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SANDEEP MEHTA, ARUN DEV CHOUDHURY
General Manager (Cons), N. F. Railway, Maligaon, Guwahati – Appellant
Versus
AR-Allied Subhadra (JV) – Respondent
JUDGMENT :
S. Mehta, J.
The instant intra-Court writ appeal takes exception to the judgment and final order dated 25.03.2021 passed by the learned Single Judge whereby the writ petition, being, WP(C) 155/2020 preferred by the respondents herein was accepted and the order dated 02.05.2019 issued by the appellants, cancelling the contract entered into with the respondents (writ petitioners) and forfeiting their Earnest Money Deposit (EMD) to the tune of Rs.51,51,870/-, was interfered with and reversed.
2. The brief facts relevant and essential for disposal of the appeal are noted hereinbelow.
A Tender Notice dated 17.09.2018 was floated by the appellant Northeast Frontier Railway (hereinafter referred to as the Tendering Authority) for carrying out the task of earthwork in forming embankment including Pawakhali station yard, construction of minor bridges including RUB/LHS [Total 44 Nos.], including other miscellaneous ancillary works from Chainage 83.50 Km. to 106.837 Km. between station Pawakhali to Thakurganj in connection with construction of New BG line from Arariya to Galgalia of NF Railway (Construction). The approximate value of work was Rs.1000373270.52 and the earnest money depo
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 ....
The NIT stipulated that tenderers who resile before the validity period shall be liable for forfeiture of EMD. The action of the respondents in seeking change of the rate offered bid amounted to resi....
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.
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