w w w . L a w y e r S e r v i c e s . i n



PSS Security Solutions Through its Sole Proprietor v/s Govt. of National Capital Territory of Delhi & Another


Company & Directors' Information:- L & T CAPITAL COMPANY LIMITED [Active] CIN = U67190MH2000PLC125653

Company & Directors' Information:- E 2 E SOLUTIONS PRIVATE LIMITED [Active] CIN = U72200DL2000PTC107313

Company & Directors' Information:- B. P. CAPITAL LIMITED [Active] CIN = L74899DL1994PLC057572

Company & Directors' Information:- B. P. CAPITAL LIMITED [Active] CIN = L74899HR1994PLC072042

Company & Directors' Information:- H AND W CAPITAL PRIVATE LIMITED [Active] CIN = U67120DL1998PTC092955

Company & Directors' Information:- K M CAPITAL LIMITED [Active] CIN = L65910DL1992PLC048421

Company & Directors' Information:- R. L. CAPITAL PRIVATE LIMITED [Active] CIN = U17120MH1992PTC066895

Company & Directors' Information:- E-SOLUTIONS PRIVATE LIMITED [Active] CIN = U30007TN1999PTC043325

Company & Directors' Information:- D S R SOLUTIONS LIMITED [Active] CIN = U72200TG1999PLC032008

Company & Directors' Information:- A. K. CAPITAL CORPORATION PRIVATE LIMITED [Active] CIN = U65993MH2006PTC165749

Company & Directors' Information:- J. K. SOLUTIONS PRIVATE LIMITED [Active] CIN = U74999MH2014PTC257168

Company & Directors' Information:- P H CAPITAL LIMITED [Active] CIN = L74140MH1973PLC016436

Company & Directors' Information:- E-3 SOLUTIONS INDIA PRIVATE LIMITED [Active] CIN = U74910DL1998PTC096512

Company & Directors' Information:- SECURITY CO LTD [Active] CIN = L65929WB1948PLC016992

Company & Directors' Information:- I B CAPITAL PRIVATE LIMITED [Active] CIN = U65993GJ2011PTC065780

Company & Directors' Information:- V A SOLUTIONS PRIVATE LIMITED [Active] CIN = U72200TG2006PTC049266

Company & Directors' Information:- D P SOLUTIONS (INDIA) PRIVATE LIMITED [Strike Off] CIN = U22221DL2000PTC107837

Company & Directors' Information:- I 5 CAPITAL PRIVATE LIMITED [Active] CIN = U65990TN2015PTC101551

Company & Directors' Information:- N Q SOLUTIONS INDIA PRIVATE LIMITED [Active] CIN = U51909OR2009PTC011136

Company & Directors' Information:- S E R CAPITAL PRIVATE LIMITED [Active] CIN = U65921MH1998PTC116812

Company & Directors' Information:- I. S. SOLUTIONS PRIVATE LIMITED [Active] CIN = U30007TG1997PTC028047

Company & Directors' Information:- P. K. A. CAPITAL PRIVATE LIMITED [Active] CIN = U74899DL1995PTC074137

Company & Directors' Information:- L T SOLUTIONS PRIVATE LIMITED [Strike Off] CIN = U72200TG2000PTC033248

Company & Directors' Information:- R S N CAPITAL PRIVATE LIMITED [Strike Off] CIN = U65924HR2012PTC045875

Company & Directors' Information:- A J CAPITAL LIMITED [Active] CIN = U74899DL1995PLC072149

Company & Directors' Information:- L D SOLUTIONS PRIVATE LIMITED [Active] CIN = U51109DL2015PTC286921

Company & Directors' Information:- A S SOLUTIONS PRIVATE LIMITED [Active] CIN = U74140DL2010PTC202208

Company & Directors' Information:- I S P SOLUTIONS INDIA PRIVATE LIMITED [Active] CIN = U72200TZ2001PTC009755

Company & Directors' Information:- S P E-SOLUTIONS PRIVATE LIMITED [Active] CIN = U72300DL2006PTC155569

