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IN THE HIGH COURT AT CALCUTTA
SMITA DAS DE
Manoj Kumar Verma – Appellant
Versus
Union of India – Respondent
JUDGMENT :
Smita Das De, J.
1. The instant writ petition has been filed by the petitioner in WPA No. 13131 of 2025, challenging inter alia, the rejection of a bid dated May 8, 2025 for leasing under lot No 12381-SLR-R1-HWH-NDLS-25-1 coupled with forfeiture of the earnest money to the tune of Rs. 7,45,321/-
2. Apropo, the facts made out in the ‘Writ Petition’ is that the petitioner is a proprietorship firm engaged in the business of transportation of goods of various natures under the name and style of ‘Vishal Enterprise’. The petitioner has submitted his bid and became the highest bidder pursuant to a tender notification dated May 8, 2025 for leasing of a parcel space in SLR coach of 12381, ex HWH to NDLS Poorva express. The petitioner has been declared as the highest bidder. At the outcome of the tender process, the petitioner has secured the business commitments from customers to ensure smooth execution of the lease work, but as such no formal agreement has been executed with the railway authorities. The petitioners bid has been cancelled by the railway authorities by forfeiting the earnest money to the tune of Rs. 7,45,321/- without serving any formal notice and/or order of cancell
Forfeiture of Earnest Money requires intent to mislead; accidental clerical errors should not disqualify bidders nor invoke punitive measures, affirming principles of natural justice.
A successful bidder cannot be penalized for inadvertent documentation errors, and forfeiture of earnest money requires proof of intent to mislead, reflecting principles of natural justice.
Forfeiture of bid security must be explicitly stipulated in the contract terms, and failure to bid higher does not equate to withdrawal from the bidding process.
The main legal point established is that in contractual matters, the court may intervene to prevent arbitrariness or favoritism by the government bodies, especially if the actions violate the equalit....
A bidder cannot claim EMD refund due to an inadvertent error in a bid amount when sufficient safeguards exist in the bidding process to prevent such mistakes.
Forfeiture of earnest money is valid before contract execution if tenderer provides false information, without invoking Sections 73 and 74 of the Contract Act.
The Liquidator's authority to forfeit EMD in liquidation auctions is valid if terms specified in the Auction Memorandum are clear and accepted by bidders; forfeiture must comply with applicable regul....
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