Honble RATHORE, J.–Brief facts of the case are that the respondents JVVNL invited tenders for various equipment including power distribution transformers from those qualified as per the parameters detailed in the notice inviting tenders.

(2). Pursuant to the tender notice, the petitioner submitted its bid on 26.3.2001 and also submitted a bid security by way of bank guarantee under the condition of tender bids which were opened on 27.3.2001.

(3). Vide letter dated 8.6.2001, the petitioner was asked to extend the validity of the bid. The petitioner time and again extended the validity of the bid and last extension was made upto 31.3.2002 by the petitioner vide letter dated 22.11.2001. The letter of intent dated 22.11.2001 and purchase order dated 4.12.2001 were issued to the petitioner and the petitioner was required to execute and signed the contract form and simultaneously furnish the amount of performance security. The petitioner furnished the contract form duly executed and signed the same on 18.12.2001, but failed to furnish the performance security.

(4). The controversy arise when the respondents forfeited the bid security of Rs. 13,97,100/- in terms of Clause 15, therefore, the

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