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Showing posts with the label irregularity

For every minor irregularity, a tender is not to be cancelled

In M/s Singh Caterers & Vendors & Anr. v. Indian Railways Catering And Tourism Corporation Ltd., writ petition has been filed challenging termination letter passed by Respondent-IRCTC terminating temporary license awarded to Petitioners for management of On Board Catering Services in Train on ground that, Petitioners had failed to accept award of temporary license and had not paid the security deposit and license fee within stipulated time. Respondent in terms of Clause 4.8 of tender document also debarred Petitioners from participating in future projects of Respondent, IRCTC for a period of one year and forfeited Standing Earnest Money Deposit (SEMD) of Rs.3 lakhs. High Court is of view that cutting/overwriting in present case is not a violation of a mandatory condition and is not material as there is no ambiguity or discrepancy in bid amount. Petitioners bid despite cutting/overwriting clearly mentions the revised bid amount. In fact, revised bid amount has been mention...

Curable defect and irregularities should not defeat justice

The Supreme Court has stated that procedural defects and irregularities, which can be cured, should not stand in the way of justice, in a case of cheque bouncing. In this case, Haryana State Coop Supply and Marketing vs Jayam Textiles, the federation supplied cotton bales to the company. The four cheques in payment for the purchase bounced for want of sufficient funds. The federation filed a complaint under the Negotiable Instruments Act. The magistrate dismissed it on the ground that the federation had not produced the authorisation of its board of directors to the official who filed the complaint. The federation appealed to the Madras High Court, but it dismissed the appeal again on the ground that the person who filed the complaint had no proper power of attorney. On appeal, the Supreme Court held that the courts below were wrong for insisting on technicalities. It remitted the case to the trial court where the federation can show the authorisation which it had failed to do earlie...