Company & Directors' Information:- CAPITAL LTD [Active] CIN = U65993WB1956PLC001592

Company & Directors' Information:- G SECURITY (INDIA) PRIVATE LIMITED [Active] CIN = U74920MH2004PTC150235

Company & Directors' Information:- S R SECURITY PRIVATE LIMITED [Active] CIN = U74920MH2005PTC152956

Company & Directors' Information:- S R SECURITY PRIVATE LIMITED [Active] CIN = U74110MH2005PTC152956

Company & Directors' Information:- T X G SOLUTIONS PRIVATE LIMITED [Converted to LLP and Dissolved] CIN = U72200DL2006PTC150671

Company & Directors' Information:- B D SECURITY PRIVATE LIMITED [Active] CIN = U74920JK2006PTC002638

Company & Directors' Information:- H D SOLUTIONS PRIVATE LIMITED [Active] CIN = U72900DL2009PTC194392

Company & Directors' Information:- T AND T CAPITAL PRIVATE LIMITED [Active] CIN = U67120TG2020PTC142533

Company & Directors' Information:- H & K SOLUTIONS PRIVATE LIMITED [Active] CIN = U63040GJ2009PTC059027

Company & Directors' Information:- F A S T SOLUTIONS (INDIA) PRIVATE LIMITED [Active] CIN = U22100MH1989PTC052935

Company & Directors' Information:- J & I SOLUTIONS PRIVATE LIMITED [Active] CIN = U74140DL2012PTC236993

Company & Directors' Information:- N AND S SOLUTIONS PRIVATE LIMITED [Active] CIN = U74210KA1999PTC025555

Company & Directors' Information:- U-TO SOLUTIONS (INDIA) PRIVATE LIMITED [Active] CIN = U72100MH2000PTC130052

Company & Directors' Information:- Z D SOLUTIONS PRIVATE LIMITED [Strike Off] CIN = U72900TN2007PTC062584

Company & Directors' Information:- P I T SOLUTIONS PRIVATE LIMITED [Active] CIN = U72200KL2000PTC014018

Company & Directors' Information:- O AND M SOLUTIONS PRIVATE LIMITED [Active] CIN = U74210OR2005PTC008166

Company & Directors' Information:- R P A S SOLUTIONS PRIVATE LIMITED [Active] CIN = U72200TG2008PTC057538

Company & Directors' Information:- S CAPITAL SOLUTIONS PRIVATE LIMITED [Active] CIN = U67190TG2013PTC091266

Company & Directors' Information:- G L F SOLUTIONS PRIVATE LIMITED [Strike Off] CIN = U67190KL2013PTC035455

Company & Directors' Information:- S P SOLUTIONS PRIVATE LIMITED [Amalgamated] CIN = U72200DL2011PTC213318

Company & Directors' Information:- S. S. G. SOLUTIONS PRIVATE LIMITED [Active] CIN = U72200TG1996PTC023719

Company & Directors' Information:- G I SECURITY PRIVATE LIMITED [Active] CIN = U74140WB1993PTC057724

Company & Directors' Information:- M R CAPITAL PRIVATE LIMITED [Active] CIN = U65921DL1996PTC075492

Company & Directors' Information:- I T SOLUTIONS INDIA PRIVATE LIMITED [Active] CIN = U72200DL1996PTC076426

Company & Directors' Information:- K B SOLUTIONS PRIVATE LIMITED [Strike Off] CIN = U74140PB2011PTC035055

Company & Directors' Information:- H A SOLUTIONS (INDIA) PRIVATE LIMITED [Active] CIN = U72900DL2000PTC104116

Company & Directors' Information:- PSS SOLUTIONS PRIVATE LIMITED [Active] CIN = U74900DL2005PTC134746

Company & Directors' Information:- V. J. L. SOLUTIONS PRIVATE LIMITED [Active] CIN = U74999UP2018PTC109127

Company & Directors' Information:- 1 TO 5 SOLUTIONS PRIVATE LIMITED [Not available for efiling] CIN = U74999AS2020PTC020427

