BHAGYANAGAR ROAD LINES LIQUID TRANSPORTERS HYDERABAD Vs. A P STATE CIVIL SUPPLIES CORPORATION HYDERABAD

JUDGEMENT

(1.) The petitioner questions the cancellation of the award of contract to it, by the respondent under proceedings No.Movt/PDS/5(51)/93, dated 31-10-1993 of the Vice Chairman & Managing Director of the respondent, said to have been received by the petitioner on 5-11-1993.

(2.) The Writ Petition was presented on 4-11-1993 seeking a direction to the respondent to conclude the contract forthwith and after receiving the impugned proceedings dated 31-10-1993, W.P.M.P. No.21209 of 1993 was filed seeking the additional prayer questioning the said proceedings, and the said W.P.M.P. was ordered on 6-11-1993.

(3.) The facts are as follows:- The petitioner submitted its tender pursuant to the tender notice for transport of edible oils No. Movt.5(51)/93, dated 1-10-1993 issued by the respondent inviting sealed tenders "for transport of edible oils in Bulk from Visakhapatnam to any place in Andhra Pradesh on per KM/per MT for to and fro distance for the running Kilometre basis", along with the requisite bank draft for Rs.50,000/- towards earnest money deposit and its tender was accepted under order in proceedings No.Movt/PDS5(51)/93,dated20-10-1993 of the Vice-Chairman & Managing Director of the respondent after prior negotiations, in the following manner: "The tender filed by M/s. Bhagyanagar Road Lines in response to the tender notice dt.1-10-1993 for transportation of edible oil in bulk from S.T.C. (I), Visakhapatnam to various places in Andhra Pradesh for the year 1993-94 is accepted at the following rates: <FRM>mah.B.300905218.htm</FRM> I may state here that in this Writ Petition the dispute relates to Serial Numbers 3,4 and 5. The said order stipulated that "the tenderer should enter into an agreement in the prescribed proforma within three days from the date of receipt of this proceedings on a non-judicial stamp paper worth Rs.100/- (Rupees one hundred only)" with the respondent-corporation and that the tenderer should also furnish Rs.75,000/- towards balance amount of security deposit (in addition to the earnest money deposit of Rs.50,000/-) and that if the tenderer failed to enter into an agreement within 3 days from the date of receipt of the said order, 'the award of the contract' would be cancelled besides forfeiture of EMD and collection of liquidated damages. The petitioner sent a demand draft on 21-10-1993 for Rs.75,000/- towards security deposit along with a covering letter dated 21-10-1993. By another letter of the same date i.e., 21-10-1993 addressed to the Vice-Chairman & Managing Director of the respondent the petitioner, inter alia, stated as follows:-