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Admitting the mistake, the company approached the department to correct the mistake, but instead of allowing the correction, the Superintending Engineer, Haryana PWD (B&R) Branch, Bhiwani, intimated that the work has already been allotted to the company at Rs 45. The company, then, requested the Secretary, PWD (B&R), to look into the matter. In response, much to the dismay of the company, it was informed by the department that its bank guarantee, amounting to Rs 34 lakh, was being forfeited.
The company, SAB Industries, moved the Punjab and Haryana High Court seeking release of its bank guarantee and action against the department. The High Court not only slapped a penalty of Rs 50,000 on the department but also ordered for release of the bank guarantee.
SAB Industries tendered its bid for the construction of roads in the year 2007, along with bank guarantee of Rs 34.28 lakh towards earnest money and Rs 10,000 as bid money.
After submitting the tender, it came to the notice of the company that though the rates for an item were correctly mentioned in figures as Rs 45,000, but the rate in words was inadvertently mentioned as Rs forty five only. Defending itself, the department, citing rules, took the stand that when there is a discrepancy between the amount in figures and in words, the amount in words will govern.
Disapproving the stand taken by the department, the division bench, comprising Justice J S Khehar and Justice Nirmaljit Kaur, held that “the stand of the department is duly misconceived and misplaced. It is clear that the mistake was an error but it was a bonafide error amounting to clerical and typographical error. The difference in Rs 45,000 and Rs 45 is so huge that to have accepted the rate as Rs 45 only is on the face of it unreasonable, unfair and ridiculous. The very figure of 45 in comparison to Rs 45,000 is a freak number and cannot be feasible”.
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