Company & Directors' Information:- C AND C SOLUTIONS (INDIA) LIMITED [Strike Off] CIN = U93000PY1995PLC001144

Company & Directors' Information:- AMP SOLUTIONS LIMITED [Active] CIN = U80302CH2001PLC024420

Company & Directors' Information:- D V M SOLUTIONS LIMITED [Converted to LLP] CIN = U74140DL1999PLC102362

Company & Directors' Information:- M G M CAPITAL LIMITED [Strike Off] CIN = U67120RJ1995PLC009482

Company & Directors' Information:- T S SOLUTIONS PRIVATE LIMITED [Active] CIN = U72200UP2000PTC025406

Company & Directors' Information:- U & F SOLUTIONS PRIVATE LIMITED [Active] CIN = U74999TN2013PTC089891

Company & Directors' Information:- R R SOLUTIONS PRIVATE LIMITED [Active] CIN = U45309BR2008PTC013387

Company & Directors' Information:- B A SOLUTIONS INDIA PRIVATE LIMITED [Active] CIN = U74999DL2006PTC155492

Company & Directors' Information:- R M G SECURITY PRIVATE LIMITED [Strike Off] CIN = U74910TN1997PTC038969

Company & Directors' Information:- G D A SECURITY PVT LTD [Active] CIN = U74899DL1973PTC006424

Company & Directors' Information:- C A AND S SOLUTIONS PRIVATE LIMITED [Active] CIN = U72200AP2000PTC034546

Company & Directors' Information:- U AND U SOLUTIONS PRIVATE LIMITED [Strike Off] CIN = U67200OR2004PTC007651

Company & Directors' Information:- B G S CAPITAL PRIVATE LIMITED [Strike Off] CIN = U74140PB2011PTC034703

Company & Directors' Information:- R A SOLUTIONS PRIVATE LIMITED [Active] CIN = U51101MH2013PTC249132

Company & Directors' Information:- R T W SOLUTIONS PRIVATE LIMITED [Active] CIN = U72200MH2004PTC145773

Company & Directors' Information:- A E T SOLUTIONS PRIVATE LIMITED [Strike Off] CIN = U72200TG2004PTC036640

Company & Directors' Information:- K N P SOLUTIONS PRIVATE LIMITED [Strike Off] CIN = U72300TG2011PTC076036

Company & Directors' Information:- I SOLUTIONS(INDIA) PRIVATE LIMITED [Strike Off] CIN = U72900TN2004PTC052692

Company & Directors' Information:- J L CAPITAL PRIVATE LIMITED [Strike Off] CIN = U67120DL1996PTC079840

Company & Directors' Information:- R V I T SOLUTIONS PRIVATE LIMITED [Strike Off] CIN = U72200DL2005PTC137434

Company & Directors' Information:- J S D SECURITY PRIVATE LIMITED [Strike Off] CIN = U74920DL2009PTC197167

Company & Directors' Information:- R M T SOLUTIONS INDIA PRIVATE LIMITED [Strike Off] CIN = U74210KA2011PTC056861

Company & Directors' Information:- CAPITAL SOLUTIONS(INDIA) PRIVATE LIMITED [Strike Off] CIN = U67190TN2008PTC067755

Company & Directors' Information:- E M C SOLUTIONS PRIVATE LIMITED [Strike Off] CIN = U72200KA1996PTC020112

Company & Directors' Information:- R I SOLUTIONS PRIVATE LIMITED [Strike Off] CIN = U52392WB1999PTC088640

Company & Directors' Information:- N G L SOLUTIONS PRIVATE LIMITED [Strike Off] CIN = U72200KL2001PTC014656

Company & Directors' Information:- L S SOLUTIONS PRIVATE LIMITED [Active] CIN = U67190DL2020PTC371664

Company & Directors' Information:- S P K SOLUTIONS PRIVATE LIMITED [Strike Off] CIN = U72200TZ2003PTC010438

Company & Directors' Information:- 9 I SOLUTIONS PVT LTD [Strike Off] CIN = U72200TG2005PTC048565

Company & Directors' Information:- S G SOLUTIONS PRIVATE LIMITED [Active] CIN = U74999BR2008PTC013392

