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2025 Supreme(Online)(Chh) 17821

IN THE HIGH COURT OF CHHATTISGARH AT BILASPUR
M/S. S. KUMARS ASSOCIATES – Appellant
Versus
STATE OF CHHATTISGARH – Respondent
WPC/6196/2025



2025:CGHC:58507-DB NAFR ROHIT KUMAR HIGH COURT OF CHHATTISGARH AT BILASPUR CHANDRA Digitally signed by ROHIT KUMAR WPC No. 6196 of 2025 CHANDRA M/s. S. Kumars Associates Proprietor Mrs. Priya Agrawal W/o Sanjay Agrawal Through Its Authorized Power Of Attorney Of The Sole Proprietorship Firm Sanjay Agrawal S/o Gaurishankar Agrawal Aged About 40 Years, R/o G. S. Compound, New Bus Stand, T. P. Nagar, Korba, Tahsil And District Korba, Chhattisgarh. P I N- 495 677.

... Petitioner versus

1 - State Of Chhattisgarh Through Its Secretary, Indravati Bhawan, Block No. 04, Third Floor, Atal Nagar, Naya Raipur, District- Raipur, Chhattisgarh P I N- 492 002

2 - Raipur Development Authority Through Its Chief Executive Officer, 2nd Floor, Bhaktmata Karma Vyavsayik Parisar, New Rajendra Nagar, Raipur, Tahsil And District- Raipur, Chhattisgarh P I N 492 006

3 - Superintending Engineer Raipur Development Authority, 2nd Floor, Bhaktmata Karma Vyavsayik Parisar, New Rajendra Nagar, Raipur, Tahsil And District- Raipur, Chhattisgarh P I N 492 006

4 - Executive Engineer Raipur Development Authority, 2nd Floor, Bhaktmata Karma Vyavsayik Parisar, New Rajendra Nagar, Raipur, Tahsil And District- Raipur, Chhattisgarh P I N 492 006 ... Respondents For Petitioner : Mr. Raj Kamal Singh through video conferencing along with Mr. Shubham Dwivedi, Advocate For Respondent No.1/ State : Mr. Praveen Das, Dy. Adv. General For Respondent Nos. 2 to 4 : Mr. Animesh Tiwari, Advocate /RDA Hon'ble Shri Ramesh Sinha, Chief Justice Hon'ble Shri Bibhu Datta Guru , Judge

Order on Board

Per Ramesh Sinha , Chief Justice

03 . 12 .202 5

1. Heard Mr. Raj Kamal Singh through video conferencing along with Mr. Shubham Dwivedi, learned counsel for the petitioner as well as Mr. Praveen Das, learned Deputy Advocate General, appearing for the State/respondent Nos. 1, 3 & 4 and Mr. Animesh Tiwari, learned counsel, appearing for respondent No.2 / RDA.

2. The petitioner has approached this Court under Article 226 of the Constitution challenging the communication dated 22.07.2024 issued by the Executive Engineer, Raipur Development Authority (RDA), whereby the petitioner’s bid under NIT No.13 dated 11.06.2024 was cancelled and the Earnest Money Deposit (EMD) of Rs. 10,00,000/- was forfeited. The petitioner seeks quashment of the said communication and a direction for refund of the EMD with commercial interest @ 18% per annum, along with compensation for alleged losses and harassment.

3. The reliefs sought by the petitioner are as follows:

“10.1 This hon'ble Court may please be kind enough in quashing and setting aside the Memorandum No. 2623/ C-2018/59/Part-1/ Vipra Raipur, Dated 22.07.2024 (Annexure P-1).

10.2 This hon'ble court may please be kind enough in directing the respondents to release the petitioner's Earnest Money Deposit of Rs. 10,00,000/- deposited vide Fixed. Deposit Receipt No.498603030090581 dated 21.06.2024 with commercial interest @ 18% per anum and compensate the petitioner for harassment caused and also to compensate the petitioner for the losses suffered because of unreasonable cancellation of its Bid.

10.3 This hon'ble court may please be kind enough in granting the cost of the petition and any other relief to the petitioner.”

4. Mr. Raj Kamal Singh, learned counsel appearing for the petitioner through video conferencing, submits that the petitioner was declared successful in the tender process for construction of 253 EWS (2BHK) units and was issued a Letter of Award dated 05.07.2024 requiring it to execute the agreement and furnish the Performance Security. According to the petitioner, the initial communication allowed seven days for compliance, but the petitioner asserts that the letter was received belatedly. Thereafter, a reminder dated 16.07.2024 granted only three days to furnish the Bank Guarantee towards Performance Security, out of which two days were public holidays, effectively leaving no workable time to comply. The petitioner contends that immediately upon receipt of t

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