IMPORTANT POINT
The court emphasized the necessity of adhering to principles of natural justice, ruling that no one should be condemned unheard, and set aside the forfeiture of the Earnest Money Deposit.

ORDER :

Surepalli Nanda, J.

Heard Sri V. Ravi Kiran Rao, learned counsel appearing on behalf of the petitioner and Sri P. Sri Harsha Reddy, learned Standing Counsel for Singareni Collieries Company Limited, appearing on behalf of respondents.

2. The petitioner approached the Court seeking prayer as under :

“…to issue any appropriate Writ, Order or direction more in the nature of Writ of Mandamus declaring the Proceedings issued by the Respondent No.2 vide Ref. No.CRP/CMC/E1414O0290/6051 dated 09.12.2014 forfeiting the Earnest Money Deposit of Rs.5,00,000/- (Rupees Five Lakhs) invoking the condition No.2.2.c(v) of NIT (Notice Inviting Tender) conditions and the consequential proceedings No.CRP/CMC/E 1414O0290/6277 dated 22.12.2014 rejecting the representation dated 17.12.2014 submitted by petitioner as per the terms and conditions of NIT (Notice Inviting Tender) as illegal, arbitrary, unjustified, violative of Articles 14 and 300-A of the Constitution of India apart from the provisions of Contract Act 1872 and consequently direct the Respondents to return the Earnest Money Deposit amount of Rs.5,00,000/- and pass such further or other orders as the Hon’ble Court may deem fit and proper in the circumstances of the case.”

3. The case of the petitioner in brief, is that the petitioner is a partnership firm registered in the style of i.e., M/s. Sri Balaji Associates, H.No.140, Hanuman Basthi, Bellampally, Adilabad District, comprising of three partners. Subsequently, after mutual agreement between all the partners, 4th partner was included and to the effect a document was executed. While matter stood thus, the Singareni Collieries Company issued a e-tender notice i.e., vide Enquiry No.E1414O0290 dated 11.10.2014 inviting tenders for transportation of Coal from KHA.OCP (Khairagura Open Cast Project) and Dorli.OCP.1 (Dorli Open Case Project-1) and From KHA.OCP to RKP CHP (Khairagura Open Cast Project to (Ramakrishnapuram Coal Handling Project) on weight basis for a period of 2 years. As such, the petitioner firm had filed tender within the time mentioned in the tender enquiry notice. However, during the commercial evaluation, the 2nd respondent had observed that the 4 partners of the Petitioner firm signed on the partnership deed on 24.07.2012 were as the bond paper was purchased on 30.07.2012, therefore the petitioner frim’s tender was rejected. Subsequently, the respondent No.2 issued the impugned letter vide Ref. No.CRP/CMC/E141O0290/6051 dated 09.12.2014 intimating the petitioner firm that the Earnest Money Deposit of Rs.5,00,000/- has been forfeited. Aggrieved by the same, the petitioner filed a representation dated 17.12.2014 before the 2threspondent. However, the same was rejected by the 2nd respondent vide proceedings No. CRP/CMC/E141O0290/6277 dated 22.12.2014 reiterating the earlier decision passed in proceedings dated 09.12.2014. Aggrieved by the same, the present writ petition has been filed by the petitioner.

4. This Court passed interim order in favour of the petitioner on 25.03.2015 in W.P.M.P.No.6817 of 2015 in W.P.No.5113 of 2015 observing as under :

“Heard learned counsel for the petitioner.

Having regard to the submissions made by the learned counsel for the petitioner, this Court is of the view that there is no justification on the part of the respondents in forfeiting the Earnest Money Deposit of the petitioner.

Therefore, there shall be interim direction to the respondents to return the Earnest Money Deposit of the petitioner within a period of four weeks from the date receipt of a copy of this order.”

PERUSED THE RECORD:

5. The counter affidavit filed on behalf of the respondents and in particular paragraph Nos.7, 9 and 10 of the said counter affidavit are extracted hereunder :

“7. It is submitted that the grievance expressed by the Petitioner in the present writ petition is that the mistake is an inadvertent mistake and should be condoned, which is not permissible in the matters relating the contract wherein the bidders w