Ishwar Sharma 29 October 2021

Unlawfully cancellation of tender

in outsourcing of manpower tender, the contractor was compelled by principal employer to depute the previously working labour. when it was not done by contractor the tender was cancelled by principal employer.

but that was not mentioned in the tender agreement.

is it lawful or against the law.

kindly guide me and provide me the law supporting the facts in the above mentioned matter.

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Quick Summary

This discussion explores whether a principal employer can lawfully cancel a manpower outsourcing tender if the contractor doesn't depute previously employed labour, especially when this wasn't an explicit tender term. It highlights common practices in government and private organisations where readymade labour is retained by transferring it to new contractors. The advice suggests that if the contract is silent on this specific requirement, past practice might prevail, but an express clause could allow for contesting the cancellation.

2 Replies

Pradipta Nath (Advocate) 30 October 2021

Generally this is what happens in every Government organization and big private companies. The PE have readymade manpower with them and as the contractor not able to fulfill the obligations as per their whims, they engage another contractor while maintaining the earlier manpower. They simply transfer the manpower form one to another contractor.

I don't think the contract or the letter of intent expressly have such clause as what you have held. It may have clause to depute personnel only on such and such post or locations. In case the contract is silent on this, the practice shall prevail else if there is any express clause, you can contest.

For further opinion, need to go through the documents.