IN THE HIGH COURT OF CHHATTISGARH AT BILASPUR
ARUP KUMAR GOSWAMI, ARVIND SINGH CHANDEL, JJ.
M/s Ambey Industries, a proprietorship firm, through its Proprietor Shri Dilip Kumar Agrawa – Appellant
Versus
Chhattisgarh State Civil Supplies Corporation Limited – Respondent
Writ Petition (C) No.2174, 2145 of 2022
Decided on : 09-02-2023
Indian Contract Act, 1872 – Section 5 – Writ petitions have been preferred by petitioner against respondents issued e-tender for purchase of chana for financial etender was issued for 4 divisions which were divided – Held, Case apparently no separate show cause notice was issued to petitioner before passing of order of black listing apparently petitioner has not been provided any opportunity of hearing before passing of said order – Petitioner with respect to order petitioner has been debarred from participating in future tender process for concerned contended that no show cause notice was issued before passing of order of black listing – Writ petitions are allowed.
ORDER :
Arvind Singh Chandel, J.
1. Since common questions are involved in both the writ petitions, they are disposed of by this common order.
2. Both the writ petitions have been preferred by the petitioner against the respondents for the following reliefs:
2. That, this Hon’ble Court may kindly be pleased to issue a writ/writs, direction/directions, order/orders quashing the impugned order dated 13/04/2022 (ANNEXURE P/2) passed by the Managing Director of the Respondent Corporation;
3. That, this Hon’ble Court may kindly be pleased to issue a writ/writs, direction/directions order/orders quashing the impugned communication dated 01/04/2022 (ANNEXURE P/3) passed by the Respondent Corporation;
4. That, this Hon’ble Court may kindly be pleased to issue a writ/writs, direction/directions, order/orders quashing the impugned order dated 31/03/2022 (ANNEXURE P/4) passed by the Respondent Corporation;
5. That, this Hon’ble Court may kindly be pleased to declare that the price bid of the Petitioner firm has been validly withdrawn with effect from the receipt of the letter dated 30/03/2022 by the Respondent Corporation;
6. That, this Hon’ble Court may kindly be pleased to issue a writ/writs, direction/directions, order/orders to the Respondent Corporation to return the earnest money deposit of the Petitioner along with interest;
7. That, this Hon’ble Court may kindly be pleased to grant any other relief(s), which is deemed fit and proper in the aforesaid facts and circumstances of the case.”
3. According to the petitioner, the respondents issued e-tender dated 7.2.2022 for purchase of chana for financial year 2022-23. The etender was issued for 4 divisions which were divided into 4 groups, i.e., Group-1, Group-2, Group-3 and Group-4 for supply of chana in various districts of the State. Writ Petition (C) No.2145 of 2022 relates to tender process of Group-1, i.e., e-tender No.92241, which was for supply of chana in the regions of Bastar, Bijapur, Dantewada, Kanker, Kondagaon, Narayanpur, Sukma, Balod, Kawardha and Rajnandgaon. Writ Petition (C) No.2174 of 2022 relates to e-tender No.92280 for Group-4, which was for supply of chana in the regions of Balrampur, Korea and Surajpur. The bid of the petitioner for Group-1 was Rs.5185 per quintal and for Group-4 it was Rs.5344 per quintal. Price bids were opened on 16.3.2022 and the bids of the petitioner were found to be the lowest in Group- 1 and Group-4 tenders. Thereafter, invoking Clause 29 of the tender document, the Corporation called upon the petitioner to negotiate the bid prices. The petitioner thereafter immediately on 22.3.2022 further reduced the bid price for both the tenders by further reducing 10 paisa per quintal, i.e., Rs.5184.90 and Rs.5343.90 per quintal for Group-1 and Group-4 respectively. It was further contended that there was a sudden turmoil in the market condition after 22.3.2022 and the prices of the petrol, diesel, toll taxes and packing materials etc. surged and considering the fact that the Corporation was not accepting or rejecting the price bid from the petitioner firm, a letter of withdrawal dated 30.3.2022 (Annexure P10 in both the writ petitions) was served by the petitioner firm upon the Respondent Corporation on 31.3.2022 citing reasons for withdrawal of its offer dated 9.3.2022 and requesting the Corporation to call next highest bidder (L2) to make the supply and also to release the earnest money deposited by the petitioner firm. The Corporation, acting in the most arbitrary manner, chose not to respond to the communication dated 30.3.2022 (Annexure P10) and instead it proceeded to accept the bid submitted by the petitioner firm and communicated the acceptance via e-mail which was sent on the same day, i.e., 31.3.2022 (Annexure P4) at 7:24 p.m. The Respondent C
Forfeiture of earnest money is valid before contract execution if tenderer provides false information, without invoking Sections 73 and 74 of the Contract Act.
Tender clauses permit EMD forfeiture and contract cancellation without notice for failing performance security; debarment requires specific prior show cause notice per natural justice principles due ....
The principle of natural justice requires that the affected party be given a reasonable opportunity to defend themselves, and any proposed penalty/action should be mentioned specifically and unambigu....
The main legal point established in the judgment is that the contract stood concluded upon acceptance of the bid, and the subsequent signing of documents was only for formal documentation. The court ....
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