SANTOSH KUMAR CHOPDA Vs. STATE OF M P

JUDGEMENT

(1.) PETITIONER in this writ petition is challenging the demand notices P-20 and P-14 and the orders passed by the Recovery Officer P-15 and P-16.

(2.) PETITIONER submitted the tender for purchase of Tendu leaves for 1984 season; tenders were called for auction of Tendu leaves on 3-8-1985 at Divisional Forest Office, Seoni for Unit No. 3, Lot Nos. 1 and 2 of 1121. 305 standard bags and 1122 standard bags respectively. Petitioner had offered his bid for Unit No. 3, Lot No. 1, Lakhnadone, at the rate of Rs. 125/- per standard bag and for Lot No. 2 of Unit No. 3 at the rate of Rs. 127/- per standard bag. Total price for Lot No. 1 was Rs. 1,63,212. 95 paisa and for Lot No. 2 Rs. 1,65,927/ -. As per terms and conditions of the tender notice before bidding, earnest money to the tune of Rs. 6,000/- was to be deposited for each lot thereafter the bid sheet was to be signed on offering the bid. Thereafter 25% of the amount was to be deposited on making of the said bid. The amount of Rs. 6,000/- was to be adjusted at the time of sanctioning the final account. Upon acceptance of the bid the bidder was required to expedite 100% of the amount by furnishing security. Petitioner deposited Rs. 12,000/- as earnest money separately against two lot. Bid of the petitioner was accepted by Conservator of Forest as per letters D-2 and D-3 dated 9-9-85 and the petitioner was asked to enter into the contract and complete all the formalities.

(3.) PETITIONER alleges that after bidding petitioner went to the depot situated at about 27 miles away from the place of the auction Seoni and found that Tendu leaves were putrid; crispness of the leaves was totally destroyed and the same were useless for purposes of making bidis. The petitioner had informed Deputy Ranger of Forest that the entire stock of Tendu leaves had been putrefied and was of no use to the petitioner as the entire market value of the leaves stood diminished due to poor storage facility. Petitioner submits that subsequently bid amount was reduced as apparent from Annexures D-4 and D-5 dated 20th September, 1985. Petitioner did not lift the bags and submitted no reply and petitioner thought that at the most earnest money deposited would be forfeited. The respondents kept silent for about 5 months and the bid of the petitioner was cancelled on 25-1-86 as per orders D-15 and D-16; it was also informed that earnest money stand forfeited and the lot would be reauctioned at the petitioner's risk. Thereafter the reauction was held on 22-9-86 after about one year and five months of submitting tender by petitioner; tenders were initially called in the month of March, 1985 and the auction in which petitioner's tender was accepted was held on 3-8-85. The respondents raised the demand of the difference of the amount which was offered by the petitioner and fetched by the respondents in reauction held on 22-9-86. As per notice D-14 demand of Rs. 1,57,471. 45 paisa was raised against both the lots.