Engineering Projects India Ltd vs The Bihar Police Building ...
2023 Latest Caselaw 2513 Patna

    IN THE HIGH COURT OF JUDICATURE AT PATNA
              Civil Writ Jurisdiction Case No.17831 of 2016
======================================================

Engineering Projects India Ltd. (A Government of India Enterprises) having its Head Office at 43, Scope Complex, Lodi Road, New Delhi-110003 & Local Office at Flat No.202, R.S. Villa, Behind Rajeshwar Hospital, Kankarbagh, P.S.-Kankarbagh, District- Patna-800020.

... ... Petitioner/s Versus

1. The Bihar Police Building Construction Corporation (Undertaking of Bihar Govt.), Kautilya Nagar, Patna-14 through its Director General of Police-cum- Chairman-cum-Managing Director.

2. The Director General of Police-cum-Chairman-cum-Managing Director, Bihar Police Building Construction Corporation (Undertaking of Bihar Govt.), Kautilya Nagar, Patna-14.

3. The Chief Engineer, Bihar Police Building Construction Corporation (Undertaking of Bihar Govt.), Kautilya Nagar, Patna-14.

4. The Superintending Engineer, Bihar Police Building Construction Corporation (Undertaking of Bihar Govt.), Kautilya Nagar, Patna-14.

5. The Executive Engineer, Rajgir Division, Bihar Police Academy Office, Chhabilapur Road, Rajgir-803116.

... ... Respondent/s ====================================================== Appearance :

For the Petitioner/s : Mr.Vikas Kumar, Advocate For the Respondent/s : Mr.Prasoon Sinha, Advocate ====================================================== CORAM: HONOURABLE MR. JUSTICE P. B. BAJANTHRI and HONOURABLE MR. JUSTICE ARUN KUMAR JHA CAV JUDGMENT (Per: HONOURABLE MR. JUSTICE ARUN KUMAR JHA)

Date : 19-05-2023

Heard learned counsel for the petitioner and learned

counsel for the respondents.

2. In the instant petition, the petitioner is challenging the

order contained in memo no.5163 dated 01.12.2015 issued by

the Chief Engineer, Bihar Police Building Construction

Corporation (hereinafter referred as 'Corporation') whereby and

whereunder the petitioner has been debarred from participating Patna High Court CWJC No.17831 of 2016 dt.19-05-2023

in any future tender of the Corporation due to non-completion of

Bihar Police Academy, Rajgir.

3. Brief facts of the case, according to the petitioner, are

that the Corporation floated a tender for construction of Bihar

Police Academy (Administrative etc., Civil, Electrical, PHED

and other works including Green Building related works) at

Rajgir. Pursuant to the said advertisement, the petitioner

participated in the said tender process and he was declared

successful. Accordingly, the aforesaid work was allotted to the

petitioner and the agreement was executed between the

petitioner and the Corporation for execution of aforesaid work

on 15.02.2012. The work commencement order was also issued

by Executive Engineer on 15.02.2012 itself. As per the aforesaid

agreement, the completion period of the work was 30 months

and the completion date was 14.08.2014. There happened to be

some non-cooperation on the part of the respondent authorities

and they were not acting as per the terms of the agreement, the

work could not be completed and the contract period was also

coming to an end, the petitioner by filing an application dated

01.08.2014 prayed for extension of time mentioning all the

issues in details. Thereafter, on 08.01.2015 under the

supervision of Chief Engineer of the Corporation, the work was Patna High Court CWJC No.17831 of 2016 dt.19-05-2023

supervised and concurrence was given for approval of time

extension, but the respondent authority did not adhere to the

aforesaid decision and approval. As the extension of time was

not given, the petitioner vide letter dated 04.03.2015 made

request to the Chief Engineer of the Corporation for extension

of time till 14.08.2015. Pursuant to the said letter, the

Corporation vide letter dated 20.03.2015 granted the extension

of time to the petitioner to complete the work before

14.08.2015. When the work was in progress and the petitioner

was facing several problems in execution of works, he made

several requests to the respondent authorities but they were

paying no heed. All of a sudden, the Chief Engineer vide letter

no. 4844 dated 03.11.2015 issued show-cause notice to the

petitioner as to why he be not debarred from future tender and

also to terminate the contract agreement. Further the Executive

Engineer vide letter no. 1043 dated 06.11.2015 issued show-

cause notice to the petitioner as to why in terms of Clause 3 of

the contract agreement, steps should not taken to terminate the

agreement. Pursuant to the aforesaid notices, the petitioner filed

his show-cause reply vide letter dated 19.11.2015 giving the

details of the problems which it was facing in execution of the

work. At the same time, it also made request to grant him Patna High Court CWJC No.17831 of 2016 dt.19-05-2023

extension of time for further 12 months so that the work may be

completed. But surprisingly the petitioner received an order

contained in memo no. 5163 dated 01.12.2015 (Annexure 1) by

which the Chief Engineer of the Corporation debarred him from

participating in future tender till completion of the work.

