TANDHAN POLYPLAST LTD. Vs. UNION OF INDIA

JUDGEMENT

(1.) The petitioner Company being aggrieved with the impugned order dtd. 26/2/2025, issued by the respondent (Food Corporation of India), whereby besides terminating the contract, the respondents have also debarred/blacklisted the petitioner Company from participating in any future tender with FCI for a period of 3(three) years, is before this Court by way of this instant writ petition.

(2.) The brief facts are that the petitioner Company had participated in the tender process, for supply of Cross Laminated Thermoplastic Fumigation (CLTF) covers, which had been issued on the GEM portal dtd. 24/7/2024, with the last date of submission of bids and opening fixed on 7/8/2024. The bid validity period was 90(ninety) days from the last date, which expired on 7/11/2024. Though the tender process was not completed by the respondents by 7/11/2024, on 25/12/2024, the respondents awarded the contract to the petitioner Company and issued the contract through the GEM portal for supply of the materials, CLTF, with the total contract value being Rs.7,16,162.00 (Rupees Seven Lakhs Sixteen Thousand One Hundred and Sixty-Two) only.

(3.) On 26/12/2024, the respondents then emailed the petitioner Company to arrange for pre-dispatch inspection and it was also informed that the petitioner Company was required to furnish a security deposit of Rs.35,808.00 (Rupees Thirty-Five Thousand Eight Hundred and Eight) only, being 5% of the contract value within 7(seven) days. The Company to this information, had by an email dtd. 15/1/2025, requested for extension of time due to the long vacation and also informed the FCI that the predelivery inspection could be carried out on 18/1/2025. The said request however was declined vide communication dtd. 4/2/2025, citing a clause in the bid document, which provided that if a bidder failed to deposit the security deposit by the cessation of extended period also, it shall be lawful for the FCI to terminate the contract treating it as a breach of contract, and accordingly the contract was terminated. Thereafter, the GEM contract dtd. 25/12/2024, was terminated on 4/2/2025, and subsequently by the impugned order apart from termination, the petitioner Company was debarred from participating in future tenders of the FCI for a period of 3(three) years.