JUDGMENT :

Rajesh Shankar, J.

1. The present writ petition has been filed for quashing the letter under Ref. No. PO/TTK/Ramlal Agarwalla/NIT-11/Cancellation of contract/2020-21/1278 dated 11.09.2020 (Annexure-49 to the writ petition) issued under the signature of the Project Officer/Engineer-incharge, Tetariakhar OCP, Rajhara Area- respondent no.6, whereby the management of the respondent-Central Coalfields Limited has taken decision to take penal actions against the petitioner, namely, (i) Termination/cancellation of contract awarded to the petitioner in terms of Clause 9(a) of the GTC; (ii) Forfeiture of EMD of Rs.27.78 lakh in terms with Clause 6.1 of the GTC; (iii) debarring it from participating in future bids for a period of three years in terms with Clause 6.1 of the GTC; (iv) as per Clause 9.2(c), recovery is to be made from the petitioner to the extent of 20% of the contract value (20% of Rs.93,43,08,500/-) i.e. Rs.18,68,61,700/- being higher than the performance security and additional performance security deposited by the petitioner; (v) recovery is to be done by encashment of B.G. amounting to Rs.1,95,52,050/- submitted against performance security for Rs.93,43,100/- and additional performance security for Rs.1,02,08,950/-; and (vi) balance amount i.e. Rs.16,73,09,650/- (18,68,61,700-1,95,52,050) is to be recovered from any other contract of the petitioner-company or by institution of recovery suit in terms of Clause 9.2(c)(ii) of the GTC.

2. During pendency of the present writ petition, the petitioner prayed for grant of interim relief which was declined by this Court vide order dated 22.09.2020. Aggrieved thereby, the petitioner filed intra court appeal being L.P.A No. 298 of 2020 before learned Division Bench and the same was disposed of on 21.10.2020, observing as under:-

“10. Upon such submission of the learned counsel for the parties and taking into consideration the nature of issue involved in this case as also considering the undertaking furnished by the competent authorities as has been informed by learned counsel for the respondent-CCL, this Court, deems it fit and proper to dispose of the appeal at this stage, with a request to learned writ Court to decide the writ petition itself at an early date. 11. In view thereof, the learned Single Judge is requested to dispose of the writ petition itself at an early date on opening of the Court after Puja Holidays.

The parties are at liberty to make a motion before the learned Single Judge for listing of the writ petition.

So, far as passing of the interim order is concerned in view of the undertaking furnished by Mr. Das, on instruction of the competent authority of the respondents-CCL to the effect that no further recovery would be made till the disposal of the writ petition, this Court orders accordingly. Let no further recovery be made till the disposal of the writ petition.”

3. The factual background of the case as stated in the writ petition is that the respondent-CCL issued e-tender notice dated 24.05.2019 being NIT No.:CCL/GM(CMC)/Rajhara/2019/11 for hiring of HEMM for OB removal, extraction and transportation of coal at Tetariakhar OCP of Rajhara Area for a period of five years (hereinafter referred as ‘the said work’). The petitioner submitted its bid document and was found L-1 and the General Manager (CMC) issued letter of acceptance vide letter no.520 dated 25.10.2019, specifying that the term of completion of the work would be 1825 days which would be deemed to have commenced on the expiry of 30 days from the date of issuance of letter of acceptance or one week from the date of handing over the site of work, whichever is later, however, preparatory works would be started from 10th day of issue of LoA. Thereafter, the respondent no.8 issued letter of award vide letter no.347 dated 07.11.2019 for the aforesaid work. In compliance of the aforesaid letters, the petitioner submitted performance security through bank guarantee dated 19.11.2019 for Rs.93,43,100/-