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SANDEEP MEHTA, ARUN DEV CHOUDHURY
Food Corporation Of India, Rep. By The Chairman Cum Managing Director – Appellant
Versus
M. Pul Enterprise Proprietorship Concern Of Sri Muhilum Pul – Respondent
JUDGMENT :
Sandeep Mehta, J.
The instant intra-Court writ appeal takes exception to the judgment and final order dated 14.08.2018 passed by the learned Single Judge accepting WP(C) No.4340/2008 filed by the respondents herein and quashing and setting aside the letter dated 15.10.2007 issued on behalf of the appellant General Manager, FCI, Regional Office, Guwahati directing forfeiture of earnest money deposited by the respondent No.1 in pursuance of the Notice Inviting Tender (NIT) floated by the appellants inviting bids for transportation of food grains from Tinsukia Railway Siding to the FCI Godown at Tezu including handling work at Tezu for 2(two) years.
2. Admitted facts as emanating from record are that the bids were opened on 03.08.2007. As the bid of the respondent No.1 was found to be compliant to all the requirements of the NIT and as the rate quoted by the respondents at Rs.32.34 per MT, per KM, was the lowest, the same was accepted. However, rather than proceeding with the submission of document(s) and completion of formalities, the respondents herein wrote a letter dated 06.10.2007 to the appellant authority praying that they were from very remote area, had mistakenly quot
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....
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 timing of offer acceptance and withdrawal in relation to EMD forfeiture is crucial in determining the applicability of tender clauses and the entitlement to EMD return.
Forfeiture of Earnest Money requires intent to mislead; accidental clerical errors should not disqualify bidders nor invoke punitive measures, affirming principles of natural justice.
Forfeiture of earnest money is justified due to bidder's misrepresentation and breach of tender conditions.
The authority of the State respondents to insert additional grounds for forfeiture of earnest money in the NIT to ensure genuine bids in government contracts.
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