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Non-empanelment due to non-compliance with tender conditions: Patna HC Dismisses CA Firm’s Petition

Case Law Details

TaxGuru Citation
2024 taxguru.in 3213
Case Name
Parik and Company Vs State of Bihar (Patna High Court)
Date of Judgement/Order
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Parik and Company Vs State of Bihar (Patna High Court)

Introduction: The Patna High Court recently dismissed a petition filed by Parik and Company, a Chartered Accountant (CA) firm, challenging their non-empanelment by the State of Bihar. The firm argued that their exclusion was unjust, primarily due to the stipulations outlined in a Notice Inviting Tender (NIT). The court’s decision hinged on the firm’s non-compliance with specific conditions regarding the continuous presence of a branch office in Bihar.

Background and Grounds of the Petition: Parik and Company filed the petition, feeling aggrieved by their non-empanelment as per the NIT issued by the Rural Development Department of Bihar. The NIT, initially released in January 2023, invited applications from eligible CA firms, with the final submission date extended to May 8, 2023. A key requirement was for firms headquartered outside Bihar to maintain a branch office within the state continuously for at least five years, a condition modified slightly by a corrigendum issued on April 27, 2023.

Contentions of the Petitioner: The petitioner argued that the corrigendum, dated after the initial submission deadline, should not retroactively apply to their bid. They contended that, as of April 24, 2023, there was no specific requirement for a five-year certificate, and thus their non-empanelment was unjust. The interim order from another division bench had initially directed the authorities to reconsider the firm’s application based on these arguments.

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Author Info

CA Sandeep Kanoi
Qualification: CA in Job / Business
Company: Taxguru Consultancy
Location: Mumbai, Maharashtra
Articles Published: 19,245

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