Bar Council Of Delhi Through Its ... vs Government Of Nct Of Delhi & Ors.
2020 Latest Caselaw 3133 Del

                                                                                        Signature Not Verified
                                                                                        Digitally Signed By:DINESH
                                                                                        SINGH NAYAL
                                                                                        Signing Date:19.11.2020
                                                                                        12:28:06


                                $~12
                                *    IN THE HIGH COURT OF DELHI AT NEW DELHI
                                                            Date of decision: 18th November, 2020
                                +                 W.P.(C) 3362/2020
                                     BAR COUNCIL OF DELHI THROUGH ITS
                                     CHAIRMAN                                        ..... Petitioner
                                                  Through: Mr. Rakesh K. Khanna, Sr. Advocate.
                                                             Mr. Ramesh Gupta, Chairman, Bar
                                                             Council of Delhi.
                                                  versus

                                       GOVERNMENT OF NCT OF DELHI & ORS.        ..... Respondents

Through: Mr. Rajiv Nayyar, Senior Advocate with Mr. Satyakam, ASC for GNCTD.

Mr. Anil Soni, CGSC with Mr. Devesh Dubey, Advocate for UOI.

Mr. Kamal Gupta, Advocate with Mr. Hemant Buch Chief/P&GS (Marketing/Govt Business & Compliance) LIC of India.

Mr. Sanjay Rawat and Mr. J.P.N.

Shahi, Advocates for NIACL with Mr. Jitender Mehndiratta (M:9899023885), DGM in person.

CORAM:

JUSTICE PRATHIBA M. SINGH Prathiba M. Singh, J.(Oral)

CM APPL. 29369/2020 in W.P.(C) 3362/2020

1. This hearing has been held through video conferencing.

2. The present application has been moved on behalf of the Life Insurance Corporation of India (hereinafter, "LIC") seeking waiver of deposit of 5% performance security as insisted upon by the GNCTD vide letter dated 16th November, 2020. LIC, as also the New India Assurance

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Signing Date:18.11.2020 19:26 Signature Not Verified Digitally Signed By:DINESH SINGH NAYAL Signing Date:19.11.2020 12:28:06

Company Limited (hereinafter, "NIACL"), which has appeared today before this Court, seek waiver.

3. Under the Notice Inviting Tender (hereinafter, "NIT"), bidders were expected to deposit performance security of 5% of the value of the contract. Thereafter, once the financial and technical bids were open, bank guarantees were to be submitted by the successful bidders to secure the premium to be paid.

4. On the last date, both LIC and NIACL were given a waiver from submitting the bank guarantee considering that they are both State-owned Corporations. However, it appears that the GNCTD is now insisting on 5% performance security in terms of the NIT.

5. In the present case, as is clear from the various orders passed by this Court, the stage of NIT has been crossed long back. The position currently is that LIC and NIACL have been held to be the successful bidders for issuing the life insurance and Medi-claim policies in favour of all the eligible and verified lawyers in terms of the order dated 7th October, 2020. Thereafter, there was some miscommunication with LIC which resulted in the passing of the order dated 11th November, 2020.

6. Subsequent to the said order, letter dated 16th November, 2020 has been issued which has prompted the present application by LIC. The counsels for LIC and NIACL, as also their respective officers Mr. Hemant Buch and Mr. Jitender Mehndiratta have appeared before this Court. LIC relies upon Section 37 of the Life Insurance Corporation Act, 1956 (hereinafter, "LIC Act") to submit that the insured amount payable to the insurers is under a sovereign guarantee. In so far as NIACL is concerned, reliance is placed on circular dated 7th June, 2011, reiterated by e-mail dated

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Signing Date:18.11.2020 19:26 Signature Not Verified Digitally Signed By:DINESH SINGH NAYAL Signing Date:19.11.2020 12:28:06

25th August, 2020 sent by the Consultant of the GI Council to the Law Secretary of the GNCTD, which has clarified that from the NIACL also, no security is to be insisted upon and usually all Government Departments are given a waiver of deposit of such securities and bank guarantees.

7. In view of the submissions made above, the fact that both the Corporations are State Corporations as also in view of the provisions of the LIC Act and circular dated 7th June, 2011, this Court is inclined to grant the waiver. Accordingly, the condition for furnishing of 5% performance security by LIC and NIACL stands waived. All directions issued vide order dated 7th October, 2020 and 11th November, 2020 shall continue to operate. Parties shall also adhere to the deadlines prescribed in the said orders.

8. Application is disposed of.

PRATHIBA M. SINGH JUDGE NOVEMBER 18, 2020 MR/T

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Signing Date:18.11.2020 19:26