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SHREE CHANDRASHEKHAR, RATNAKER BHENGRA
Central Coalfields Limited – Appellant
Versus
ARETPL-AT(JV) – Respondent
ORDER :
Shree Chandrashekhar, J.
M/s ARETPL-AT(JV) approached the writ Court against the order contained in letter dated 12th October 2017 by which Letter of Acceptance (in short 'LOA') with respect to the work of “Hiring of HEMM for removal of OB at outsourcing patch of Konar part of AKK OCP of B-K Area for a period of four years” was cancelled for 2 days' delay in furnishing performance security.
2. The writ Court held that the stipulation under Clause 4.2 of NIT for furnishing performance security of 5% of annualized value of contract amount to be deposited within 28 days of LOA by the successful bidder was not a mandatory condition. The writ Court further held that the order of blacklisting for 3 years issued under Clause 4.2 of General Terms and Conditions (in short 'GTC') without issuing a show cause notice was bad in law.
3. The aforesaid findings by the writ Court in WP(C) No. 6106 of 2017 have been challenged by Central Coalfields Limited (in short 'CCL') on the grounds that (i) there was no concluded contract between the parties (ii) CCL cancelled LOA and passed the order of forfeiture and debarment as provided under NIT and, (iii) writ Court exceeded its jurisdiction to inte
Blacklisting a contractor without a fair hearing violates principles of natural justice, rendering such actions invalid, while the termination of the contract for non-compliance with security require....
The cancellation of a Letter of Acceptance due to an 8-day delay in performance security submission was deemed unreasonable, emphasizing the need for fairness in public contract processes.
The main legal point established in the judgment is the validity of the Bank Guarantee submitted by the petitioner and the application of principles of natural justice by the respondents.
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It is well settled that mere existence of an alternative remedy or an alternative forum does not stand as an impediment on Court to exercise its jurisdiction under Article 226 of Constitution of Indi....
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