N. KUMAR ASSOCIATES INTERNATIONAL Vs. UNION OF INDIA

JUDGEMENT

(1.) The petitioner had participated in tender No. 79/14 -15 dated 18.07.2014 for the work "House Keeping of Yamuna Rest House, Rail Niwas, Annexe Yamuna & ORH near Rail Club in the Sec. of SSE/W/Transit Camp under ADEN/E -II". The petitioner's bid was accepted by the competent authority. The petitioner had made, inter alia, an earnest money deposit of Rs. 1.80 lakhs alongwith the tender and the same was retained as security money of the work. A letter of acceptance was issued to the petitioner by the competent authority of the Northern Railways on 12.08.2014. It was indicated in the letter of acceptance that the contract value of the work would be Rs. 66,34,505.04 and that the performance guarantee amounting to Rs. 3,31,730/ - was required to be deposited within 30 days failing which penal interest @ 15% per annum would be charged as per tender condition No. 5.2.1(a). The said tender condition No. 5.2.1(a) reads as under: -

(2.) The petitioner did not deposit the performance guarantee within the initial period of 30 days stipulated in the said tender condition. However, the petitioner deposited the performance guarantee alongwith interest @ 15% per annum on 13.10.2014. The respondent thereupon issued a letter dated 23.12.2014 terminating the contract and forfeiting the earnest money of Rs. 1.80 lakhs. The respondent also debarred the petitioner from participating in future tenders for the subject work. The petitioner is aggrieved by the said letter dated 23.12.2014.

(3.) The impugned letter dated 23.12.2014 is set out hereinbelow: -