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2025 DAILYLAW 17374 (HP)

M/S VIRAKSH CONTRACTORS v. SJPNL AND ANOTHER

CWP/9799/2025 · 2025-08-29

Sushil Kukreja, Vivek Singh Thakur

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( 2025:HHC:29524 ) IN THE HIGH COURT OF HIMACHAL PRADESH, SHIMLA CWP No. 9799 of 2025 Decided on:  29.08.2025 _________________________________________________________ M/s Viraksh Contractors ....Petitioner Versus SJPNL & Anr. …Respondents _ Coram The Hon’ble Mr. Justice Vivek Singh Thakur,  Judge. The Hon’ble Mr. Justice Sushil Kukreja,  Judge. Whether approved for reporting?1 For the petitioner      : Mr. Vishal Mohan, Senior Advocate with Mr. Aditya Sood and Mr. Praveen Sharma, Advocates. For the respondents    : Mr. Shrawan Dogra, Senior Advocate with Mr. Tejasvi Dogra, Advocate. Vivek Singh Thakur, Judge (oral) Petitioner   has  approached  this   Court  seeking following substantive reliefs:­ “(a) Issue a writ in the nature of certiorari and quash Annexure  P­13   dated  28.05.2025,   vide  which,   a   fresh tender has been floated for the work which was earlier allotted to the petitioner and that too without deciding the representation   preferred   by   it  to   the   respondents. The floating of the fresh e­tender be held to be illegal and not sustainable in the eyes of law. (b) Issue writ in the nature of mandamus directing the respondents to decide the representation of the petitioner 1 Whether reporters of Local Papers may be allowed to see the judgment? ( 2025:HHC:29524 ) (Annexure P­12) and allow it to complete the work at the rates as per the tender now floated. (c) Issue a writ in the nature of certiorari and quash the action of the respondents vide which the work awarded to the petitioner stands terminated because of no fault of it. (d) Issue a writ in the nature of mandamus and direct the respondents to decide the claim of losses incurred by the petitioner.” 2. Respondent   No.   1­Shimla   Jal   Prabandhan Nigam   Limited   (SJPNL)   vide   advertisement   dated 24.08.2018 had invited e­tenders for providing and laying testing   of   DI   pipes   of   various   dia,   construction   of   RCC manhole   chamber   and   construction   of   STP   2.00   MLD including   O&M   of   entire   scheme   for   five   year   under Sewerage   Scheme   for   left   out   area   of   Totu   in   Tehsil   & District Shimla, H.P. 3. On   16.01.2019,   work   was   awarded   to   the petitioner   and   as   per   the   petitioner,   the   work   was immediately   started   after   handing   over   the   site   to   the petitioner. The work was to be completed within a period of one year. 4. It   is   case   of   the   petitioner   that   execution   of work   could   not   be   completed   on   account   of   objections raised by the villagers of Bharyal as well as for want of 2 ( 2025:HHC:29524 ) forest clearance under Forest Conservation Act, for land use changes and non­completion of the remaining work of laying DI pipelines was not on account of any fault on the part of the petitioner. 5. It   is   case   of   the   respondents   that   the   said clearance   was   pending   with   respect   to   the   Sewerage Treatment   Plant   (STP),   but   there   was   no   hindrance   in completing rest of the work. It is further submission of the respondents   that   cost   of   Sewerage   Treatment   Plant,   as quoted by the petitioner was Rs. 60 Lakhs, whereas, total work awarded to the petitioner was amounting to Rs. 15.93 Crores. 6. The necessary clearance has been received by the Municipal Corporation on 14.03.2025 and thereafter respondent No. 1 had requested the petitioner firstly, to complete the work in terms of the award granted to the petitioner  in the year, 2019 and thereafter with escalation of   cost/price   as   per   Clause   10CC   of   award/contract, whereas, according to petitioner, because of high rise in the cost, it was not possible for the petitioner to work even with escalation of the cost/price under Clause 10CC of the award/contract. 3 ( 2025:HHC:29524 ) 7. In   aforesaid   facts   and   circumstances,   SJPNL has terminated the contract vide letter dated 19.05.2025 (Annexure   P­11)  and   issued  fresh  e­tender   notice   dated 28.05.2025 and according to petitioner said e­tender was issued   without   deciding   its   representation   preferred against termination of award/contract. 8. Feeling aggrieved by the aforesaid e­tender, the petitioner   has   approached   this   Court   by   filing   present petition. 