HC quashes MIDC circular banning contractor for 1 year | Aurangabad News

Aurangabad: The Aurangabad bench of the Bombay high court recently quashed and set aside an internal circular of the MIDC that banned a contractor from bidding for one year.
The MIDC had floated an e-tender notice for strengthening and asphalting of internal roads in Waluj industrial area. Upon opening of the financial bid, MIDC chief engineer issued communication to Mascot Construction Company that it was the lowest bidder.
It added that an additional performance security deposit of Rs 2.51 crore is to be submitted either through a demand draft from national and scheduled bank or through a Bank Guarantee within eight days.
In January 2020, the company urged the chief engineer to grant it more time. Later that month, the chief engineer reminded the company that the bank guarantee had not been furnished. In February, the firm addressed another letter to the chief engineer seeking more time.
In March, the chief engineer informed the firm that due to its failure to furnish the bank guarantee, the earnest money deposit furnished by it had been forfeited and its bid rejected.
In August, the firm told MIDC that it was still willing to perform in accordance with tender condition. However, the chief engineer sent an email on August 27 that served the order banning Mascot Construction from participating in tenders of MIDC for one year.
The firm through its managing partner Khaja Aminuddin challenged the order in the high court through lawyer Amit A Yadkikar. The petition claimed that this clause was not part of the tender document.
The matter came up before a bench comprising Justices S V Gangapurwala and Shrikant D Kulkarni, who observed that unless the bid is accepted, “Clause 9 relied by respondents (MIDC) to substantiate their action of banning petitioner for one year from participation in the tenders floated by MIDC would not be operative.”