R SHANMUGAM Vs. UNION OF INDIA

JUDGEMENT

(1.) THIS writ petition is directed against the proceedings dated 11.8.2008 on the file of the fourth respondent whereby confirmed sale of condemned Rafmat Wheel Lathe in favour of the petitioner was cancelled on administrative grounds.

(2.) THE factual matrix necessary for the disposal of the writ petition are as under:Petitioner-s versionTHE second respondent issued a notification for auction of various goods including condemned Rafmat Wheel Lathe in -as is where is- condition, fixing the auction on 2.12.1999. In the said notification condemned Rafmat Wheel Lathe was shown as item No. 62 and pursuant to the said notification issued in November, 1999, the petitioner took part in the auction which was conducted by Varma & Company auctioneers on behalf of Integral Coach Factory. THE auction was conducted on 2.12.1999 and the bid given by the petitioner was found to be the highest and as such, the same was accepted by the respondents and accordingly, the petitioner had paid a sum of Rs. 25,000/- on 2.12.1999 and the balance amount was paid on 5.1.2000. As per the practice prevalent in the Railways, they would give a particular date for removal of the scrap or other materials sold in public auction and the same was called -Point Booking Date- and the successful tenderer has to take delivery of the materials on the said date. Since the respondents were not able to uproot the machine they failed to hand over the Rafmat Wheel Lathe to the petitioner.

(3.) IN the counter affidavit filed by the Deputy Chief Materials Manager on behalf of the respondents, they have admitted the auction held on 2.12.1999 and the acceptance of the bid submitted by the petitioner in respect of item No. 62 as the same was the highest offer. The entire payment made by the petitioner was also admitted. It was the contention of the respondents that the machine was not given delivery as it was not possible to uproot the machine easily. However, no demurrage charges were levied on the petitioner for not taking delivery since the machine was not uprooted. The third respondent as per his communication dated 22.3.2000 expressed his inability to uproot the machine since the weight of the machine was about 15 MT. Finally orders were issued whereby the Railways themselves under took the job of uprooting the machinery.