Thereafter, the petitioner vide letters dated 10.12.2015 and

21.12.2015 addressed to the Chief Engineer of the Corporation

made a detailed representations mentioning all the facts and

requested him to recall the debarment order, but the respondent

authorities did not accede to the request. Being aggrieved, the

petitioner filed the present Writ.

4. The learned counsel for the petitioner submitted that

there is no provision in the agreement or any other law which

empowers the Respondent authority to debar the petitioner from

participating in future tender. The learned counsel further

submitted that there is a serious breach of agreement on the part

of the respondent authorities due to which the petitioner could

not adhere to the time schedule mentioned in the agreement. The

learned counsel further submitted that due to the aforesaid

debarment, the petitioner is facing serious problems on day to

day working as there are other tenders/bids in which the

petitioner has participated and it has serious apprehension that Patna High Court CWJC No.17831 of 2016 dt.19-05-2023

due to the said debarment, its technical bid may be rejected on

this ground. The learned counsel further submitted that the

aforesaid order of debarment is prejudicially causing great

hardship in day to day working. The action of the Respondent

authorities is arbitrary, malafide and illegal.

5. On the other hand, learned counsel for the respondents

submitted that admittedly the agreement was executed by the

petitioner and the Corporation on 15.02.2012 and the work

commencement order also was issued by the Executive

Engineer of the Corporation on the same day i.e. 15.02.2012

itself. As per the aforesaid agreement, the completion period of

the work was of 30 months and the completion date was

14.08.2014. However, the petitioner himself after having

considered the pros and cons of the entire matter requested the

Corporation for extension of the period for completing the work

up to 14.08.2015 by its letter dated 04.03.2015 which contains

the undertaking given by the petitioner mentioning categorically

the time schedule for completion of the buildings in question. It

has been assured that 11 buildings would be completed by

15.05.2015, 05 buildings would be completed by 15.06.2015

and 04 buildings would be completed by 15.07.2015 i.e. the

total number of 20 buildings would be completed by Patna High Court CWJC No.17831 of 2016 dt.19-05-2023

15.07.2015. It was categorically stipulated that structural work,

brick work, under flooring work, plaster work and finishing

work of remaining 22 buildings would be completed by August,

2015. However, the petitioner did not complete even a single

building till 01.12.2015 and completely failed to comply with

aforesaid undertaking. The learned counsel further submitted

that even after lapse of 45 months, the work remained

incomplete which shows that the petitioner has no seriousness

and interest in completing the works of Bihar Police Academy

as per the provisions of the agreement and, as such, the

Corporation was compelled to take the decision of debarring the

petitioner under the provisions of the Bihar Contractor

Registration Rule, 2007. Thus, learned counsel submitted that

the order of debarment is proper and in terms of the agreement

and Contractor Registration Rules. Hence, this writ application

is devoid of any merit and is liable to be dismissed.

6. Having considered the material available on record

and further considering the pleadings and submissions, it

appears that in terms of the agreement dated 15.02.2012, the

petitioner was required to complete the contractual works by

14.08.2014, i.e., within thirty months, but after lapse of about

three years and nine months, he did not complete the said Patna High Court CWJC No.17831 of 2016 dt.19-05-2023

contractual work in spite of several directions/instructions as

stated above. Thereafter, the respondent-department took the

decision to debar the petitioner from participating in any future

tender vide order dated 01.12.2015. Even prior to issuance of

the aforesaid order dated 01.12.2015, the petitioner had been

warned in writing by letter no.691 dated 15.07.2015 and letter

no.1043 dated 06.11.2015 issued under the signature of the

Executive Engineer, Rajgir Division. Besides the aforesaid two

letters, a show cause notice was issued separately under the

signature of the Chief Engineer of the Corporation vide letter

dated 03.11.2015 before issuing the order of debarment dated

01.12.2015. The petitioner submitted its reply vide letter dated

19.11.2015 which was examined by the Corporation and,

thereafter, the order of debarment was issued on 01.12.2015 in

terms of provisions of Contractor Registration Rules, 2007 as

well as different clauses of the agreement.

7. It is relevant to quote the impugned order dated

01.12.2015 for ready reference.

"ममुख्य अभभिययतता कता कतायर्यालय, भबिहतार पमुभलस भिवन भनमर्याण भनगम, ककौभटिल्य नगर पटिनता -14.

