IMPORTANT POINT
The court affirmed that failure to commence loading within the stipulated time justified contract termination and forfeiture of the security deposit.

JUDGMENT :

N. Unni Krishnan Nair. J

Heard Mr. D. Das, learned Senior Counsel assisted by Mr. G. Islam, learned counsel for the appellants. Also heard Mr. K. Gogoi, learned CGC appearing for the respondents.

2. The present Intra Court Appeal has been instituted, assailing the Judgment & Order dated 21.04.2022, passed by the learned Single Judge in WP(C)710/2022.

3. The appellant herein, who is a category-A registered lease holder of Tinsukia Division, NF Railway had submitted his bid in pursuance to an NIT dated 25.08.2021, issued by the Tinsukia Division, NF Railway for leasing of 24.00 tonne VPH by Train No. 05960/05959, Kamrup Express Special from Dibrugarh Railway Station to Howrah Railway Station and back on Round Trip basis. The bid of the petitioner, having been found to be suitable, the Senior Divisional Commercial Manager, Tinsukia, vide communication dated 08.10.2021, issued a Letter of Acceptance (LoA) in respect to the petitioner, accepting his bid for leasing of the 24 tonne VPH by Train No. 05960/05959, Kamrup Express. In terms of the said LoA, the petitioner was to furnish the Security Deposit within 15 days from the date of issue of the LoA. The petitioner was also required to execute an agreement. The LoA dated 08.10.2021, further specified that all other Terms and Conditions of the tender documents shall remain applicable. The appellant herein had not furnished the Security Deposit within the time frame so mandated in the LoA and had only submitted the same on 05.11.2021. The Security Deposit being required to be furnished within 15(fifteen) days from the date of issue of the LoA and loading also being required to be commenced within a period of 15(fifteen) days w.e.f. the date of issue of the LoA, the competent authority vide communication dated 26.11.2021, accorded his approval to the delayed submission of Security Deposit money as well as with regard to the delay occasioning in commencement of loading of the leased 24 tonne VPH by the train involved, thereby condoning the same.

4. It is to be noted that although the LoA was issued to the appellant on 08.10.2021, it had not commenced loading within 15 days as mandated by the provisions contained in the NIT dated 25.08.2021. Vide the said communication dated 26.11.2021, the appellant was further requested to immediately furnish the intermediate loading/unloading points so that allotment order may be issued.

5. The Railway authorities thereafter, on receipt of the response from the petitioner in pursuance of the communication dated 26.11.2021, proceeded vide communication dated 29.11.2021 to issue an allotment order to the appellant herein, for loading of 24 tonne VPH by the train involved. Vide the said communication dated 29.11.2021, the appellant was directed to start loading of the leased out 24 tonne VPH of the train involved by 07.12.2021.

6. At this stage, it is to be noted that the appellant herein had issued a communication dated 08.11.2021 and therein, by justifying the delay occasioning in starting of the loading operations by it, had undertaken that the loading would be started w.e.f. 21.11.2021. It is seen from the materials brought on record that the appellant had not started the loading operations in spite of lapse of considerable period of time since the date of issuance of the LoA. The Railway authorities vide a communication dated 17.12.2021 had required the appellant to attend the Office of the Senior Divisional Commercial Manager, Tinsukia, on 20.12.2021, for signing the contract agreement for the leased 24 tonne VPH which was said to be ready in all respects. It is seen that the appellant had not complied with the requirement as made of it vide the communication dated 17.12.2021, leading to the Railway authorities to issue a further communication on 21.12.2021, requiring the appellant to attend the Office of the Senior Divisional Commercial Manager on 22.12.2021 for signing of the contract agreement and for commencement of the loading operations