2011 (4) TMI 1536 - HC - Indian Laws

Summary

Issues involved:
The judgment involves the consideration of bid validity, withdrawal from a consortium, disqualification of a consortium, and forfeiture of bid security.

Consideration of Bid Validity:
The tender required a bid security and specified a validity period for bids. The consortium extended the bid validity period, but a member withdrew before the expiry. The bid security could be forfeited if a bidder withdrew during the bid validity period.

Withdrawal from Consortium and Disqualification:
A member's withdrawal from the consortium led to disqualification, affecting the consortium's ability to qualify in bid evaluation stages. The court held that withdrawal of a material member from the consortium should be treated as withdrawal of the bid, justifying forfeiture of bid security.

Forfeiture of Bid Security:
The court determined that the first respondent should have issued a notice regarding the forfeiture of bid security due to the withdrawal of a member from the consortium. The bidder should have been given an opportunity to respond before any action on bid security forfeiture.

Conclusion:
The court quashed the decision to forfeit the bid security and directed the first respondent to issue a proper show cause notice and pass a reasoned order after considering the petitioner's response, if any. The writ petition was allowed to this extent.