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G.V. RAMANA REDDY
DyCE/Works/CN/BNC
Joined:
No. of
Replies: 16
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 Posted:
Sat Jul 21, 2007 9:58 am |
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In a recent case , the high court upheld the decision of the arbitrary tribunal and dismmissed the railways petition of arbitration tribunals award of a claim to refund the vitiation amonut ( Rs 30 lakhs) - now on onwards VITAMT - recevoered in a contract of value Rs 1.90 cr . Of course as it is normal in many contract cases there were several defaults by railway like change of drawing layout, not giving revised drawings in time , etc) .
However as contract envisaged a clear cut vitiation clause ( that in the venet of vitiation , payment at lowest of 1st,2nd,3rd lowest eligleble tenderred will be made) , the court order directing release of VITAMT tantamounts to that clauses of GCC, contract conditions etc which become EXCEPTED MATTERS can be challeged as these are against principles of natural justice .
Viatiation occurs only due to revision of quantities - and in majority of the cases it is due to railways poor planning before tendering . A tenderer quotes rates for several items of contract considering his potential of resources at his command to put effectively & economically to nations advantage and should normally be unconcerned about the rates what other bidders quote . When vitiiation is resulting due to one paties failure to abide by the schedule of quantiites - holding other party resposnsible annd penalising for no fault of that party is against priniclpels of natural justuice .
in the light of above , it is opined that the directives of railway Board (RB) on vitatiation need revision . |
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Hansraj Sharma
Sr System Manager
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No. of
Replies: 354
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Sat Jul 21, 2007 12:00 pm |
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Are there any instructions on VITIATION ? |
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SHIV KUMAR
GM(Con)
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No. of
Replies: 323
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| Posted:
Sun Jul 22, 2007 12:58 pm |
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Yes,there is a reference to the term "vitiation " in Para 1268 of Engg. Code which may be referred to for its proper appreciation and application. |
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V. Natarajan
AEN(TM)CCG
Joined: May 02, 2005
No. of
Replies: 1236
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| Posted:
Mon Jul 23, 2007 9:42 am |
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One cannot definately recover the vitiation amount from the contractor and putting such tender conditions is illlogical.
THe amount of vitiation has to be treated as a single tender and dealt accordingly. |
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