Simplified Explanation of the Judgment
In a recent decision, the Patna High Court dismissed a writ petition filed by a scrap dealer who had been blacklisted by the Bihar State Text Book Publishing Corporation for failing to comply with a work order. The Corporation had floated a tender for the sale of damaged textbooks in both shredded and unshredded forms, which were to be used only for pulp preparation, not for resale or other uses.
The petitioner, a registered scrap dealer, participated in the tender and quoted two separate prices for the shredded and unshredded categories. The work order was issued for the unshredded books, and the petitioner was required to pay ₹1.91 crore for approximately 600 metric tons of unshredded scrap. However, the petitioner refused to comply, claiming that:
- He should have received both shredded and unshredded scrap as per his bid.
- The amount demanded was far higher than his quoted price of ₹58.71 lakh.
The Court examined the tender documents and found that the petitioner had indeed quoted ₹26,786 per metric ton for unshredded books and ₹9,786 for shredded books. Since only unshredded books were available at the time, the respondent issued the work order based on the higher quote.
The Court emphasized that the tender was on an “As Is Where Is” basis and bidders were allowed to inspect the stock in advance. There was no assurance that both types of books would be supplied together. Further, the inclusion of GST and TCS in the final amount was valid since the bid documents clearly stated that applicable taxes would be added.
Moreover, the petitioner had uploaded a price bid excluding taxes but later objected to the tax-inclusive final figure. The Court held this to be unjustified.
As the petitioner failed to make the payment and did not collect the materials, the Corporation canceled the work order and blacklisted him for two years. The Court found this action lawful and proportionate.
Significance or Implication of the Judgment
This judgment underscores the importance of clarity and diligence in government tenders. It shows that bidders must honor their commitments and cannot later deny responsibility based on unrealistic assumptions or incomplete readings of the tender terms.
For government agencies, the decision provides legal backing to enforce contractual obligations and impose blacklisting when contractors default. For the general public, it assures accountability in public procurement and waste management processes, especially in sectors like textbook disposal where ethical use is essential.
Legal Issue(s) Decided and the Court’s Decision
- Was the work order valid despite awarding only part of the bidder’s quoted categories?
- Yes. The tender was on an “As Is Where Is” basis, and the petitioner was not entitled to demand both categories.
- Did the price escalation violate the bid terms?
- No. The escalation included GST and TCS, which were explicitly part of the terms, and the quoted prices were pre-tax.
- Was blacklisting for non-compliance justified?
- Yes. The Corporation acted reasonably in blacklisting the petitioner for failing to pay or collect the material.
Case Title
M/s S.K. Traders vs Bihar State Text Book Publishing Corporation Ltd. & Ors.
Case Number
CWJC No. 1476 of 2024
Coram and Names of Judges
Hon’ble the Chief Justice K. Vinod Chandran
Hon’ble Mr. Justice Rajiv Roy
Names of Advocates and who they appeared for
Mr. Brisketu Sharan Pandey, Advocate — for the petitioner
Mr. Naresh Dikshit, Advocate — for the respondents
Link to Judgment
https://www.patnahighcourt.gov.in/ShowPdf/web/viewer.html?file=../../TEMP/b656394e-e459-4e66-a06c-51d3f75bf542.pdf&search=Blacklisting
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