Advocates:
['HEMANT KR SHIKARWAR', '', 'PRIYANKA', 'MANISH KUMAR SINGH', 'JUHI KUMARI', 'PRASHANT KR SINGH']

IN THE HIGH COURT OF JHARKHAND AT RANCHI

W. P. (C) No. 3887 of 2022

M/s. Maa Maihar Steel through its partner Diwakar Kumar,

District-Bokaro

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Petitioner

Versus

1. Damodar Vally Corporation, C.T.P.S., Chandapura, Bokaro

2. M.S.T.C, Ltd, A Government of India Enterprises,

M.S.T.C. Exploring Building, 4^th Floor, CMPDI Campus

Gondwana Palace, Kanke Road, Ranchi

3. Senior Divisional Engineer (E), C&M, DVC Headquarter,

Registered office 225-C, AJC, Bose Road, Kolkatta

4. Dy. Chief Engineer (MECH), CTPS, Chandrapura

District-Bokaro

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Respondents

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CORAM: Hon’ble Mr. Justice Aparesh Kumar Singh

Hon’ble Mr. Justice Deepak Roshan

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For the Petitioner

: M/s. Hemant Kumar Shikarwar,

Juhi Kumari, Advocates

For the Respondent-DVC

: Mr. Prashant Kumar Singh, Advocate

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04/29.09.2022

Heard learned counsel for the parties.

2.

After being the lowest bidder under the e-auction held on 26^th

April, 2022 by MSTC Limited for the Damodar Valley Corporation (in short

8DVC9) relating to lifting of scrap for a total value of Rs. 3,24,65,00,000/-,

Letter of Acceptance was issued on 10^th May, 2022 in favour of the

petitioner. Petitioner was required to make deposit of first instalment by 24^th

May, 2022 of an amount of Rs. 37,54,17,144/-. Petitioner had made a deposit

of pre-bid EMD of Rs. 6.00 Crore. However, he could not make the payment

timely and asked for extension of time for making payment of first

instalment including penalty in the next 15 days. Vide Annexure-3 Series,

extension for payment of first instalment was granted with late penalty.

However, by the extended date 1^st August, 2022, petitioner could not make

the payment along with interest. The sale order was accordingly cancelled on

1^st August, 2022 vide Annexure-6 and the amount of EMD and total

deposited amount of Rs. 27,38,25,726/- were forfeited. Therefore, petitioner

approached this Court with a prayer to quash the termination of sale order

and forfeiture of the amount deposited. It also prayed for a direction upon the

respondents to accept the instalments which the petitioner was ready to make

along with penalty. Petitioner also prayed for restraining the respondents

from entering into fresh auction.

2.

Respondents were asked to file counter affidavit which they have

filed yesterday. Rejoinder affidavit has also been filed by the petitioner.

2.

Interlocutory Application has also been filed for stay of fresh e-auction

notice made by the respondent-DVC. Petitioner has made a plea of violation

of principles of nature justice as the termination order was passed without

any notice in teeth of the conditions at Clause (hh), part of the Standard Bid

Document. Respondents have relied upon Clause-L which reads as under:

<LATE PAYMENT PENALTY: It shall be in the benefit of the

buyer to pay all the instalments well within the stipulated time

frame. However, in case of default in payment within the stipulated

time, Delayed Payment Penalty @ 0.50% per week or part thereof

for the material value against the concerned installment (i.e., 10%

of the total sale value) shall be charged up to four (4) weeks.

Acceptance of late payment beyond four weeks and thereafter may

be allowed/accept at the sole discretion of DVC. However, DVC

reserves the right not to accept the payment with or without the

additional charges after the expiry of the above mentioned due time

limit of four(4) weeks and in such an event the sale order shall be

automatically terminated and the Earnest Money Deposit/Security

Deposit of the bidder along with the instalment payments submitted

till date shall automatically stand forfeited without prejudice to the

right of DVC to dispose off the material at the risk and cost of the

bidder/buyer and realize the difference, if any, from the

bidder/buyer. If DVC allows to accept the payment of instalment

after four weeks wit