2014 (8) TMI 514 - HC - Indian Laws

Violation of tender conditions - Tender for leasing of shops - Rejection of bids - Non fulfillment of conditions of requirements of tender - Lack of service tax number - Held that - A perusal of the written statement of the official-respondents shows that in fact the petitioners have filed such affidavit on November 4, 2011 attested by the Notary Public and not by the Executive Magistrate. The petitioners were called upon to file affidavit vide communication dated November 17, 2011 attested by the Executive Magistrate. Learned counsel for the respondents could not point out any guidelines, instructions or statutory provisions as to why the affidavit is required to be attested only by Executive Magistrate. The Notary Public is authorised with the power of attestation of affidavits under the Notaries Act, 1952. Therefore, we find that affidavit filed by the petitioners attested by the Notary Public within the time of submitting tenders, meets the requirement of the tender conditions. As regard the issue of lack of service tax number by the petitioners, such requirement is not a requirement by statute. The chemists under the Finance Act, 1994 are not required to have registration with service tax authorities. The committee was right in proposing the minor deviation so as to have service tax registration after the finalisation of the bids from the successful bidder. - present is 4th/5th attempt to lease out the shops situated in the medical college/hospital premises. The non-leasing of such shops is causing great inconvenience to the public. Therefore, we deem it appropriate to direct the administration to open the financial bids of the petitioners and process the same in accordance with law - Decided in favour of petitioner.

Summary

Issues:
1. Rejection of bids of chemists due to lack of service tax number.
2. Legal challenge to the requirement of service tax registration.
3. Delay in finalizing the tender process for leasing chemist shops.
4. Dispute regarding the opening of financial bids of petitioners.

Analysis:
1. The petitioners, chemists, submitted bids for leasing shops based on an advertisement inviting tenders. The bids were rejected during technical evaluation for not having a service tax number, a condition in the tender notice. The chemists argued that service tax was not applicable to them, but to the administration. The court found the rejection unjustified as service tax registration was not mandatory for chemists under the Finance Act, proposing to allow registration post-bid finalization.

2. The court noted the repeated attempts to lease the shops causing inconvenience and directed the administration to open the financial bids of the petitioners. The respondents' argument of urgency due to patient inconvenience was acknowledged, emphasizing the need to expedite the tender process for public welfare.

3. The issue of affidavit attestation by the Notary Public instead of the Executive Magistrate was raised. The court found the affidavit submission by the petitioners timely and valid, meeting the tender conditions. Lack of statutory requirement for Executive Magistrate attestation was highlighted, supporting the petitioners' compliance with the affidavit submission.

4. Concerns were raised regarding the impact on existing bidders if the financial bids of the petitioners were opened. The court balanced these concerns with the need for a fair tender process, ultimately directing the opening and processing of petitioners' financial bids in line with legal procedures.

5. The judgment emphasized the importance of timely finalization of tenders for public service, instructing the administration to conclude the tender process promptly. The writ petition was disposed of with directions for immediate action, ensuring transparency and adherence to legal requirements in the leasing of chemist shops.