Kerala High Court
Irikkur Construction Company vs The Project Director on 6 June, 2024
Author: T.R. Ravi
Bench: T.R.Ravi
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR. JUSTICE T.R.RAVI
THURSDAY, THE 6TH DAY OF JUNE 2024 / 16TH JYAISHTA, 1946
WP(C) NO. 16780 OF 2023
PETITIONER:
IRIKKUR CONSTRUCTION COMPANY
MH TOWER, IRIKKUR P.O., IRUKKUR,
KANNUR, PIN - 670593
REPRESENTED BY ITS MANAGING PARTNER
BY ADVS.
DEEPU THANKAN
UMMUL FIDA
LAKSHMI SREEDHAR
LEKSHMI P. NAIR
NAMITHA K.M.
RESPONDENTS:
1 THE PROJECT DIRECTOR
KERALA ROAD FUND BOARD,
BSNL BUILDING, PMG JUNCTION,
TRIVANDRUM, PIN - 695003
2 URALUNGAL LABOUR CONTRACT CO-OPERATIVE
SOCIETY LIMITED
MADAPPALLI COLLEGE P.O., PIN - 673102
VADAKARA, KOZHIKODE REPRESENTED BY ITS CHAIRMAN
3 STATE OF KERALA
REPRESENTED BY SECRETARY TO GOVERNMENT,
PUBLIC WORKS DEPARTMENT,
GOVERNMENT SECRETARIAT,
THIRUVANANTHAPURAM, PIN - 695001
ADDL.R4 IMPLEADED
ADDL. R4 KERALA INFRASTRUCTURE INVESTMENT FUND BOARD (KIFFB),
2ND FLOOR, FACILITY SQUARE,
MG ROAD, STATUE, THIRUVANANTHAPURAM 695001.
WP(C) NO. 16780 OF 2023
2
*ADDL.R4 IS IMPLEADED AS PER ORDER DATED 06.06.2024 IN
I.A.NO.4 OF 2024 IN WPC NO.16780/2023.
BY ADVS.
SRI.M.SASINDRAN
SRI. S. KANNAN SPL. GOVT. PLEADER
SRI. S. CHANDRASEKARAN NAIR, SC.
SRI. K. V. MANOJ KUMAR. SC.
THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON
06.06.2024, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
WP(C) NO. 16780 OF 2023
3
T.R. RAVI, J.
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W.P.(C). No.16780 of 2023
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Dated this the 6th day of June, 2024
JUDGMENT
The petitioner participated in a tender process and became the L1
bidder. By virtue of a preference available to Labour Contract Co-
operative Societies, the bid submitted by the 2 nd respondent was
proposed to be accepted. At that stage, this writ petition has been filed
and interim orders were issued stopping further steps. The contention
of the petitioner is that though the right of the Labour Contract Co-
operative Society to get preference has been upheld by a Division Bench
of this Court, in the case on hand, the 2 nd respondent is not entitled to
participate in the bid itself since that would be a violation of the CVC
guidelines. The counsel places reliance on Circular No.01/01/17 dated
23.01.2017 and Circular No.08/06/11 dated 24.06.2011 issued by the
Central Vigilance Commission in this regard. The counsel also relies on
the stipulations in the Manuel of Procurement. As per the Circulars, a
firm that has been engaged by the employer to provide goods, works or
non-consulting services for a project, or any affiliate that directly or
indirectly controls, is controlled by, or is under common control with
WP(C) NO. 16780 OF 2023
that firm, shall be disqualified from providing consultancy services
resulting from or directly related to those goods, works, or non-
consulting services. The intent and purport of these Circulars is that a
person having a direct knowledge about the project which would be an
added advantage as against the other bidders, shall not participate in
the bid.
2. In the counter affidavit filed by the respondents it is admitted
that the 2nd respondent was engaged after calling for a tender for
carrying out the work of KIIFB - Investigation work for the
improvements and providing BM and BC to ETC Poomangalam -
Mazhoor - Panniyoor - Kalikkadavu - Padeppengad - Madekkad - in
Kannur District. The main work that has been tendered is KIIFB -
improvement and providing DBM and BC to ETC - Poomangalam -
Mazhoor - Panniyoor - Kalikkadavu - Padeppengad - Madekkad road
(Km 0/000213/551 first reach) in Kannur District. According to the
petitioner, the 2nd respondent had a role in the preparation of the DPR.
According to the respondents, the DPR has not been prepared by the 2 nd
respondent but certain works had been entrusted with them and the
result of the investigation has resulted in the modification of the DPR.
According to the 2nd respondent, this will not in any manner be a
WP(C) NO. 16780 OF 2023
disqualification as spoken to in the Circulars mentioned above. The
above aspect has not been considered by the authorities at any stage.
In the above circumstances, this writ petition is disposed of
directing the 3rd respondent to consider whether the 2nd respondent is
disqualified under the Circulars mentioned above and the Manual of
Procurement and thereafter decide on whether or not to grant
preference to the 2nd respondent over the petitioner who is the L1
bidder. The 2nd respondent as well as the petitioner shall also be given
an opportunity to raise their contentions before the 3rd respondent. The
3rd respondent shall also consider the effect of the judgment in
Haffkine Bio-Pharmaceutical Corporation Ltd. a Government of
Maharashtra Undertaking Through Manager and Others V.
