ORDER :

1. The petitioner is a small scale industry and MSME Unit, engaged in manufacturing, export and supply of pharmaceutical products. The Petitioner was one of the successful tenderers in the tender issued by the 2nd Respondent, as the implementing agency of the 1st Respondent, vide ‘E’ tender notification vide tender notice No.2/APMSIDC/Medicines/2015-17, dated 12.10.2015 for supply of general medicines to its 13 central Medicines Stores. Consequently, an agreement dated 16.04.2016 was executed between the petitioner and the 2nd Respondent. The provisions of the Tender and the consequent agreement, relevant to the present case, are clause 21 of the tender and Clause 3 of the agreement which read as under:

Clause 21 of the Tender

“The supply should be started within 45 days and should be completed within 75 days from the date of receipt of purchase order in phased manner. If no supply is received even after 75 days of receipt of the purchase orders from the supplier, the MD, APMSIDC is authorised to impose a penalty at the rate of 0.5% of the value of goods not supplied will be levied for each day delayed up to a maximum period of 15 days.”

Clause 3 of the Agreement

Penalty charges