JUDGMENT :

VINEET SARAN, J.

1. In response to a tender call notice dated 28.10.2015 for the work “Provision of Passenger amenities over Sambalpur Division”, the petitioner had submitted its tender and was selected. The letter of acceptance was issued on 21.03.2016, in terms of which the petitioner was to submit the performance guarantee within 30 days from the date of issue of the letter of acceptance, with an extension of another 30 days being permitted, i.e., maximum period was up to 60 days. Admittedly, the performance guarantee was got prepared by the petitioner on 18.05.2016 and sent by courier on the same day, which was received by the office of the opposite party on 20.05.2016. The stipulation in the tender document, as well as the letter of acceptance, was that if the performance guarantee is submitted beyond 30 days and within 60 days, a penal interest of 15% per annum was to be paid for the delay of each day, beyond 30 days. It is not disputed that the penalty amount was also submitted by the petitioner along with the performance guarantee amount received on 20.05.2016.

2. Then, by order dated 24.05.2016, the contract in terms of the letter of acceptance was terminated and t