सकतारण आददश

आददश सयख्यता- -...........भदननांक- .......................2015 Patna High Court CWJC No.17831 of 2016 dt.19-05-2023

भबिहतार पमुभलस एकदडममी रताजगमीर कद भनमर्याण कतायर्य कता कतायर्य आददश रू० 181.45,42,657 / (एक ममी एकतासमी कररोड पपततालमीस लताख बिदयतालमीस हजतार छ सरो सयततावन रूपयद) कमी रताभश पर कतायर्यपतालक अभभिययतता, भबिहतार पमुभलस भिवन भनमर्याण भनगम कद पतताक 150 (अनमु0) भदननांक-15-02-2012 दतारता मदरतासर्य ई०पमी०आई०एल० (भितारत सरकतार कता उदयम) करो ई-टिद न्डभरयग दतारता न्ययूनतम भनभवदताकतार हरोनद कद आधतार पर भकयता गयता थता। इस कतायर्य कता एकरतारनतामता सयख्यता -1 एफ 2/3 ऑफ 2012 हप। एकरतारनतामता कद अनमुसतार कतायर्य पतारयभि कमी भतभथ 15-02-2012 एवय कतायर्य समताभपत कमी भतभथ 14-08-2014 थमी।

(2) कतायर्य कमी पगभत एकरतारनतामता कमी अवभध ममें भिमी कताफमी धमीममी रहमी हप , भजसकद भलयद मदससर्य ई०पमी०आई०एल० करो भबिहतार पमुभलस भिवन भनमर्याण भनगम दतारता कतायर्य ममें पगभत लतानद हदतमु लगताततार पयतास भकयता गयता।

(3) ममुख्य सभचिव कद स्तर पर भदनताक 09-01-2014 करो मदससर्य ई०पमी०आई०एल० कद अध्यक-सह-पबियध भनददशक एवय उनकद वरमीय पदताभधकताभरययों कद सताथ कतायर्य कमी पगभत कमी सममीकता कमी गई , भजसममें मदससर्य ई०पमी०आई०एल० दतारता भदननांक -14-08-2014 तक कतायर्य पयूरता करनद कता भलभखत आशतासन भदयता गयता थता. भजसकता उल्लदख कतायर्यववृत जरो पतनांक - 728 भदननांक- 29-01-2014 दतारता भनगर्यत हप , ममें भकयता गयता हप। भफर भिमी कतायर्य 14-08-2014 तक पयूरता नहहीं भकयता गयता। (4) ई०पमी०आई०एल० दतारता कतायर्य करो पयूरता करनद कद भलयद उनकद पतनांक - EPI/ERsite/685/ BPBCC/002 भदननांक-04-03-2015 दतारता भदननांक -14-08- 2015 तक समयववृभद्धि कमी मनांग कमी गयमी , भजसममें उनकद दतारता सभिमी भिवनयों करो पयूरता करनद कता भलभखत (Undertaking भदयता गयता हप। मदससर्य ई०पमी०आई०एल० कद इस पत कद आलरोक ममें उच्चि स्तरमीय सममीकता कमी गई। इस सयबिध य ममें कतायर्यववृत गवृह (आरकमी) भवभिताग कता पतनांक-2018. भदननांक-23-03-2015 कद दतारता भनगर्यत भकयता गयता हप।

मदससर्य ई० पमी० आई० एल० कद पतनांक EPIERsite 685 / BPBCC/1002 भदननांक-04-03-2015 दतारता भदयद गयद भलभखत कतायर्यक्रम एवय अन्डरटिद भकयग कद आधतार पर एवय मदससर्य ई०पमी०आई०एल० जरो भितारत सरकतार कता मु द भनगम कद पतनांक -

उदयम हप, कद भलभखत अन्डरटिद भकयग करो आधतार मतानतद हय एव०क्ययू०- 1667 भदननांक 20-03-2015 दतारता भदननांक - 14-08-2015 तक समयववृभद्धि दमी गई।

(5) भनगम कद रताजगमीर पमयडल कद कतायर्यपतालक अभभिययतता दतारता एकरतारनतामता कद भवभहत पतावधतान कद अधमीन अपत्यताभशत भबिलयबि कमी भस्थभत ममें उनकद पतनांक 191 भदननांक-16- 07-2015 एवय पतनांक -1043 भदननांक-06-11-2015 दतारता ई०पमी०आई०एल० करो कतारण बितताओ नरोभटिस दमी गई हप। पमुभलस भनगम कद पतनांक -एचिक्ययू - 4844 (अनमु०) भदननांक-03-11-2015 दतारता एकरतारनतामता कद पतावधतान कद तहत कतारर्यवताई हदतमु मदससर्य ई०पमी०आई०एल० करो भदननांक 15-11-2015 तक जबितावददन द कद भलयद कतारण बितताओ नरोभटिस भनगर्यत कमी गई हप।

