SARASWATI DYNAMICS PVT LTD Vs. UNION OF INDIA

JUDGEMENT

(1.) Petitioner M/s. Saraswati Dynamics Pvt. Ltd. seek a writ of certiorari for quashing letter/order numbering 1(4)/2000/D (S-II)/CPO(AMT)-1331, dated 6-8-2001, passed by the respondent as also quashing of all other consequential letters/orders issued by subordinate offices/agencies, departments, authorities under the Ministry of Defence, pursuant to the above order dated 6-8-2001. Petitioner also seeks a writ of mandamus for restoration of all the cancelled supply orders/contracts and to grant residual delivery period of with additional mobilization period of a weeks to the petitioner for fulfilment of the contractual obligations. A restraint is also sought on the respondents and its subordinate offices and organisation from awarding respective contracts already entered into with the petitioner, to any third party.

(2.) By the impugned order Annexure P2, Director, Department of Defence Production and Supplies, cancelled supply order No. 1(4)/2000/I (S-II)/CPO(AMT)-1331 dated 18-7-2001 placed on the petitioner for supply of Variable Speed Gear Units, required for the Bofor Guns. The impugned order states that one Shri Naresh Kataria, Director of the petitioner had approached an Officer of the Department of Defence Production and Supply with an offer of bribe (cash payment). Indulgence in corrupt practices attracted provision of Section 21 of the General Conditions of Contracts . This being breach of conditions of contract, the supply order was cancelled with the approval, of the Competent Authority, subject to the right to recover loss occasioned by such cancellation. Additional, annual maintenance contract with the petitioner was also cancelled. Bank guarantees have also been invoked. Petitioner made numerous representations, but no heed has been paid to them and respondents have even refused to acknowledge the said representations, far from considering the same.

(3.) The entry of Shri Naresh Kataria, and representatives of his company was banned in the Ministry and its subordinate offices. Petitioner's company was also banned from doing any business with the Ministry and its subordinate offices. Pursuant to the above order, the supply orders placed on the petitioner by other subordinate offices of the Ministry and the factories/units have also been cancelled by similar orders. The said cancellation orders and supply orders numbering 14 in all have been produced on record in the writ petition.