Case Note & Summary
The writ petition was filed by Ram Taranga Solutions Private Limited, a renewable energy company, against NCL India Limited, a public sector enterprise, challenging an order dated 26.02.2024 that blacklisted the petitioner from participating in tenders for two years. The dispute arose from a tender dated 04.05.2023 for setting up Wind Power Projects on a Pan-India basis, which required bidders to submit a Bank Guarantee that had to be verified via the Structured Financial Messaging System (SFMS). The petitioner submitted its bid along with a Bank Guarantee of Rs.1,91,84,000 arranged by two individuals, Ashok Kumar and Varadarajan. The respondent pointed out a typographical error in the Bank Guarantee, and the issuing bank, Federal Bank, acknowledged the error on 26.06.2023. Thereafter, the petitioner discovered it had been defrauded by the two individuals who had provided an improper Bank Guarantee, leading the petitioner to file a police complaint on 10.07.2023. Despite this, the respondent issued a show cause notice on 25.11.2023 and subsequently passed the impugned blacklisting order. The petitioner sought to quash the order and be allowed to participate in future tenders. The court reserved judgment on 24.01.2025 and pronounced it on 25.02.2025. The provided text of the judgment does not include the final decision or reasoning.
Issue of Consideration
Case Details
2025 LawText (MAD) (02) 154
Sathish Parasaran, Kishore Balasubramanian
Ram Taranga Solutions Private Limited
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Nature of Litigation
Writ petition under Article 226 of the Constitution of India challenging an order blacklisting the petitioner from tenders.
Remedy Sought
Quash the impugned order dated 26.02.2024 and direct the respondent to allow the petitioner and its associated companies to participate in future tenders.
Filing Reason
The petitioner was blacklisted for two years based on an alleged improper Bank Guarantee submitted with its bid; the petitioner claimed the irregularity was due to fraud by third parties.
Previous Decisions
The respondent issued a show cause notice on 25.11.2023 and passed the impugned blacklisting order on 26.02.2024.
Issues
Validity of the blacklisting order dated 26.02.2024
Whether the bank guarantee irregularity amounted to misconduct warranting blacklisting
Judgment Excerpts
The respondent issued a tender dated 04.05.2023 for setting up Wind Power Projects on Pan India basis with operation and maintenance for ten years.
As per the tender conditions, any bank guarantee submitted in physical form, must also be verified through the respondent's platform for Structured Financial Messaging System (SFMS), failing which the bid will be summarily rejected.
The petitioner submitted its technical and financial bid as per the terms of tender along with Bank Guarantee for a sum of Rs.1,91,84,000/- which was arranged by one Ashok Kumar and Varadarajan.
Procedural History
Tender issued on 04.05.2023; petitioner submitted bid with Bank Guarantee; typographical error pointed out by respondent and acknowledged by bank on 26.06.2023; petitioner discovered fraud by third parties and filed police complaint on 10.07.2023; respondent issued show cause notice on 25.11.2023; respondent passed impugned blacklisting order on 26.02.2024; petitioner filed writ petition.
Acts & Sections
- Constitution of India: Article 226
