 6, 2025, the respondents passed an order forfeiting the Earnest Money Deposit and debarring the petitioner from the re-bidding process. The petitioner filed a writ petition challenging the debarment from future tenders.
Held
The Court disposed of the writ petition by clarifying the scope of the debarment order. The Court held that the impugned order, which debarred the petitioner from the re-bidding process, would not prevent the petitioner from participating in bids for other works in the future. The reasoning was based on the respondent's submission that Clause-18 of the Tender Document only restricts participation in the re-bidding of the specific work for which the default occurred. The ratio decidendi is that a default in submitting a performance guarantee for a particular tender should not lead to a blanket debarment from all future tenders unless specifically provided for and justified. The operative direction was to clarify the debarment order.
Key Issues
1. Whether the debarment of the petitioner from participating in all future tenders is justified, considering the petitioner's default in submitting a performance guarantee for a specific contract? Petitioner's contention: The petitioner argued that they are aggrieved only by the part of the order debarring them from participating in all future tenders. Respondent's contention: The respondent (Union of India) submitted that the impugned order was passed under Clause-18 of the Tender Document. They clarified that the restriction under this clause is only against participation in the re-bidding process of the same work. The respondent stated they have no objection if this aspect is clarified, as the work in question has already been allotted to another contractor and the grant of that contract is not being challenged.
Sections Cited
Clause-18 of the Tender Document
AI-generated summary — verify with the full judgment below
Neutral Citation No. - 2025:AHC:110123-DB Court No. - 21 Case :- WRIT - C No. - 20522 of 2025 Petitioner :- M/S Methodex System Private Limited Respondent :- The Additional Director General Cpwd Nirman Bhawan Lucknow And 2 Others Counsel for Petitioner :- Abhishek Srivastava,Mayanka Srivastava,Shardool Agrahari Counsel for Respondent :- A.S.G.I. Hon'ble Manoj Kumar Gupta,J. Hon'ble Ram Manohar Narayan Mishra,J.
The facts of the case necessary for disposal of the instant petition lies in a narrow compass. The petitioner was L-1 bidder in a contract for construction of GST Building (2 Basement+G+7 Floors) at Kamla Nehru Nagar (Near Hapur Chungi), Ghaziabad (U.P.) (SH:-Provision of Partition, Furniture and Blinds at Ground Floor to fourth floor and seventh floor). (SW:-Provision of Furniture). The bid of the petitioner was accepted and a letter of acceptance was issued on 25.04.2025. One of the conditions of letter of acceptance was that the petitioner would submit a performance guaranty in a sum of Rs.8,37,155/- within seven days from the date of issuance of the acceptance letter. As the petitioner defaulted in submitting the performance guaranty within stipulated period, the re
The judgment continues below.
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