SEKHSARIA EXPORTS Vs. UNION OF INDIA

JUDGEMENT

(1.) THIS petition is directed against the action of the respondents seeking to encash the bank guarantees furnished by the petitioners to perform their part of the obligation arising from the contracts, if allotted. The petitioners contend that since the offers or bids made by them itself having been withdrawn much before the acceptance thereof, the offers did not culminate in a concluded contracts, as such the respondents were not entitled to invoke bank guarantees alleging breach of contracts on the part of the petitioners.

(2.) THE facts giving rise petition in nutshell are as under: the petitioners are the partnership firm, inter alia, carrying on business as Importers and Exporters of diverse quantities of cotton. Respondent No, 1 is Union of India. Respondents Nos. 2 and 3 are the Textile Commissioner and Joint Textile Commissioner respectively.

(3.) BY order No. 1/2/89-Cotton, the respondent No. 2 proclaimed that respondent No. 1 had decided to release export quote of 50,000 bales (of 170 kg. each) of Bengal Deshi Cotton of 1988-89 crop for the private rate during cotton year 1988-89.