A successful bidder is entitled to a refund of their initial deposit if the failure to pay the balance bid amount is caused by errors or vagueness in the communication issued by the tendering authority, as the bidder is not at fault.

PRAYER:

Writ Appeal filed under Clause XV of the Letters Patent Act, praying to set aside the order dated 16.02.2021 made in W.P.(MD)No.17536 of 2017 on the file of this Court, by allowing this appeal.

JUDGMENT

[Judgment of the Court was made by N.DILIP KUMAR, J.]

1.This Writ Appeal has been filed challenging the order dated 16.02.2021 made in W.P.(MD)No.17536 of 2017.

2.The writ petitioner / respondent was a participant and the successful bidder pursuant to the tender notification dated 17.08.2017 which was in respect of grant of license to conduct rough stone quarry.

3.The writ petitioner / respondent had already tendered 10% of the bid amount ie., Rs.3,61,500/- and when he made an attempt to pay the balance 90% amount, the treasury declined to accept the same on the ground that there was certain confusion in the communication issued by the first appellant. Hence, the writ petitioner / respondent filed a Writ Petition in W.P.(MD)No.17536 of 2017, with a prayer requesting the District Collector to extend the time by one week to deposit the balance 90% of the bid amount.

4.By the time the Writ Petition was taken up, it was nearly 3 ½ hears and the learned Single Judge found that it would no longer be possible to grant the relief sought for and therefore, granted a lesser relief, directing the appellants to refund the 10% of the tender amount ie., Rs.3,61,500/- paid by the writ petitioner / respondent. Learned Single Judge noticed that the forfeiture clause which was sought to be relied upon by the writ appellants is not applicable to the facts of the present case and also noticed that failure to deposit the balance amount arose because of the vagueness in the communication dated 07.09.2017 issued by the first appellant, wherein the amount mentioned in figures did not match the amount mentioned in words. Learned Single Judge had therefore, granted a lesser relief of refund of 10% of the bid amount that is already deposited by the writ petitioner / respondent, since he was not at fault.

5.We do not find any reason to interfere with the reasoned order of the learned Single Judge. Accordingly, the Writ Appeal fails and the same is dismissed. The appellants are directed to refund the 10% of the bid amount ie., Rs.3,61,500/- to the writ petitioner / respondent without interest, within a period of four [4] weeks from the date of receipt of a copy of this order, failing which, the appellants shall pay the said amount with interest at the rate of 8% p.a. There shall be no order as to costs. Consequently, the connected miscellaneous petition is closed.