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Judgment
Prathiba M. Singh, J
CM APPL. 29369/2020 in W.P.(C) 3362/2020
This hearing has been held through video conferencing.
The present application has been moved on behalf of the Life Insurance Corporation of India (hereinafter, "LIC") seeking waiver of deposit of 5% performance security as insisted upon by the GNCTD vide letter dated 16th November, 2020. LIC, as also the New India Assurance Company Limited (hereinafter, "NIACL"), which has appeared today before this Court, seek waiver.
Under the Notice Inviting Tender (hereinafter, "NIT"), bidders were expected to deposit performance security of 5% of the value of the contract. Thereafter, once the financial and technical bids were open, bank guarantees were to be submitted by the successful bidders to secure the premium to be paid.
On the last date, both LIC and NIACL were given a waiver from submitting the bank guarantee considering that they are both State-owned Corporations. However, it appears that the GNCTD is now insisting on 5% performance security in terms of the NIT.
In the present case, as is clear from the various orders passed by this Court, the stage of NIT has been crossed long back. The position currently is that LIC and NIACL have been held to be the successful bidders for issuing the life insurance and Medi-claim policies in favour of all the eligible and verified lawyers in terms of the order dated 7th October, 2020. Thereafter, there was some miscommunication with LIC which resulted in the passing of the order dated 11th November, 2020.
Subsequent to the said order, letter dated 16th November, 2020 has been issued which has prompted the present application by LIC. The counsels for LIC and NIACL, as also their respective officers Mr. Hemant Buch and Mr. Jitender Mehndiratta have appeared before this Court. LIC relies upon Section 37 of the Life Insurance Corporation Act, 1956 (hereinafter, "LIC Act") to submit that the insured amount payable to the insurers is under a sovereign guarantee. In so far as NIACL is concerned, reliance is placed on circular dated 7th June, 2011, reiterated by e-mail dated 25th August, 2020 sent by the Consultant of the GI Council to the Law Secretary of the GNCTD, which has clarified that from the NIACL also, no security is to be insisted upon and usually all Government Departments are given a waiver of deposit of such securities and bank guarantees.
In view of the submissions made above, the fact that both the Corporations are State Corporations as also in view of the provisions of the LIC Act and circular dated 7th June, 2011, this Court is inclined to grant the waiver. Accordingly, the condition for furnishing of 5% performance security by LIC and NIACL stands waived. All directions issued vide order dated 7th October, 2020 and 11th November, 2020 shall continue to operate. Parties shall also adhere to the deadlines prescribed in the said orders.
Application is disposed of.