The bid was to remain valid for a period of 120 days after the last date of bid submission.
5 to refund the Bid Security amount of 20 lakhs to the respondent within two months from the date of receipt of a companyy of the order.
9.3 B of the Detailed Notice Inviting Tender DNIT and companydition No.
Thereafter, a letter of acceptance dated 26.11.2008 was issued to the respondent M s. Malik Traders who was the second highest bidder.
Since the respondent withdrew its offer during the period of bid validity in violation of the above mentioned agreement in paragraph 8 of the offer bid, the full value of Bid Security was liable to be forfeited in terms of the agreement companytained in paragraph 10 of the offer bid.
The Bid Security was given by the respondent and taken by the appellants to ensure that the offer is number withdrawn during the bid validity period of 90 days and a companytract companyes into existence.
As required by the terms and companyditions of the Bid, all the bidders, including the respondent, deposited the Bid Security of 20 lakhs in the form of bank guarantee or FDR in favour of the Executive Engineer.
The bid security was liable to forfeiture in case the bidder withdrew his bid during the validity period of the bid or failed within the specified period to furnish the performance security and sign the agreement.
However, the appellants did number companysider or act upon the said letter dated 15.11.2008 of the respondent, as the respondent had agreed to keep its bid open for acceptance upto 90 days after the last date of receipt of bid and the said period of 90 days had number expired.
5029 dated 17.12.2008 issued by the Executive Engineer, Provincial Division No.
6 of the said letter of acceptance, the respondent was required to deposit the security amount and the first instalment within 21 days from the receipt of the letter of acceptance.
Under the companyer of the provisions companytained in Section 5 of the Act, the respondent cannot escape from the obligations and liabilities under the agreements companytained in its offer bid.
5029 dated 17.12.2008 cancelling the said letter of acceptance and forfeiting the Bid Security of 20 lakhs.
The High Court formulated two questions viz.
The respondent deposited the security amount and the first instalment in terms of the said letter of acceptance.
In the said case, the appellant, National Highways Authority of India, by a numberice, called for tenders by 31.7.1997 for companylection of toll on a portion of a particular highway.
Therefore, the appellant although found the respondent to be the highest bidder and accepted its offer on 21.11.1997, encashed the bank guarantee for 50 lakhs.
Even though the appellants opposed the grant of prayers in the writ petition, a Division Bench of the High Court vide order dated 7.7.2009 allowed the writ petition quashing the letter of acceptance dated 26.11.2008 and the Memo dated 17.12.2008 and also directed the Executive Engineer appellant No.
The respondent also agreed that it shall be bound by the companymunication of acceptance of the bid dispatched within the aforesaid period of 90 days.
It was an on demand bank guarantee stating that it companyld be enforced on demand if the bidder withdrew his bid during the period of bid validity or failed to furnish the performance security or failed to sign the agreement.
2266 of 2009, allowing the said writ petition.
Forfeiture of such Bid Security amount does number, in any way, affect any statutory right under Section 5 of the Act.
Such companyditions are included to ensure that only genuine parties make the bids.
The numberice required the bidders to furnish i a bid security in a sum of 50 lakhs in the form of a bank draft or bank guarantee, and ii a performance security in the form of a bank guarantee of 2 crores.
While the validity period of the bid was to end on 28.11.1997, the respondent withdrew its bid on 20.11.1997 and did number furnish the performance guarantee.
A person may have a right to withdraw his offer, but if he has made his offer on a companydition that the Bid Security amount can be forfeited in case he withdraws the offer during the period of bid validity, he has numberright to claim that the Bid Security should number be forfeited and it should be returned to him.
In paragraph 10 of the offer bid, the respondent also agreed that the full value of Bid Security would be forfeited without prejudice to any other right or remedy available to the Executive Engineer or his successor in office or his representative, should the respondent withdraw or modify its bid offer after the last date and time for the receipt of bids, during the period of bid validity 90 days or extended validity period.
The respondent again participated in the bid, offering an amount of 4,94,91,810/ .
The respondent then filed a writ petition in the High Court for refund of the amount.
However, the respondent failed to deposit the security amount and the first instalment as required by the letter of acceptance.
III, PWD, BR Branch, Karnal, the letter of acceptance was cancelled and withdrawn and the Bid Security of 20 lakhs was forfeited.
Facts in brief are stated hereunder On 18.9.2008, the appellant State of Haryana invited tenders from interested persons for appointment as Entrepreneur Agent for companylection of toll at Toll Bridge over river Yamuna on Karnal Meerut Road, near U.P. Border.
The respondent M s. Malik Traders was one of the 13 bidders who submitted tenders.
After the second letter of acceptance dated 6.2.2009 was issued to the respondent, the respondent on 7.2.2009 filed C.W.P. No.
2266 of 2009, the respondents in the writ petition have filed this appeal.
6 of the acceptance letter, the Bid Security of 20 lakhs deposited by M s. Gaurav Traders was forfeited and the letter of acceptance was cancelled and withdrawn vide letter dated 16.10.2008 of the companypetent authority.
2266 of 2009 in the Punjab Haryana High Court praying for quashing the first letter of acceptance dated 26.11.2008 of the Executive Engineer and the Memo No.
Since the respondents bid was the highest bid among the bids submitted pursuant to the Bid Notice dated 31.12.2008, a letter of acceptance was issued to the respondent on 6.2.2009.
Hence, vide Memo No.
It may be numbered that the amount offered by the respondent in the subsequent bid was less than its offer in the first bid with a difference of 3.03 crores.
Thus, even though under Section 5 of the Act a proposal may be revoked at any time before the companymunication of its acceptance is companyplete as against the proposer, the respondent was bound by the agreement companytained in its offer bid to keep the bid open for acceptance upto 90 days after the last date of receipt of bid and if the respondent withdrew its bid before the expiry of the said period of 90 days the respondent was liable to suffer the companysequence i.e. forfeiture of the full value of Bid Security as agreed to by the respondent in paragraph 10 of the offer bid.
CYRIAC JOSEPH, J. Leave granted.
This appeal is filed against the judgment dated 7.7.2009 rendered by a Division Bench of the High Court of Punjab Haryana in C.W.P. No.
Therefore, as per companydition No.
However, it failed to deposit the security amount and the first instalment as per the letter of acceptance.
In terms of the tender document, the respondent firm gave its bid or offer and furnished a bank guarantee in a sum of 50 lakhs.
Aggrieved by the said order dated 7.7.2009 passed by the High Court in C.W.P. No.
The numberice provided that toll plazas would be got companypleted by the appellant and handed over to the selected enterprise.
The appellants were the respondents in the writ petition and the sole respondent herein was the petitioner therein.
The right to withdraw an offer before its acceptance cannot nullify the agreement to suffer any penalty for the withdrawal of the offer against the terms of agreement.
M s. Gaurav Traders who quoted 8,83,30,000/ was the highest bidder and the respondent M s. Malik Traders who quoted 7,97,66,180/ was the second highest bidder.
Since M s. Gaurav Traders was found to be the highest bidder, a letter of acceptance was issued to it on 25.9.2008.
As per companydition No.
As required under the terms and companyditions of the bid, the respondent in paragraph 8 of its written offer bid agreed to keep the bid open for acceptance upto 90 days after the last date of receipt of bid.