Company & Directors' Information:- K P N SOLUTIONS PRIVATE LIMITED [Strike Off] CIN = U74900KA2011PTC057705

Company & Directors' Information:- V N SOLUTIONS PRIVATE LIMITED [Strike Off] CIN = U74900DL2009PTC195421

Company & Directors' Information:- R. K. SOLUTIONS PRIVATE LIMITED [Active] CIN = U74140DL2007PTC161367

Company & Directors' Information:- S M SECURITY PRIVATE LIMITED [Strike Off] CIN = U74899DL1996PTC007805

Company & Directors' Information:- J K B SOLUTIONS INDIA PRIVATE LIMITED [Strike Off] CIN = U74900DL2015PTC284162

Company & Directors' Information:- J AND J SECURITY PRIVATE LIMITED [Strike Off] CIN = U74920DL2004PTC128735

Company & Directors' Information:- S R SOLUTIONS PRIVATE LIMITED [Active] CIN = U72200HR2000PTC055629

Company & Directors' Information:- B E SOLUTIONS PRIVATE LIMITED [Active] CIN = U72200KA2005PTC037127

Company & Directors' Information:- G R K SOLUTIONS PRIVATE LIMITED [Strike Off] CIN = U72900TG2002PTC039029

Company & Directors' Information:- G N SOLUTIONS PRIVATE LIMITED [Active] CIN = U65993PN2008PTC132031

Company & Directors' Information:- J .S .SOLUTIONS PRIVATE LIMITED [Active] CIN = U72900PB2007PTC030855

Company & Directors' Information:- W B SECURITY PRIVATE LIMITED [Strike Off] CIN = U74920RJ2012PTC040905

Company & Directors' Information:- SOLUTIONS @ PANORAMA TRAVEL PRIVATE LIMITED [Strike Off] CIN = U63040MH2010PTC199347

Company & Directors' Information:- A.N.D SOLUTIONS PRIVATE LIMITED [Active] CIN = U74999MH2013PTC244625

Company & Directors' Information:- G T I SECURITY PRIVATE LIMITED [Active] CIN = U74999MH2013PTC251541

Company & Directors' Information:- J. B. C. SECURITY PRIVATE LIMITED [Active] CIN = U74999MH2017PTC302126

Company & Directors' Information:- V & M SOLUTIONS PRIVATE LIMITED [Active] CIN = U74999PN2014PTC150848

Company & Directors' Information:- G K SOLUTIONS PRIVATE LIMITED [Active] CIN = U72900MH2004PTC149891

Company & Directors' Information:- G K A SOLUTIONS PRIVATE LIMITED [Active] CIN = U72900MH2004PTC150210

Company & Directors' Information:- H. R. SOLUTIONS INDIA PRIVATE LIMITED [Strike Off] CIN = U74120TG2012PTC081581

Company & Directors' Information:- 5 S SECURITY SOLUTIONS PRIVATE LIMITED [Under Process of Striking Off] CIN = U74120TG2014PTC093594

Company & Directors' Information:- R S SECURITY SOLUTIONS PRIVATE LIMITED [Active] CIN = U74120TG2016PTC103782

Company & Directors' Information:- S A E-SOLUTIONS PRIVATE LIMITED [Active] CIN = U72200WB2012PTC181964

Company & Directors' Information:- K. S. E-SOLUTIONS PRIVATE LIMITED [Strike Off] CIN = U74999WB2012PTC185025

Company & Directors' Information:- O S SOLUTIONS PRIVATE LIMITED [Strike Off] CIN = U93000JK2012PTC003733

Company & Directors' Information:- B AND P SOLUTIONS PRIVATE LIMITED [Active] CIN = U24100CH2015PTC035482

Company & Directors' Information:- PSS INDIA PRIVATE LIMITED [Strike Off] CIN = U74900CH2012PTC034138

Company & Directors' Information:- A T SOLUTIONS PRIVATE LIMITED [Strike Off] CIN = U72900CH2009PTC031621

