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2015 Supreme(Jhk) 1166

IN THE HIGH COURT OF JHARKHAND AT RANCHI
PRASHANT KUMAR, J.

M/s Om Prakash Singh Buildcon Pvt. Ltd. - Petitioner
Versus
The State of Jharkhand & Ors. – Respondent
W.P.C. No. 78 of 2014
Decided on : 16.10.2015

Advocates:
Advocate Appeared:
For the Petitioners: M/s R.Krishna, Manish Kr. & S.Garapati
For the Respondents: M/s. Anshuman Kumar, JC to A.G.

Headnote:Contract Act, 1872—Sections 19 and 56—Void contract—Unlawful execution of contract—Respondents cannot force petitioner to execute such agreement—Forfeiture of earnest money and blacklisting of petitioner is illegal and also is in violation of principles of natural justice since petitioner was not accorded any opportunity of being heard—Impugned order set aside.

JUDGMENT :

Prashant Kumar, J.

This writ application has been filed for quashing the order as contained in letter no. 990 dated 04.06.2013, whereby respondents forfeited the earnest money deposited by the petitioner in the form of bank guarantee in relation to Tender No. RWD/DUMKA/02/2012-13 for construction of road from Durgapur to Kolha.

2. It appears that during pendency of this writ application, respondents black-listed the petitioner vide letter no. 79 dated 26.06.2014, thus, an application filed by the petitioner, being I.A.No. 3339 of 2014, challenging the aforesaid order and also for amendment of the writ application.

3. As noticed above, since the petitioner was black-listed during the pendency of this writ application, therefore, I.A.No. 3339 of 2014 allowed and the writ application is amended accordingly. It is ordered that the aforesaid I.A. petition become the part of this writ application.

4. It is stated that respondent-Rural Works Department, State of Jharkhand issued e-Tender vide Reference no. 53/2012-13/RWD/Dumka dated 13.10.2012 for construction of road from Durgapur to Kolha. In -2-pursuance of the said tender notice, petitioner submitted its bid. The aforesaid bid was accepted. It is stated that respondent no.4 (Executive Engineer, Rural Works Department, Dumka Division, Dumka) vide letter no. 673 dated 05.04.2013 requested the petitioner to execute agreement within Seven days. After receipt of the aforesaid letter, petitioner came to know that some of the villages, falling in between Durgapur to Kolha, come within the forest area. Accordingly, petitioner wrote a letter on 09.05.2013 to the respondent no.4 stating therein that prior to submission of tender, on query he was informed by the office of the respondent no.4 that there is no forest and/or raiyati land in between Durgapur and kolha as it appears from letter no. 1484/Dumka dated 14.09.2011. It is further stated that keeping the aforesaid fact in view, the petitioner participated in the bid. But later on, he surprised to know that part of the lands in between Durgapur to Kolha falls in protected forest area, Thus, petitioner requested the respondent no.4 for obtaining clearance from the Forest Department immediately, otherwise it is not possible for the petitioner to execute the work. It is stated that instead of obtaining clearance from the forest department the respondent no.4 vide letter no. 896 dated 18.05.2013, informed the petitioner that there is no forest land in between Durgapur to Kolha, thus, petitioner executed the agreement. It is also mentioned in the said letter that if the agreement will not be executed than the work will be allotted to second tenderer and the petitioner will be black-listed. It is stated that thereafter, vide letter no. 990 dated 04.06.2013, respondent no.4 forfeited the earnest money of the petitioner and recommended for black-listing the petitioner

5. It is submitted that aforesaid action of the respondents is wholly illegal and arbitrary, because from perusal of letter no. 2454 dated 30.09.2013, written by Divisional Forest Officer, Dumka to respondent no.4, it is clear that in between Durgapur to Kolha altogether Six villages fall in the notified forest area. In the said letter, the Divisional Forest Officer requested the Executive Engineer for taking approval of the Govt. of India before starting the construction of the road. In view of above facts and circumstances, the petitioner made a representation for refund of earnest money, because the petitioner can not execute illegal work. It further appears that during pendency of the present writ application, the Engineer-in-Chief-cum-Additional Commissioner-cum- Special Secretary of the Rural Works Department black-listed the petitioner.

6. In the instant case, two counter-affidavits filed, one by respondent -3-nos. 2 to 4 and another by the respondent nos. 5 to 7.In the first counter-affidavit, respondent nos. 2 to 4 stated that Durgapur to Kolha road exist from befo
















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