The court confirmed the obligation to refund the Earnest Money Deposit while ensuring the petitioner waives any future claims related to tender cancellation.

JUDGMENT

The petitioner is a government contractor, and in response to the notification published by the 1st respondent inviting tenders for carrying out the work regarding the construction of safe dwellings for landless fishermen at Manappuram in Alappuzha District—Phase I (4 Units), the petitioner submitted a tender. The petitioner’s tender was accepted, and thereupon the petitioner was asked to sign the final agreement. While submitting the bill of quantities as evidenced by Ext.P5, as there was no separate column for GST, the petitioner quoted the rates without calculating the GST alone.

2. In such circumstances, as the Ext.P5 was not feasible, the petitioner requested for cancellation of the tender and refund of the EMD furnished. This writ petition is submitted by the petitioner in such circumstances seeking the following reliefs:

i) Issue a Writ of Mandamus, directing the 1^st respondent authority to recalculate the tender value treating the rates quoted by the petitioner as exclusive of GST, and to make necessary corrections in the work order or payment schedule accordingly, forthwith, ii) Declare that the basic rates quoted by the petitioner in the BOQ are exclusive of GST and that GST is to be paid over and above the quoted rate as per law, iii) A Writ of Certiorari or any other appropriate Writ, Order or Direction, calling for the tender bearing No. ET-47/2025-26 dated 27.08.2025 floated by the 1^st respondent along with all its further processes leading up to Ext. P3 and to quash the same considering it as illegal and arbitrary, iv) A Writ Mandamus or any other appropriate Writ, Order or Direction directing the 1% respondent to consider and pass immediate orders as per Ext.

P4 representation, forthwith, v) A Writ Mandamus or any other appropriate Writ, Order or Direction permitting the petitioner to withdraw from the tender process with liberty of refund of the EMD and other tender charges deposited by the petitioner, vi) To grant such other reliefs sought from time to time including the cost of this proceeding. vii) English translation of the vernacular would be produced as and when directed by this Hon’ble Court.

3. A statement has been submitted by the 1st respondent in response to the averment contained in this writ petition. In the said statement in paragraphs 10 and 11, it is averred as follows:

“10. That as a direct and automatic consequence of the cancellation of the Tender, the Earnest Money Deposit (EMD) submitted by the Petitioner in connection with the said Tender shall be released and refunded to the Petitioner forthwith, without any delay or deduction. The refund shall be effected through the designated financial channels used for the original EMD payment, within a reasonable period from the date of an order from this Hon’ble Court or from the date of cancellation, whichever is earlier.

11. That the petitioner shall not, at any point in the future, raise, pursue, or enforce any claim for charges, damages, costs, penalties, or any other financial liability of whatsoever nature against the 1 st respondent arising out of or in connection with the aforementioned Tender or its subsequent cancellation. No interest shall be payable on the EMD refund, and no damages, compensation, or costs shall be claimed by the petitioner in respect of the tender process, cancellation, or refund”.

4. Today when the matter came up for consideration, the learned counsel for the petitioner submitted that the petitioner is prepared to undertake that, in the event of the cancellation of the tender and return of the earnest money deposit, the petitioner will not raise any claim for charges, damages caused, penalty, or any other financial liabi