Company & Directors' Information:- R AND D SOLUTIONS PRIVATE LIMITED [Strike Off] CIN = U52392CH2010PTC032232

Company & Directors' Information:- G S L SOLUTIONS PRIVATE LIMITED [Strike Off] CIN = U72300DL2007PTC164747

Company & Directors' Information:- F K SOLUTIONS PRIVATE LIMITED [Strike Off] CIN = U72900DL2008PTC186101

Company & Directors' Information:- B. R. SOLUTIONS PRIVATE LIMITED [Active] CIN = U74140DL2002PTC116699

Company & Directors' Information:- G. M. S E-SOLUTIONS PRIVATE LIMITED [Strike Off] CIN = U74140DL2012PTC235662

Company & Directors' Information:- A N S SOLUTIONS PRIVATE LIMITED [Strike Off] CIN = U74140DL2012PTC245060

Company & Directors' Information:- S & T SOLUTIONS PRIVATE LIMITED [Strike Off] CIN = U74140DL2013PTC247089

Company & Directors' Information:- M A SOLUTIONS PRIVATE LIMITED [Active] CIN = U74140DL2014PTC265618

Company & Directors' Information:- G. N. 9. SECURITY SOLUTIONS PRIVATE LIMITED [Active] CIN = U74140DL2014PTC268821

Company & Directors' Information:- S A N SOLUTIONS PRIVATE LIMITED [Active] CIN = U74999DL2002PTC117534

Company & Directors' Information:- AT SECURITY PRIVATE LIMITED [Strike Off] CIN = U74999DL2012PTC234962

Company & Directors' Information:- O J S G SOLUTIONS PRIVATE LIMITED [Strike Off] CIN = U74999DL2014PTC267923

Company & Directors' Information:- AMP SECURITY PRIVATE LIMITED [Active] CIN = U74999DL2017PTC316440

Company & Directors' Information:- I G SOLUTIONS PRIVATE LIMITED [Active] CIN = U70109DL2012PTC244223

Company & Directors' Information:- S N R SOLUTIONS PRIVATE LIMITED [Active] CIN = U72100DL2011PTC216142

Company & Directors' Information:- P G I T SOLUTIONS PRIVATE LIMITED [Active] CIN = U72200DL2005PTC139469

Company & Directors' Information:- H R SOLUTIONS PRIVATE LIMITED [Strike Off] CIN = U74899DL1995PTC073143

Company & Directors' Information:- A 2 Z SOLUTIONS PRIVATE LIMITED [Strike Off] CIN = U74899DL2001PTC109658

Company & Directors' Information:- L N T SECURITY PRIVATE LIMITED [Strike Off] CIN = U74899DL2001PTC109776

Company & Directors' Information:- VERSUS SECURITY PRIVATE LIMITED [Strike Off] CIN = U74900DL2009PTC195274

Company & Directors' Information:- A P D SOLUTIONS PRIVATE LIMITED [Strike Off] CIN = U74900DL2013PTC249969

Company & Directors' Information:- S O L SECURITY PRIVATE LIMITED [Strike Off] CIN = U74920DL2002PTC115968

Company & Directors' Information:- H S SECURITY PRIVATE LIMITED [Strike Off] CIN = U74920DL2004PTC127249

Company & Directors' Information:- M P S SECURITY PRIVATE LIMITED [Under Process of Striking Off] CIN = U74920DL2007PTC169952

Company & Directors' Information:- V R A A P SOLUTIONS PRIVATE LIMITED [Strike Off] CIN = U74950DL2014PTC271337

Company & Directors' Information:- R - N - A E - SOLUTIONS PRIVATE LIMITED [Strike Off] CIN = U74900KA2008PTC045680

Company & Directors' Information:- V S T SOLUTIONS PRIVATE LIMITED [Strike Off] CIN = U74900KA2010PTC053117

Company & Directors' Information:- A & E-SECURITY SOLUTIONS PRIVATE LIMITED [Active] CIN = U72200KA2007PTC044758

Company & Directors' Information:- V SOLUTIONS PRIVATE LIMITED [Strike Off] CIN = U72200KA2010PTC052832

