ORDER :

P.R. Ramachandra Menon, J.

1. 'Correctness and sustainability' of Annexure P/1 proceedings to the extent it has 'ordered' forfeiture of the Earnest Money Deposit (for short 'the EMD') and the subsequent Annexure P/2 order whereby the Letter of Intent (for short 'the LoI') has been cancelled, EMD has been forfeited, Blacklisting has been 'enforced and ordered' for a period of 24 months and a Penalty of Rs.5,4068,855.43 has been imposed; is put to challenge in this writ petition.

2. The sequence of events shows that Annexure P/4 tender notice was issued by the 1st Respondent on 03.12.2019 inviting bids for (i) hiring of pay loader for mechanical transfer of coal into tippers at stock yard, (ii) hiring of tippers for transportation of coal from coal stock yard for a certain quantity and duration of time. On coming out successful in the tender and on getting placed at L-1, the Petitioner was awarded Annexure P/5 LoI on 15.02.2020, informing that the EMD of Rs. 15,04,900/- remitted by the Petitioner would be retained by the 1st Respondent, to be adjusted against the Performance Security Deposit (for short, 'the PSD') to be satisfied (Rs. 40,07,449/-) within 28 days and further alerting the necessity to satisfy the Additional Performance Security Deposit of Rs. 2,66,91,053/- in terms of Clause 4.6 of the General Terms & Conditions of the contract alongwith the Normal Performance Security. As per the very same proceedings, the Petitioner was also required to mobilise the equipments for executing the work and to commence the work within 10 days from the date of issuance of the LoI.

3. It is the case of the Petitioner that before getting the LoI, the Petitioner had submitted Annexure P/7 application to the Bankers on 20.01.2020 for renewal of the Bank Guarantee limit which came to be approved by the Bank as per Annexure P/8 dated 19.02.2020. In view of the stipulation to furnish Additional Performance Security in terms of the tender and as pointed out in Annexure P/5, the Petitioner vide Annexure P/9 dated 20.02.2020 requested the Bankers to enhance the Bank Guarantee limit to Rs. 4,00,00,000/- from the already sanctioned limit of Rs.2,00,00,000/-. On 02.03.2020, the Petitioner submitted Annexure P/10 representation before the Respondents seeking waiver of the requirement to satisfy the Additional Performance Security. But since the requirements as per the tender conditions were not satisfied and the work was not commenced, Annexure P/12 show-cause notice was issued by the Respondents on 11.03.2020. The Bankers rejected the request of the Petitioner to enhance the Bank Guarantee limit on 17.03.2020, when the Petitioner submitted Annexure P/13 representation dated 18.03.2020, in reply to Annexure P/12 notice, expressing the inability to meet the requirement as to the satisfaction of Additional Performance Security. The very next day, the Petitioner was served with Annexure P/1 dated 19.03.2020, styled as a 'Notice' but conveying the course of action by the Management for:

(i) cancellation of the LoI,

(ii) forfeiture of the EMD and

(iii) debarring the Petitioner from participating in the future tender for a period of 12 months.

4. Nothing transpired for nearly six months and on 28.09.2020, Annexure P/2 order of termination/penal action was issued, referring to the lapse of the Petitioner and also as to the infringement of the various Clauses (Clause 4.3, 4.6 and 9.2) of the General Terms and Conditions of the tender and passing the orders to the following effect:

"(i) Cancellation of LOI No. SECL/BSP/CMC/78 dated 15.02.2020.

(ii) Forfeiture of Earnest Money Deposit of the successful bidder M/s. SBJ Projects Private Limited.

(iii) Debarring of successful bidder M/s. SBJ Projects Private Limited from participating in future bids in SECL for a period of 24 (twenty four) months.

(iv) Imposition of penalty of Rs. 5,40,68,855.43 (excl. GST) as per Clause 9.2(b)(iii) i.e. 20% of value of incomplete work including price variation as applicable on t