MARTIN LOTTERY AGENCIES LTD Vs. STATE OF GOA

JUDGEMENT

(1.) The petitioners, in these two petitioners, take exception to the forfeiture of the Earnest Money Deposit of Rs. 25,00,000/- each, furnished by the petitioners while responding to the notice inviting tender for appointment of sole selling agents/distributors for sale of Goa State Lotteries.

(2.) The Government of Goa had invited tenders vide its Tender Notice dated 13.10.1999. In response to this notice, the petitioners in the two petitions submitted their offers and furnished sum of Rs. 25,00,000/- each, as Earnest Money Deposit. It is not in dispute that one M/s. Pavana Enterprises was the highest bidder whose offer was accepted by the State when the tenders were opened. On 18.11.1999, the petitioners in Writ Petition No. 33/01 M/s. Anu Agencies had withdrawn their offer. M/s. Pavana Enterprises backed out on 2.12.1999. On the same day, the State Government offered distributorship to M/s. Anu Agencies which was second highest bidder, on condition that the distributorship would be subject to the final decision in Writ Petition No. 320/99. The petitioner M/s. Anu Agencies protested and demanded refund of earnest money deposit. Anu Agencies was informed on 6.12.1999 that the earnest money stood forfeited.

(3.) We have heard Mr. Sonak, the learned Counsel for the petitioners and Mr. Rivonkar, the learned Government Advocate for the respondents. A "deposit" by its very nature is something which has to be refunded, unless some term of contract enables forfeiture.