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sc32 Directorate-of-Logistics-Vs-Almighty-Techserve SPECIAL LEAVE PETITION (C) DIARY NO. 1321 OF 2020

Directorate-of-Logistics-Vs-Almighty-Techserve SPECIAL LEAVE PETITION (C) DIARY NO. 1321 OF 2020

Circular No.15 /15/2017 – GST
hc124 Phonographic Performance … vs Reliance Broadcast Network … on 6 January, 2022
60-21-2017 Rate

NON­REPORTABLE

IN THE SUPREME COURT OF INDIA

CIVIL APPELLATE JURISDICTION

SPECIAL LEAVE PETITION (CIVIL) NO.                    OF 2020

(@SPECIAL LEAVE PETITION (C) DIARY NO. 1321 OF 2020)

Commissioner, Directorate of Logistics                    …Petitioner(s)

Versus

M/s. Almighty Techserv, Proprietor

Mr. Manish Dalmia & Anr.

                  …Respondents(s)

O R D E R

Deepak Gupta, J.

Delay condoned.

2. The Central Board of Excise and Customs (CBEC), through

the   Directorate  of   Logistics   floated  an  e­tender   for   supply,

installation and maintenance of 74 videoscopes at various field Signature Not Verified

D16a:t1e4::24022Iformations of CBEC.  Various bids were received.  The tender was0S.T02.28

Re ason: awarded in favour of M/s. ASVA Power Systems India Pvt. Ltd.

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The  award   of  this  tender   was  challenged  by   the  unsuccessful

bidder  M/s.   Almighty  Techserv   on  various   counts.     The   High

Court vide impugned judgment has held that the award of tender

in favour of M/s. ASVA Power Systems India Pvt. Ltd.  is illegal

and according to the calculation of the High Court, the tender of

the writ petitioner should have been treated as the lowest tender

and  the   loss  caused   to   the   Government   is   roughly  about  63

lakhs.  The order of the High Court has been challenged by the

Department as well as by M/s. ASVA Power Systems India Pvt.

Ltd.

3. At this stage, we are only dealing with the issue of interim

relief.     Mr.  Aman  Lekhi,  learned   Additional  Solicitor   General

appearing   for  the   Department   urges   that   74   videoscopes   are

urgently  required  by  the  Department.    He   submits   that   the

judgment of the High Court is wholly incorrect.  He also submits

that  since   these  equipments   are   urgently   required   by   the

Department and have already been imported into India and are

ready for installation, the order of the High Court be stayed. 

4. Shri K.V. Viswanathan, learned senior counsel appearing for

M/s.   ASVA  Power   Systems   India  Pvt.   Ltd.    has  not  only

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supported the arguments of Mr. Lekhi, but has also highlighted

the fact that the tender of his client was the lowest tender since it

was   inclusive  of  all  customs  charges   and   that   the   High   Court

erred  in holding  that the  landing  charges could not   have been added to the bid price of M/s. Almighty Techserv. 

5. On the other hand, Mr. Gopal Sankaranarayanan, learned

senior counsel submits that the judgment of the High Court is

absolutely   correct.    There   is   no  error   in  the  same.    He  also

submits   that  the   successful   bidder   has   made   various  false

statements in the High Court from time to time and therefore, is

not entitled to any discretionary relief. 

6. At this stage, we are not going into the merits of the case

which   will   require   detailed  hearing.    We,  however,  cannot   lose

sight of the fact that the tender in question was floated in the

year 2018.  The High Court has cancelled the tender and ordered

re­tender.  The tender has not been awarded in favour of M/s.

Almighty   Techserv.  Fresh   tendering  may  lead to  long  delay  in

procuring all these videoscopes which are urgently   required by

customs authority to scan the imported goods.  If a fresh tender

for supply of videoscopes is floated we are not even sure whether

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the Government will gain or lose in monetary terms.  In our view,

public   interest   requires   that   the  Government   be   permitted   to

procure   the  videoscopes  from   M/s.   ASVA  Power   Systems  India

Pvt. Ltd. and we permit the Department to do so.  However, we

direct that out of the payment to be made to M/s. ASVA Power

Systems India Pvt. Ltd., a sum of Rs.63 lakhs shall be deducted

and  orders   with  regard  to  that   amount  shall  be  passed   after

hearing the parties in detail at the time of final hearing.  In case

M/s. ASVA Power Systems India Pvt. Ltd., insists on full payment

at  this   stage  then  there   shall  be   no   interim   stay  and   the Department will have to float fresh tender.

7. The interim relief is granted in the aforesaid terms.

……………………….J. (Deepak Gupta)

………………………..J. (Aniruddha Bose)

New Delhi

February 28, 2020

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