Hon’ble Krishna Murari, J.—The petitioners, who are partners of partnership firm M/s. Jai Singh Vaibhav Kumar, have approached this Court challenging the demand notice dated 25.3.2009 issued by the Chief Executive Officer, Cantonment Board, Meerut for recovery of a sum of Rs. 2,50,58400/- alongwith 3% development charge from the petitioners, failing which, security deposit of Rs. 40.00 lacs shall be forfeited and the balance shall be realized by sale of immovable property in accordance with Cantonment Act. A further relief of mandamus has also been claimed to command the respondents to release/return Rs. 40.00 lacs deposited by the petitioners as security in pursuance of the tender notice.

2. We have heard Sri S.D. Singh, learned Senior Advocate assisted by Sri Rahul Mishra, appearing for the petitioner and Sri Prashant Mathur appearing for the respondent Nos. 2 and 3. Though, the case has been called out in the revised list but no one has appeared on behalf of respondent No. 1.

3. Facts, giving rise to the dispute, are as under :

Respondent-Cantonment Board, Meerut invited tenders for collection of toll tax from commercial vehicles entering or passing through the limits of Meerut Cantonment Board for a period of eleven months by publishing a tender notice dated 19th/20th December, 2007 in different newspapers. The last date for submission of application was 2nd January, 2008 and the date for issuance of tender form after scrutiny was 5th January, 2008. The petitioners purchased the tender form which was accompanied with terms and conditions of the tender. In paragraph 3 of the terms and conditions, six existing toll collection points were specified. However, in para 4 of the terms and conditions, it is mentioned that bids were invited for collection of toll tax from all commercial vehicles as specified in the gazette notification entering into or passing through any route into the limits of Meerut Cantt. The total collection points as per para 4 of the terms and conditions is eleven in number. Eight persons, including the petitioners, purchased the tender form, out of which only seven submitted their tenders. All the bidders submitted two bids. One bid was for existing six toll collection points mentioned in paragraph 3 of the terms and condition and the other bid was for total 11 collection points as per para 4 of the terms and conditions. The bids submitted by the petitioner for Rs. 1,06,200/- per day for the six already existing toll collection points and of Rs. 1,71,000/- per day for eleven toll collection points was found to be highest and the same was placed before the Cantonment Board for approval. The Cantonment Board vide resolution No. 334 dated 17.1.2008 resolved to invite highest bidder for negotiation for upward revision of the bid offered and the result of such negotiation to be placed before the Board in the next meeting.

4. In pursuance of the aforesaid resolution, negotiation was held with the petitioners on 29.1.2008. During the negotiation, the petitioners increased their bids for eleven toll collection points from Rs. 1,71,000/- per day to Rs. 1,85,000/- per day. The revised offer made by the petitioner was placed before the Cantonment Board, Meerut in its meeting dated 29.1.2008 which was approved vide resolution No. 342. In pursuance of the aforesaid resolution, the petitioners were granted license dated 31.1.2008 by the Chief Executive Officer, Meerut Cantt. for collection of toll tax from commercial vehicles entering or passing through Meerut Cantonment from all the eleven toll collection points with immediate effect for a period of eleven months. As required, the petitioners deposited a sum of Rs. 40.00 lacs towards security money in the shape of demand draft and F. D. Rs in favour of Chief Executive Officer, Cantonment Board, Meerut and thereafter they were granted certificate of authorization dated 1.2.2008 to collect toll tax from the commercial vehicles entering into the limits of Meerut C