Company & Directors' Information:- N R L SOLUTIONS PRIVATE LIMITED [Strike Off] CIN = U72900KA2013PTC069148

Company & Directors' Information:- S V SOLUTIONS PRIVATE LIMITED [Strike Off] CIN = U74140GJ2007PTC051390

Company & Directors' Information:- M AND G SECURITY PRIVATE LIMITED [Active] CIN = U74920HR2020PTC087465

Company & Directors' Information:- I S S SECURITY PRIVATE LIMITED [Strike Off] CIN = U74920DL2000PTC103574

Company & Directors' Information:- A & A SOLUTIONS PRIVATE LIMITED [Strike Off] CIN = U72200PN2008PTC131887

Company & Directors' Information:- T N B SOLUTIONS PRIVATE LIMITED [Active] CIN = U72900MH2007GAT171606

Company & Directors' Information:- H F SOLUTIONS PRIVATE LIMITED [Strike Off] CIN = U72300DL2007PTC168577

Company & Directors' Information:- K V M SOLUTIONS PRIVATE LIMITED [Strike Off] CIN = U72900DL2008PTC180136

Company & Directors' Information:- A R C O N SOLUTIONS PRIVATE LIMITED [Strike Off] CIN = U72200KL2007PTC020421

Company & Directors' Information:- T & T SOLUTIONS PRIVATE LIMITED [Strike Off] CIN = U72900GJ2007PTC051103

    W.P. (C). No. 11344 of 2017 & CM. APPL. No. 46363 of 2017

    Decided On, 08 May 2019

    At, High Court of Delhi

    By, THE HONOURABLE MR. JUSTICE VIBHU BAKHRU

    For the Petitioner: Tanuj Khurana, J.S. Narula, Advocates. For the Respondents: Sanjoy Ghose, ASC, Urvi Mohan, Advocates.



Judgment Text


1. The petitioner has filed the present petition, inter alia, impugning a letter dated 29.11.2017 passed by the Director General Health Services (respondent no.2), whereby the performance security furnished by the petitioner is forfeited. In addition, the petitioner also prays that performance security in the sum of Rs.36,46,000/-, which e lying with respondent no.2 for due performance of the contract, be refunded/released.

2. The controversy in the present petition relates to a contract for providing uniformed Nursing Orderly/Attendant Services to various dispensaries and establishments under the Directorate of Health Services for a period of one year. A notice inviting tenders (NIT) for providing such services was issued by respondent no.2 on 16.06.2015.

3. The petitioner responded to the said tender and furnished a Pre- Qualification Bid Form on 23.09.2015. The petitioner?s bid was found to be the lowest (L1) and the petitioner was called upon to provide the detail of business model according to the rates quoted by it.

4. It is relevant to note that the petitioner had submitted a security (EMD) in the sum of Rs.5,86,000/-, in the form of a Fixed Deposit Receipt (FDR), along with its bid.

5. On 29.01.2016, respondent no.2 issued a letter to the petitioner confirming that the bid submitted by the petitioner had been approved by the Competent Authority. The said letter also indicated the formalities for operation of the contract. In addition, the petitioner was called upon to submit (i) letter of acceptance; (ii) performance security for an amount of Rs.30,46,00/- as per the terms and conditions of the Tender Documents; and (iii) the list of workers and supervisors. The said letter also indicated that the said compliances were necessary for execution of the agreement as stipulated in the Tender Documents.

6. In response to the aforesaid letter, the petitioner submitted a letter of acceptance on 01.02.2016. Thereafter, on 02.02.2016, respondent no.2 reiterated its request to submit a list of workers and supervisors and the performance security in terms of the tender. Since the EMD of Rs.5,86,000/- submitted by the petitioner alongwith the bid had not been returned, the petitioner requested that the same be refunded in order for the petitioner to furnish the Performance Guarantee of an amount of Rs.30,46,000/-.