9. The   description   of   item,   estimated   cost   and awarded   amount   (Approx   L­1)   of   work   awarded   to   the petitioner on 16.01.2019 is detailed as under :­ S. No. Description of Item Estimated cost Awarded amount (Approx. L­1) 1. Providing and Laying of Sewerage Network Rs. 9,65,96,937/­ Rs. 15.93 Cr. 2. Construction of STP of 2 MLD Rs. 3,63,58,500/­ Rs. 60 Lacs 3. Providing Online Monitoring System and O&M for 5 years Rs. 92.09 Lacs Rs. 21.60 Lacs 4. Total Rs. 14,21,62,312/­ Rs. 16.74 Cr. 4 ( 2025:HHC:29524 ) 10. Admittedly, some work has been done by the petitioner and most of the bills submitted by the petitioner in   that   regard   have   also   been   cleared   and   paid   to   the petitioner, except the pending bills of about 1 crore, which, according   to  learned  counsel   for   the  petitioner  are   also likely to be disbursed after completing codal formalities for the work already done, in terms of the award. 11. Description of item and estimated cost (Approx.) in new e­tender issued on 28.05.2025 for remaining work was as under:­ S. No. Description of Item Estimated cost (Approx.) 1. Remaining part of Sewerage Network Rs. 5.29 Cr. 2. Construction of STP of 2 MLD+Providing Online Monitoring System Rs. 8.77 Cr. 3. O&M for 5 years (Network+STP) Rs. 3.82 Cr. 4. Total Rs. 17.91 Cr. 12. In response to e­tender dated 28.05.2025, two bidders had participated in the tender process, whereas, according   to   norms   and   regulations   applicable,   three bidders were required mandatorily in first tender, failing 5 ( 2025:HHC:29524 ) which, tender was to be re­issued for inviting fresh tender and, therefore, with permission of the Court, vide order dated 09.07.2025, notice for re­tender was again issued on 16.07.2025,   wherein,   petitioner   was   also   permitted   to participate. However, neither petitioner nor anybody else participated in the process and, therefore, because of zero bid e­tender was cancelled and third time tender has been issued on 01.08.2025 and in response thereto, only one bidder has participated, but petitioner has not participated this time also. 13. It has been submitted that perhaps because of pendency   of   litigation,   no   one   is   coming   forward   to participate in the tender  process to avoid litigation  and huge financial losses, on account of litigation. 14. Learned counsel for the petitioner submits that the petitioner is ready to complete the remaining part of Sewerage work on the escalated cost, as notified in new tender   issued   by   respondent   No.   1,   whereas,   learned counsel   for   the   respondents   submits   that   in   case   the petitioner intends to continue and complete the work then the parties, as per law, have to abide by the conditions of award already issued in favour of the petitioner in the year, 6 ( 2025:HHC:29524 ) 2019,   according   to   which,   remaining   work   has   to   be completed   within   the   cost   as   per   bid   submitted   by   the petitioner and for delay only + escalation as per Clause 10CC of the award/contract and, therefore, respondent No. 1 is not in a position to accept the offer of the petitioner, as it would be against the financial norms as well as concept of fair and transparent tender process. Further, there may be possibility of bidding by someone for completing the remaining work, at a cost, much below the estimated cost notified in the new tender, as in the year 2019 also, against estimated cost of Rs. 3,63,58,500/­ construction of STP of 2 MLD, the petitioner itself had submitted bid for Rs. 60 lacs. 15. According to learned counsel for the petitioner, taking   into   consideration   the   totality   of   the   work,   the petitioner had submitted the lower bid for construction of STP of 2 MLD. 16. Considering the submissions made by learned counsel for the petitioner as well as respondent No. 1, it would not be appropriate for us to direct the respondents to allot remaining work without issuing fresh tender and and also to allow the respondents to complete the process 7 ( 2025:HHC:29524 ) of third bid dated 01.08.2025, particularly, keeping in view the   public   interest   and   possibility   of   lower   bidder   in healthy   competition.   Therefore,   respondent   No.   1   is directed   to   cancel   the   process   of   re­tender   initiated   on 01.08.2025 and to issue fresh tender for open, fair and healthy   competition   inviting   bids   afresh,   wherein, petitioner shall also be at liberty to participate. Issue raised in the present petition is disposed of in the aforesaid terms. 17. Needless to say all other claims or rights of the parties, which have not been considered by us in present petition,   if   necessity   arises,   shall   be   determined   as   per terms of the award/contract either with mutual consent of parties or by the appropriate forum, as available under law. Petition is disposed of in the aforesaid terms, so also pending application(s), if any. ( Vivek Singh Thakur ) Judge ( Sushil Kukreja ) August 29, 2025                                            Judge (raman) 8