Private Company Conceals Info About Blacklisting In Tender Case: Delhi HC Imposes ₹12.5 Crores Cost To Be Utilised For Installation Of Smog Tower In City
Case: Cjdarcl Logistics Ltd. V. Rites Ltd And Others
Coram: Acting Chief Justice Vipin Sanghi and Justice Jasmeet Singh
Case No.: W.P.(C) 10369/2021
Court Observation: “The Registrar General will call all the stakeholders and ensure that the smog tower is installed (maybe of a lesser capacity) at a suitable place where it will contribute towards reducing the AQI levels of Delhi. The Registrar shall take steps on a war footing to ensure the installation and operationalization of the smog tower before the advent of winter season as the situation further aggravates during winter months,”
“A plain reading of the disqualification clause shows that all bidders were required to disclose any contract, where the award was determined i.e., cancelled. The termination of the contract by respondent No.3, and the subsequent termination letter date 08.05.2021 tantamounted to determination of the contract. It is fallacious for respondent No.3 to contend that even after it had been declared the L-1 bidder, there was no binding obligation created on it qua the said tender, and it could walk out of the tender on the specious plea of committing a mistake in submitting its bid,”
“The respondent was obligated to disclose the existence of status quo orders. In any case, the respondent No.3 made no endeavor to disclose the facts – either by filling an affidavit, or to seek clarifications during the pre- bid meeting. It appears to us that the respondent No.3 has adopted its own self-serving and convenient interpretation of the Declaration, which is contrary to the plain language, and all canons of commercial prudence, equity and fair play,”
“Had the respondent No. 3 been clean and disclosed its blacklisting, or the chequered history of its contracts, it would not have had the opportunity to make a gain of 12.50 crores as profit. The course that commends to us is that respondent No.3 should be disgorged of Rs. 12.50 crores and the said amount should partly go to the petitioner, and mainly ploughed back into the society. We, therefore, direct respondent No.3 to deposit in this Court an amount of Rs.12.50 crores within 4 weeks thereof,”
“We are of the view that the amount of Rs. 12.5 crores must be ploughed back into society.”
“The number of days of „good‟ and „satisfactory‟ air quality level is minuscule,”
“Now that the commercial activities are going back to the pre-covid level, we are on the same path of the air quality becoming „very poor‟ and „severe‟. This requires urgent preventive, adaptive, and mitigative steps to be taken for the purposes of inter-generational equity. We are of the view that this amount of Rs. 12.5 crores should be ploughed back to the society for reducing the air pollution levels.”
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Keywords
Private Company, Installation Of Smog Tower, Blacklisting In Private Company