7. Admittedly, the said EMD was returned to the petitioner to enable the petitioner to extend the validity of the FDR for the same to be accepted against the performance security. In addition, the petitioner also submitted a bank guarantee in the sum of Rs.24,60,000/- under cover of its letter dated 15.02.2016, being the balance amount of performance security. In the aforesaid manner, the petitioner complied with the requirement of furnishing the performance security of Rs.30,46,000/-: Rs.24,60,000/- as a bank guarantee and Rs.5,86,000/- in the form of FDR.

8. Before the Agreement could be entered into, respondent no.2 received information that the petitioner had collected money from the prospective workers. In view of the aforesaid allegation, the petitioner was called upon to submit an explanation for collecting deposits from the prospective workers and was also directed to refund the amount and submit proof of the same.

9. In compliance with the aforesaid demand, on 19.02.2016, the petitioner filed an undertaking with respondent no.2 affirming that it had returned back the deposits collected from prospective workers. This letter was followed by another communication dated 23.02.2016 calling upon the petitioner to submit an affidavit, regarding refund of the payments made to all prospective workers as per the lists submitted by the petitioner on 08.02.2016. Admittedly, this was also complied with by the petitioner.

10. Notwithstanding the above, on 04.04.2016, respondent no.2 issued a show cause notice once again calling upon the petitioner to furnish an explanation from the petitioner for collecting the money from the prospective workers. The petitioner was further called upon to show cause as to why the offer letter should not be cancelled and the performance security be not forfeited.

11. The petitioner responded to the said show cause notice disputing the allegations made against it. The petitioner also requested that the performance security not be forfeited and the contract should be awarded to the petitioner. The petitioner’s request was not acceded to.

12. Since the petitioner did not receive any further information in respect of the said show cause notice, the petitioner filed a writ petition –W.P. (C) 10065/2017 captioned M/s PSS Security Solutions Sole Proprietor v. Govt. NCT of Delhi & Anr – before this Court. The said petition was disposed of by an order dated 14.11.2016 while recording the submission made on behalf of the respondents that a speaking order would be passed within a period of six weeks from that date.

13. In compliance with the statement made before the Court, the respondents passed an order dated 29.11.2017, which is impugned in the present petition.

14. The principal controversy involved in the present petition is whether the respondents are entitled to forfeit the performance security. It is contended on behalf of the petitioner that since the Agreement was not executed with the petitioner, the action of the respondents to forfeit the performance security is unsustainable.

15. The petitioner had explained that it had collected funds from various workers in order to ensure that the said workers join their duties as assigned to them.

16. Insofar as the petitioner?s explanation regarding collection of money from the prospective workers is concerned, this Court is not inclined to interfere with the view expressed by the respondents. Clearly, the petitioner was not entitled to collect any sums or deposits either as security or as an insurance from the said prospective workers that they would report for duty as may be assigned. In view of the above, the only limited question that arises for consideration is regarding forfeiture of the performance security.

17. It is an admitted case that a definitive agreement was not entered into between the parties. In view of the above, there was no occasion for the petitioner to perform the contract. It is relevant to note that by the letter dated 29.01.2016, the petitioner was called upon to submit various documents and performance security in the sum of Rs.30,46,000/ in order that an agreement could be executed. It is seen that the said letter was also not in conformity with the terms and conditions as stipulated in the Tender Documents inasmuch as the performance security was required to be furnished only upon entering into the agreement. This is evident from Clause 17 of the Tender Documents. The relevant sub-clauses of Clause 17 are set out below:-

“17. Award of Contract:-

17.1. Award of the contract will be made to the successful evaluated bidder whose bid has been found to be responsive and who is eligible and qualified to perform the contract satisfactorily as per the terms and conditions incorporated in the bidding document.

17.2. The Authority / Department will communicate the successful bidder by facsimile confirmed by letter transmitted by registered post that his bid has been accepted. This letter (hereinafter and in the condition of contract called the “Letter of Offer”) shall prescribe the amount at which the contractor will be paid in consideration of the execution of services by the contractor as required in the contract.

17.3 The successful bidder will be required to execute an Agreement in the form specified in Annexure-V within a period of 14 days from the date of issue of Letter of Offers of department/DHS.

