Silppi Constructions Contractors Vs Union of India (Kerala High Court)
The writ petitions were filed by a partnership firm in connection with a tender invited for construction of residential apartments to provide “Married Accommodation for Sailors” at Kochi. The tenders, issued under a two-bid system, involved estimated costs of Rs.53 crores and Rs.72 crores. The petitioner submitted its technical and financial bids in accordance with the tender conditions, including required documents and demand drafts towards tender cost and EMD.
Read SC Judgment in this case: SC Upholds Tender Rejection Due to Ineligibility Under ‘SS’ Class Criteria
After submission, the petitioner found that its Technical Bid had been rejected on 28.03.2019 on the ground “Does not meet the criteria.” The rejection was based on a Work Load Return of “SS Class” contractors for the quarter ending September 2018. The remarks referred to slow progress in work executed at CE Chennai Zone and cancellation of a contract at CE (NW) Kochi Zone. The remarks related to M/s. Silppi Realtors & Contractors Pvt. Ltd., a private limited company in which some partners of the petitioner firm had been directors.
The petitioner contended that it and M/s. Silppi Realtors & Contractors Pvt. Ltd. were separate legal entities. It argued that the adverse remarks in the Work Load Return were incorrectly attributed to it. The petitioner sought reconsideration under the relevant clause of the tender conditions and requested modification of the remarks. It also asserted that its partners were not directors of the private limited company at the relevant time. However, the appeal before the second respondent was rejected.