(6) मदससर्य ई०पमी०आई०एल० दतारता पतनांक - EPI/ERsite/685/BPBCC/1002 Patna High Court CWJC No.17831 of 2016 dt.19-05-2023

भदननांक-19-11-2015 दतारता उतर भदयता गयता हप भजसकद अनमुसतार कतायर्य पयूरता करनद कद भलयद ई०पमी०आई०एल० दतारता 12 (बितारह) महमीनद कता समय कमी मनांग कमी गई हप।

इस पकतार कतायर्य पतारयभि कमी भतभथ 15-02-2012 सद अभिमी तक लगभिग 03 वरर्य 09 महमीनद कता समय गमुजर चिमुकता हप, जबिभक कतायर्य करो 14-08-2014 तक हहीं ( 21 वरर्य ममें ) पयूरता कर ददनता थता। पमुन इनकद दतारता 12 महमीनद कद समय कता मनांग भकयता जता रहता हप, जरो उनकद कतायर्य कद पभत लगताततार अरूभचि एवय उदतासमीनतता करो दशर्यातता हप।

उपररोक्त तथ्ययों सद स्पष्ट हप भक कतायर्य करो पयूरता करनद ममें अपत्यताभशत भनलबि एवय अनतावश्यक पतताचितार दतारता भनगम कता बिहम मु यूल्य समय एवय सयसताधन नष्ट भकयता गयता । सम्यमुक भवचिताररोपरतान्त मदससर्य ई०पमी०आई०एल० करो भबिहतार पमुभलस एकद डममी, रताजगमीर कद कतायर्य पयूरता नहहीं करनद कद कतारण अगलमी भनभवदता ममें भिताग लदन द सद बिभचित (भडबितार) भकयता जतातता हप।

ह 0/- ममुख्य अभभियन्तता

जतापनांक- 5163 /पटिनता, भदननांक- 01/12/2015 पभतभलभप- मदससर्य ई०पमी०आई०एल० , करोर-3, स्करोप कम्पलदक्स, लरोधमी ररोड , नई भदल्लमी-110003, फपक्स-9111-24363426 करो सयूचिनताथर्य ।

ह 0/- ममुख्य अभभियन्तता"

8. In the light of discussions made here-in-above, it is

apparent that the petitioner has attributed the delay in execution

of work to the acts of the respondents like not providing designs

on time and further not paying any heed to the request made by

the petitioner in this regard. No doubt, the petitioner undertook

to abide by the stipulated time limit and the respondent

authorities issued two show cause notices dated 03.11.2015 and

06.11.2015 for debarring the petitioner from future work and

terminating the contract. A detailed reply to the show cause

notices was furnished by the petitioner wherein it submitted that

the desired progress could not be achieved due to various Patna High Court CWJC No.17831 of 2016 dt.19-05-2023

reasons not attributable to the petitioners and it enumerated the

major reasons in detail in its reply to the show cause notices and

sought time of 12 months for completing the project.

9. The reasoned order dated 01.12.2015 of the Chief

Engineer does not take into consideration the reply submitted by

the petitioner. Calling for show cause and not considering the

same while passing the order makes such exercise only an

empty formality. This goes against various judicial

pronouncements of the Hon'ble Apex Court, i.e., in the cases of

UMC Technologies Pvt. Ltd. vs. Food Corporation of India

and Anr., reported in (2021) 2 SCC 551, Isolators and Isolators

through its Proprietor Mrs. Sandhya Mishra Vs. Madhya

Pradesh Madhya Kshetra Vidyut Vitran Co. Ltd. and Anr,

reported in 2023 LiveLaw (SC) 330 and M/s Chauhan Builders

Raibareli Vs. The State of Uttar Pradesh and Ors., reported in

2022 LiveLaw (SC) 694.

10. In the light of these facts and circumstances and

law laid down by the Hon'ble Apex Court, the petitioner has

made out a prima-facie case so as to interfere with the

impugned order dated 01.12.2015 passed by the Chief Engineer

of the respondent-Corporation

11. Accordingly, the impugned order dated 01.12.2015, Patna High Court CWJC No.17831 of 2016 dt.19-05-2023

passed by the Chief Engineer, of the respondent-Corporation is

set aside.

12. This writ petition stands allowed.

(P. B. Bajanthri, J)

( Arun Kumar Jha, J) V.K.Pandey/-

AFR/NAFR                NAFR
CAV DATE                11.05.2023
Uploading Date          19.05.2023
Transmission Date       NA