17.4 The successful bidder shall be required to furnish Performance Security within 14 days of issue of „Letter of Offer? for an amount equal to 10% of the contract value in the form of Account Payee DD or Fixed Deposit Receipts, or Bank Guarantee from a nationalized bank in an acceptable form (Annexure-VI) in favour Directorate of Health Services. The Performance Security shall remain valid for a period of sixty days beyond the date of completion of all contractual obligations. In case the contract period is extended further, the validity of Performance Security shall also be extended by the contractor accordingly.

17.5. Failure of the successful bidder to comply with the requirements of above clauses shall constitute sufficient grounds for the annulment of the award and forfeiture of Performance Security.”

18. It is contended by Mr. Ghose, learned counsel appearing for the respondents that it was not necessary that a formal agreement be entered into for the contract to be effective. However, it is not disputed that in terms of Clause 17.3 of the Tender Documents, a successful bidder was required to execute an agreement in the form as specified within a period of 14 days from the issue of letter of offer. This is not an empty formality but was considered essential to bind the parties to their respective obligations.

19. It is seen that the respondents had consciously refrained from executing the Agreement, as it is apparent that the respondents did not wish to proceed further until a decision was taken in respect of the allegations levelled against the petitioner. The clear import of their actions is that the respondents did not want to enter into a definitive contract with the petitioner.

20. The Tender Documents also provided that if the bidder fails to enter into the agreement, the bid security furnished by the bidder would be forfeited. This is clear from Clause 7.6 of the Tender Documents, which is set out below:-

“7. Earnest Money Deposit (EMD)

xxxx xxxx xxxx xxxx

7.6 The EMD may be forfeited:

a. If the bidder withdraws or amends its bid or impairs or derogates from the bid in any respect within the period of validity of its bid, or

b. In case of a successful bid, if the Bidder fails;

i. to sign the Contract, or

ii. to furnish performance security or

iii to sign and return the duplicate copy of the letter of award within prescribed time.”

21. In the present case, there is no failure on the part of the petitioner to enter into the agreement. Although, the petitioner was ready and willing to perform the contract, however, the work order was not issued to the petitioner and he was not called upon to deploy any workers despite the petitioner sending various reminders seeking instruction for deployment of workers. It is the respondents? contention that since the definitive agreement was not executed between the parties and allegations made against the petitioner were under consideration, the petitioner was not called upon to perform the contract. Clearly, in view of this position, the question of forfeiting the performance guarantee does not arise.

22. Mr. Sanjoy Ghose, learned counsel appearing for the respondent contended that the agreement was not entered into on account of the allegations made against the petitioner which were found to be merited. In the circumstances, the petitioner itself was responsible for non-execution of the contract of the defective agreement. He submitted that once having discovered that the petitioner had accepted deposits from prospective workers, the respondents could not be expected to enter into a contract with the petitioner.

23. Mr. Khurana, the learned counsel appearing for the petitioner disputes the above. Nonetheless, he submits that to put a quietus to the controversy the petitioner would accept the respo

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nsibility for failure to enter into a definitive agreement. He submits that the consequence of failure to enter into an agreement is forfeiture of EMD in terms of Clause 7.6 of the Tender Documents and the petitioner is willing to suffer the same, however, the balance security is required to be released to the petitioner. 24. In view of the above, without going into the question whether the EMD could be forfeited in this case, it would be apposite to direct respondent no.2 to limit the forfeiture to a sum equivalent to the EMD. This is in view of Mr. Khurana?s statement that the petitioner accepts the responsibility for not entering into a definitive agreement. Thus, the respondents would be well within their right to forfeit an amount equivalent to the EMD – a sum of Rs.5,86,000/-. However, the respondents cannot be permitted to forfeit the balance performance security. In view of the above, the respondents may encash the FDR of Rs.5,86,000/-; but, the original performance bank guarantee in the sum of Rs.24,60,000/- is directed to be returned to the petitioner within a period of one week. 25. The petition is disposed of in the aforesaid terms. The pending application is also disposed of. 26. Order dasti under signatures of the court master. Petition disposed of.
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