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IN THE HIGH COURT OF HIMACHAL PRADESH, SHIMLA
M.S. RAMACHANDRA RAO, CJ, JYOTSNA REWAL DUA
Shiv Kant Prashar – Appellant
Versus
Chairman, Bhakra Beas Management Board – Respondent
| Table of Content |
|---|
| 1. details surrounding tender and contract execution (Para 1 , 2 , 3 , 4 , 5 , 6 , 7) |
| 2. petitioner's argument on price escalation (Para 8) |
| 3. validity of respondents' action under contract clauses (Para 9 , 10 , 11) |
| 4. court dismissal of the petition (Para 12) |
1. This Writ petition has been filed by the petitioner assailing Annexure P-19 dt.18.05.2022 issued by the respondents cancelling the work order dt.14.10.2020 issued by the respondents for executing the work of “Replacement of roofing of remaining 26 Nos. E-4 and SL-4 type quarters in BBMB Colony at Slapper” forfeiting EMD amount of Rs.1,35,540/- deposited by the petitioner and also suspending business dealings with the petitioner for a period of three years from that date invoking General Condition Sr. no.12.
2. It is not in dispute that the respondents had published an Online tender dt. 31.07.2019 for execution of the above work and the petitioner participated in the said tender and his bid was accepted. Thereafter from time to time, the respondents, for various reasons sought extension of the petitioner’s offer on 12.03.2020, 01.06.2020 and the petitioner obliged by e-mails
A contractor must timely communicate any impediments to executing work; failure to do so does not excuse non-performance and justifies forfeiture of earnest money under contract terms.
. It is trite to note that the decision of authority is based on the terms of tender wherein it has been kept open for the authority to debar the petitioner for the period of two years or more. It is....
The court held that forfeiture of earnest money without prior notice violates principles of natural justice, and a reasonable timeframe must be given for executing tender agreements.
Acceptance of a tender constitutes a binding contract, and the absence of a formal agreement does not invalidate the obligations under the tender terms.
The court upheld the administrative decision to terminate a contract for delay in completion due to the petitioner's failure to adhere to the agreement terms.
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