Patna HC dismisses Petition on CA Firm’s Non-Empanelment due to Non-Compliance with NIT Conditions [Read Order]

In a recent ruling the Patna High Court has dismissed the petition regarding a Chartered Accountant ( CA ) firm's non-empanelment due to non-compliance with Notice Inviting Tender ( NIT ) conditions.

The petitioner is aggrieved with his non-empanelment, as per a Notice Inviting Tender ( NIT ).

Mr. Diwakar Prasad Singh, representing petitioner submitted that interim order passed on 08.11.2023 by another Division Bench. As per the interim order, the Judges noted that invited applications from eligible Chartered Accountant Firms and that bids were to be submitted with necessary enclosures to reach the Secretary, Rural Development Department, Government of Bihar before 3:00 p.m. on 24.04.2023, whereas Corrigendum-II is dated 27.04.2023. Corrigendum-II is not applicable to the case in hand for the reason that as on 24.04.2023 there was no prescription of 5 year certificate, is the contention raised. This was the specific ground on which the Division Bench directed the concerned authority to reconsider the petitioner’s name for empanelment.

Mr. Vinay Kirti Singh representing the respondent, however, points out that the Corrigendum did not modify the condition which the petitioner failed to satisfy, which also led to disqualification. The Notice Inviting Tender is produced which was in January 2023. The last date of submission of tenders was on 08.04.2023, which was extended to 08.05.2023. The Corrigendum was issued on 27.04.2023. The specific ground on which the petitioner’s firm has been disqualified is the fact that they have not proved that they had a Branch Office within the State of Bihar for the last 5 years.

Further also pointed out from the counter affidavit that the disqualification was made on 06.06.2023. Annexure-D produced along with Supplementary Counter Affidavit dated 29.11.2023 indicates the specific reason for disqualification of the petitioner who figures at Serial No.94. The reason stated is “Proposal has not been evaluated due to the last five years FCC has not been attached.” The petitioner obviously had produced a Firm Constitution Certificate evidencing their presence in Bihar for only the past one year.

The bench has looked at the NIT which indicates; in the pre-evaluation criteria of empanelment of Chartered Accountant Firms at clause (6) (b) relating to the head office of CA firms not situated in Bihar. It is specified that if CA firms applying under the tender has its Head Office out of the State of Bihar, but has a branch office in Bihar, such Branch Office must be situated continuously in Bihar since more than 5 years (as per ICAI Records) and such branch must be registered under GST laws in Bihar, for a minimum 3 years i.e. since last 3 financial years on the date of publishing of RFP and TOR and have bank accounts of the firm in Bihar. Such branches must also submit bank statements of 12 months of the bank account of the firm in Bihar, as stipulated.

The division bench comprising Justice K. Vinod Chandran, and Justice Harish Kumar noticed even the original NIT contained the stipulation that the branch office should have been working for the last 5 years, so the date of submission of tender was not relevant. Accordingly, no reason to entertain the writ petition and dismiss the same.

To Read the full text of the Order CLICK HERE

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