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IN THE HIGH COURT OF DELHI AT NEW DELHI
SACHIN DATTA
Paharpur Cooling Towers Ltd – Appellant
Versus
Ramagundam Fertilizers And Chemicals Ltd – Respondent
| Table of Content |
|---|
| 1. background of the petition regarding emd-bg forfeiture (Para 1 , 2 , 3 , 5 , 6) |
| 2. petitioner's attempts for emd-bg refund (Para 8 , 9 , 10) |
| 3. petitioner's primary contentions against forfeiture (Para 11 , 12 , 13 , 14 , 15 , 16) |
| 4. respondent's defense and arguments (Para 17 , 18 , 19 , 20) |
| 5. court's analysis on maintainability and principles (Para 21 , 22 , 24 , 25) |
| 6. discussion on delay and petition maintenance (Para 26 , 28 , 30) |
| 7. court's reasoning on emd-bg forfeiture issues (Para 31 , 32 , 33 , 34) |
| 8. final order to refund emd-bg (Para 36 , 37) |
JUDGMENT :
SACHIN DATTA, J.
1. The present petition has been filed by the petitioner being aggrieved by the encashment/forfeiture of the Bank Guarantee towards the Earnest Money Deposit (hereinafter referred as “EMD-BG”) amounting to Rs. 47,50,000/- by the respondent no.1/Ramagundam Fertilizers and Chemicals Ltd. The said EMD-BG was furnished on 16.12.2015 (with a validity up to 27.12.2016) by the petitioner while participating in a tender dated 09.11.2015 floated by the respondent no.2/Engineers India Ltd (EIL) for the work of “cooling tower and CWTP packages for revival of Ramagundam Fertilizers and Chemicals project”.
2
The court established that retention of a forfeited bank guarantee is unjustified when the basis for forfeiture is invalidated by subsequent findings, underlining the jurisdiction of courts in contra....
Presence of an arbitration clause would oust jurisdiction under Article 226.
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....
Reimbursement of amount - Entitlement of - Grant of relief of this nature would virtually amount to a money decree. Petitioner is at liberty to take recourse to remedies available by raising such a c....
A State entity must act in accordance with principles of fairness and justice in contractual obligations, and cannot withhold payments without a clear determination of dues, as this constitutes arbit....
Termination of a contract without issuing a show-cause notice violates the principles of natural justice. Force majeure claims must be decided before taking any action based on non-compliance with th....
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