M/s.Nirlac Chemicals through its Manager and Others reported in
(2017 KHC 6504), wherein the Hon'ble Supreme Court has held that
the violation of CVC guidelines itself is sufficient to vitiate the entire
tender process. Necessary action shall be completed within six weeks
from the date of receipt of a copy of this judgment.
Sd/-
T.R. RAVI
JUDGE
Pn
WP(C) NO. 16780 OF 2023
APPENDIX OF WP(C) 16780/2023
PETITIONER'S EXHIBITS
Exhibit P-1 TRUE COPY OF THE NOTICE INVITING TENDER
PUBLISHED BY THE FIRST RESPONDENT DATED
03/03/2023
Exhibit P-2 TRUE COPY OF THE TENDER SUMMARY REPORT AT
THE TECHNICAL STAGE DATED 03/05/2023
Exhibit P-3 TRUE COPY OF THE FINANCIAL BID SUMMARY BID
Exhibit P-4 TRUE COPY OF THE GOVERNMENT ORDER
GO(MS).NO.41/2020/PWD DATED 19/03/2020
Exhibit P-5 TRUE COPY OF THE GOVERNMENT ORDER DATED
09/02/2021
Exhibit P-6 TRUE COPY OF GO(MS).NO.21/2022/PWD DATED
29/07/2022
Exhibit P-7 TRUE COPY OF COMMON JUDGMENT IN WPC
24162/2022 DATED 23/11/2022
Exhibit P-8 TRUE COPY OF THE JUDGMENT RENDERED BY THE
DIVISION BENCH OF THIS HON'BLE COURT IN
W.A.NO.132/2023 DATED 31/01/2023
Exhibit P-9 TRUE COPY OF THE INTERIM ORDER ISSUED BY THE
HON'BLE SUPREME COURT IN SLP NO. 3033/2023
DATED 17/02/2023
Exhibit P-10 TRUE COPY OF THE REGISTRATION CERTIFICATE
PRODUCED BY THE SECOND RESPONDENT ALONG WITH
THE BID SUBMITTED BY THEM IN THE SUBJECT
WORK DATED 13/02/1925
Exhibit P-11 TRUE COPY OF THE COMMUNICATION OF THE 1ST
RESPONDENT DATED 08/06/2022
Exhibit P12 A TRUE COPY OF THE GO(MS) NO.135/ 97/CO-OP
DATED 13/11/1997
WP(C) NO. 16780 OF 2023
Exhibit P13 A TRUE COPY OF THE GO (MS) NO. 44/04/PWD
DATED 19/03/2004
Exhibit P14 A TRUE COPY OF THE GO(RT) NO.568/2020/CO.OP
DATED 04/11/2020
Exhibit P-15 A TRUE COPY OF THE MANUAL FOR PROCUREMENT OF
WORKS 2019 ISSUED BY THE MINISTRY OF
FINANCE, GOVERNMENT OF INDIA DATED NIL
Exhibit P-16 A TRUE COPY OF THE CIRCULAR NO.01/01/17
DATED 23/01/17 OF CENTRAL VIGILANCE
COMMISSION
Exhibit P-17 A TRUE COPY OF THE CIRCULAR NO.08/06/11
DATED 24/06/11 OF CENTRAL VIGILANCE
COMMISSION
RESPONDENTS' EXHIBITS
Exhibit R2(a) TRUE COPY OF THE G.O.(MS) NO.135/97/CO-OP.
DATED 13-11-1997 ISSUED BY THE 3RD
RESPONDENT.
Exhibit R2(b) TRUE COPY OF THE G.O.(MS) NO. 44/01/PWD
DATED 19-03-2004 ISSUED BY THE 3RD
RESPONDENT.
Exhibit R2(c) TRUE COPY OF THE G.O.(MS) NO. 181/08/CO.OP.
DATED 02-08-2008 ISSUED BY THE 3RD
RESPONDENT.
Exhibit R2(d) TRUE COPY OF THE G.O (M.S) 568/2020/COOP
DATED 4/11/2020
Exhibit R2(e) TRUE COPY OF THE JUDGMENT DATED 17.11.2020
IN W.P.(C). NO.3760 OF 2020 OF THIS
HONOURABLE COURT.
Exhibit R2(f) TRUE COPY OF THE REGISTRATION CERTIFICATE
ISSUED TO THE 2ND RESPONDENT DATED
WP(C) NO. 16780 OF 2023
03-01-2020.
Exhibit R2(g) TRUE COPY OF THE CONTRACTORS'S REGISTRATION
CARD ISSUED TO THE 2ND RESPONDENT DATED
20-03-2023
Exhibit PR2(h) A TRUE COPY OF THE JUDGMENT IN W.A.NO. 44 OF
2021 AND CONNECTED CASES
Exhibit R2(g) A TRUE COPY OF THE ORDER NO.PWD015-85/APR-
4/2022/KIIFB DATED 08.08.2022 OF THE CHIEF
EXECUTIVE OFFICER, KIIFB
Exhibit R1(a) TRUE COPY OF THE G.O.(MS)NO. 69/2018-FIN
DATED 24.02.2018
EXHIBIT R1 (b) TRUE COPY OF THE G.O.(MS) NO.315/2016/FIN
DATED 08.08.2016
